Actuarial
Q: How Can Universal Life Insurance Be Classified? Permanent / Whole / Term / Other
Q: How Can Universal Life be Classified? Permanent / Whole / Cash Value / Term / Other Why is Universal Life called Permanent or Whole Life? Maybe Universal Life Shouldn’t be Called Permanent or Whole Life How Else Could Universal Life Be Explained? NAIC Drafting Note: Although highly flexible, Universal Life insurance is generally considered…
Read MoreInterest Rate
Interest Rate Assumptions Grading Interest Rate Risk Low Interest Rate Environment New Money vs Portfolio Money Maybe he is not getting all the disclosure he needs, as far as the continuing benefit is concerned, when the interest rates change from that illustrated. The interest assumption is one that we really struggled with. — Gary P.…
Read MoreGrading
Grading Actuaries did use interest assumptions in pricing their product, often as aggressive as 6 1/2%, which were graded to an actuarially responsible 4% or so. — Stanley B. Tulin 1981 – SOA – Asset Management for an Insurance Company, Society of Actuaries – 14p Where were the people that wanted to do that when we…
Read MoreValuation
Valuation Liquidation Belth FRB Valuation Loans Standard Valuation Law Valuation Actuary Valuation Manual – NAIC Valuation and Non-forfeiture 1979 – SOA – Discussion of the Preliminary Report of the Committee on Valuation and Related Problems, Society of Actuaries – 44p 1987 – SOA – Valuation Actuary Handbook. Chapter I – Life Insurance Company Statutory Valuation – 34p…
Read MoreOn Track – Off Track
Off-Track / On-Track In essence, the model regulation assumes that at issue, all universal life policies are permanent plans. [Bonk: model regulation = ULMR – Universal Life Model Regulation] The r-ratio is meant to measure the extent to which the policy is “on track” as a permanent plan. 2018 – Book – Statutory Valuation of Individual…
Read MorePolicy Maturity
Policy Maturity Isn’t it more realistic to assume a customer wants to know what the cost will be if he carries that policy out to maturity? (p13) — Senator Howard W. Cannon (D-NV), Chairman of the Committee 1979 0710 and 1017 – GOV (Senate) – FTC Study of Life Insurance Cost Disclosure, Howard Cannon (D-NV) …
Read MoreActuarial Guidelines
AGs – Actuarial Guidelines 1. Report of American Academy of Actuaries Liaison Committee Gary D. Simms, general counsel of the American Academy of Actuaries, summarized the report of the Liaison Committee (Attachment One). He indicated the purpose of the committee was to interact with the NAIC on a policy level as well as to provide…
Read MoreGMF – Guaranteed Maturity Fund
GMF – Guaranteed Maturity Fund The guaranteed maturity fund at any duration is that amount which, together with future guaranteed maturity premiums, will mature the policy based on all policy guarantees at issue. NAIC – Universal Life Insurance Model Regulation (#585): – 22p Shane Chalke ULMR – Universal Life Insurance Model Regulation – MDL-585 –…
Read MoreRetrospective
Retrospective Retrospective vs Prospective Mr. Carroll: Retrospective and prospective, if everything fits and works nicely, as Doug pointed out, it doesn’t matter. You get the same answer looking both ways. It only matters when things are out of sync and something has gone wrong or gone better than has been reflected. That’s how we come…
Read MoreThe Actuary – Illustrations
The Actuary – Illustrations 1988 The Actuary Illustrations a Call to Action Daphne Bartlett
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