EAR – Enrolled Actuaries Report

EAR – Enrolled Actuaries Report

• actuary.org/content/enrolled-actuaries-report
  • ear_198207 
  • ear_198304
  • 1985 04 – EAR – Enrolled Actuaries Report

• Long ago the actuary earned the reputation of being the engineer of the life insurance business, the one who understands what makes it all work and can make it work better.  (p4)

1979 06 – AAA – EAR – Enrolled Actuaries Report, American Academy of Actuaries – 

• Future developments are foreseen to include a switching from traditional life insurance to universal life…  (p5)

1982 07 – AAA – EAR – Enrolled Actuaries Report 

• 1982 07- AAA – EAR – Enrolled Actuaries Report
  • Recent Developments in Corporate Plan Termination Insurance, by J. Thomas Bolen

• p5 – The frequency of publication of the Newsletter was increased to bimonthly during 1977 and to monthly during 1981. In October 1982 its name was changed to The Actuarial Update.
• Also, the Enrolled Actuaries Report, originally a special section of the Newsletter, has been turned into a separate publication. Finally, theJournaal has been published as a record of each annual meeting since the 1975 annual meeting.
• Since January 1, 1977, theJournal has also contained official statements of the Academy.

actuary.org/wp-content/uploads/2017/11/yearbook_1983.pdf

• [Bonk: Bad Link]

• 1983 04 – AAA – EAR –  Enrolled Actuaries Report – https://www.actuary.org/archives/pdf/ear/ear_198304.pdf – [Bad Link]
• Two basic funding approaches to be used with universal life product were discussed.
  • One approach treats it basically as a traditional life insurance policy by choosing an interest assumption to accumulate the cash value and offset total cash by this assumed accumulated cash value at retirement.
    • Excess earnings over the “theoretical” cash value would be calculated each year and treated as a side fund asset. The audience indicated this approach would not constitute a change in funding method for a plan previously funded with traditional whole life insurance.
  • The second approach is a “term-cost” approach, which funds the retirement benefit on a noninsured basis and then adds a term cost to cover the death benefit.
    • This does not require any separate interest assumption for the insurance, as all assets are treated as a combined fund.
    • Many in the audience believed this would be a change in method for a plan previously using traditional split-funding with whole life insurance; however, a class ruling to change methods could make the transition less painful .