Companies7788k.com

7788k.com  时间:2021-03-17  阅读:()
internationalSOCIETYOFACTUARIESfuturismactuaryofthefuturecomputersciencesmallerinsurancecompanyinvestmentproductdevelopmentreinsuranceeducation&researchpensionnontraditionalmarketinghealthPROFESSIONALACTUARIALSPECIALTYGUIDE3/1/97X-2-97POLICYHOLDERDIVIDENDSANDNONGUARANTEEDELEMENTSINTHEU.
S.
ANDCANADATheLifeInsuranceSpecialtyGuidesCommitteeoftheSocietyofActuarieshasprovidedthisSpecialtyGuideforcontinuingeducationpurposes.
Itisintendedtoprovidetheuserwithasummaryofrepresentativesourcesofcurrentgeneralknowledge.
NeithertheSocietyofActuariesnortheCommitteeintendsorrepresentsSpecialtyGuidestobecompleteortheirusenecessarilyrequiredorsuf-ficientformeetingcontinuingeducationrequirementsoranyotherprofessionalcompetencystandardsofanyorganization.
SocietyofActuaries,475N.
MartingaleRd.
,Suite800Schaumburg,IL60173-2226PrintedintheUSAfinancialreportingOverviewThisguideconcernspolicyholderdividendsandothernonguaranteedelementsinindividuallifeinsuranceandannuitiesinCanadaandtheU.
S.
ParticipatinginsuranceismostoftenofferedbymutualsintheU.
S.
andbybothmutualandstockcompaniesinCanada.
Thedeterminationofdivisiblesurplusistheresponsibilityofthedirectorsofacompany.
Policyholderdividendsonparticipatingpoliciesrepresentthesharingofdivisibleordistributablesurplusamongpolicyholders.
Underlyingprinci-plesareequityandtheprovisionofinsuranceatcost.
UseofthecontributionprinciplerepresentsgenerallyacceptedactuarialpracticeinbothCanadaandtheU.
S.
Nonguaranteedelementsotherthandividendsaregenerallyfoundinnonparticipatingpoliciesbutmayalsobeanelementofcurrentperformanceinsomeparticipatingpolicies.
Nonguaranteedele-mentsmayincludeanyofthefollowing:Currentpremiumrateslowerthanthemaxi-mumguaranteesonanindeterminatepremiumpolicyCurrentinterestrateshigherthantheguaran-teedrates,currentcostofinsurance,orexpensechargeslowerthanguaranteedmaximumsoninterest-sensitiveoruniversallifepoliciesNonguaranteedbonuses,suchasareturnofsomechargesorcreditofadditionalinteresttothepolicy,atcertaindurations.
Initialnonguaranteedelementsanddividendsaresetaspartofproductdesignandpricing.
Theymayberevisedforin-forcepoliciesbasedonexpe-rienceandprofitabilityobjectivesandresults.
Actuarialstandardsofpracticeexistfordividenddeterminationinbothcountriesandnonguaran-teedelementsintheU.
S.
Thedividendstandardsarequitesimilartooneanotheranddealonlywiththeequitablesharingofdivisiblesurplus.
InDecember1995theNAICdevelopedamodelregulationonthepermissiblebasisofillustrateddividendsandnonguaranteedelements.
Thismodelintroducestheconceptsoftheillustrationactuaryandadisciplinedcurrentscale.
TheActuarialStandardsBoardhasdevelopedrelatedactuarialstandardsofpractice.
TherehavebeensimilardiscussionsinCanada,althoughprogresstodatehasbeenslower.
TheRoleoftheActuaryActuariescarryoutthebasicdesignandpricingoflifeinsurancepolicies,includingtheinitialdeterminationoftheillustrateddividendscaleandcurrentnonguaranteedelements.
Afterissue,actu-ariesmonitorexperienceandevaluatetheneedforchangesinlightofthatexperienceandemergingprofitability.
Annualasset-adequacytestingbythevaluationactuarytakesintoaccountthedividendsandnonguaranteedelementsassumedinprojectedproductperformanceandthewaysinwhichthoseelementsmaybeadjustedinconjunctionwiththevariousprojectedscenarios.
InbothCanadaandtheU.
S.
theaggregateamountofdividendstobedistributedtopolicy-holders(thedivisiblesurplus)isdeterminedbyacompany'sdirectorsactingontheadviceofseniormanagement,whichusuallyincludesthedividendactuary.
Theamountisdeterminedinlightofmanyfactorswithanunderlyingrequirementofcontinuingsolvencyofthecompanyanditsabilitytofulfillallcontractualobligations.
2Oncetheamountofdivisiblesurplusisdeter-minedbycompanydirectors,theprimaryroleofthedividendactuaryistoestablishmethodstodistributeitequitablytopolicyholdersinaccor-dancewithanyregulatoryrequirementsandpro-fessionalstandardsofpractice.
Thesestandardsrequirethatthedividendactuarydocumenthisorherrecommendationsinareporttomanagement.
Thisreportmuststatewhetherdividends,eitherillustratedorcurrentscale,havebeendeterminedinaccordancewithactuarialstandardsofpractice.
Theactuaryresponsibleforrecommendingthelevelofnonguaranteedelementsmustalsoprepareamanagementreportoutliningthebasisonwhichthoseelementsaredeterminedandredetermined.
UndertheNAICModelRegulationonSalesIllustrations,theillustrationactuarymustprovidespecifiedcertificationsregardingthebasisofdividendsandothernonguaranteedelementsauthorizedforillustrationbythecompany.
Thefirststepinsettingdividendsforparticipat-ingpoliciesisthedeterminationofthetotaldivisi-blesurplus.
Thisdivisiblesurplusisthenallocatedamongparticipatingpolicyholdersaccordingtooneofvariousformulaapproaches.
Theprimarysourceofcapitalforamutualcom-panyhastraditionallybeenearningsandthemanagementofdividendshasadirectimpactonearnings.
Fundamentalissuesinthedetermina-tionofdivisiblesurplusinclude:creatingastrate-gicbusinessplanthatdevelopsasustainablecompetitiveadvantage;determining,creating,andmaintainingrequiredcapital;deployingthatcapitalappropriately;andprovidingparticipatinginsuranceatcostoverthelongterm.
Thedeterminationofdivisibleordistributablesurplusisatthesolediscretionofthedirectorsofthecompany,subjecttotheminimumandmaxi-mumregulatorylimitations.
Thedirectorsmustconsidersuchfactorsasthegeneralfinancialstrengthofthecompany,recentearningslevelsandprofitabilityofproducts,strategicbusinessplans,competitiveposition,growthratesofvarioustypesofbusiness,andrelatedcapitalrequirementsandfinancialconditiongoals.
Thedirectorsmustalsoconsiderthefairandequitabletreatmentofthecompany'sparticipatingpolicyholders.
Oncethedivisiblesurplusisdetermined,itmustbeallocatedtothevariousclassesofin-forcepolicies.
(ThedeterminationofdividendclassesisdiscussedfurtherunderthetwosectionstitledPhilosophicalandPracticalIssuesforDividendsandNonguaranteedElements,andProfessionalStandardsofPractice.
)Broadlyspeaking,thisallocationisdoneinproportiontocontributedsurplus.
Commonlyusedtechniquesforsettingindividualdividendsincludethethree-factorcontributionmethod,theexperiencepremiummethod,andtheassetshareorfundmethod.
Foranyoftheseformulaapproaches,thedividendactuarymusthaveeffectivesystemstomeasure,byclassofbusiness,theactualexperi-encethathasemergedfrommajorsourcesofearn-ing,thatis,interestincome,expense,mortality,andpersistency.
Considerationsindevelopingcurrentexperiencefactorsincludeuseofportfolio-averagingorinvestment-yearmethods,taxationfactors,andtheeffectofpolicyloans.
Manyotherconsiderationsalsoapply,suchaspolicyholderexpectations,legalconstraints,andprofessionalstandardsofpractice.
Thenotionoftemporarysurpluscanbeimportanttosurpluscreationandmanagement.
Smallmar-ginsforvariousexperiencefactorsareheldbackinearlypolicyyears;thatcreatesearningsandthere-foresurplus.
Toprovideinsuranceservicesandbenefitsatnetcostandtotreatparticipatingpolicy-holdersfairlyandequitably,temporarysurplusmaybereturnedtopolicyholdersintheformofterminaldividendsatsurrenderormaturityofapolicy.
Alternatively,temporarysurplusissometimesreturnedintheformofhigherannualdividendsatlaterdurations.
TerminaldividendsaregenerallymodestintheU.
S.
InCanada,severalofthelargerinsurershaveconsiderablymoresignificantterminaldividendarrangements,whicharethenanimportantpartofthecompany'ssurplusmanagementprogram.
Thisisperhapsareflectionoftheirinternationalcharac-terandfamiliaritywithpracticeintheU.
K.
,whereterminaldividendsareuniversallyused.
AnotherfactormightbetheNewYorklimitations,whicharealsoreferencedinthedeductibilityofIRCSection7702.
Inrecentyears,regulatorycapitaladequacyandfinancialconditionstandardsthatprovideobjectivestandardsforsurplusmanagementhavebeenintro-ducedinboththeU.
S.
andCanada.
Thesecapitalrequirementsmayalsoprovideadditionaljustifica-tionforterminaldividendsasameasureoftheriskcapitalreleasedwhenapolicyterminates.
RecentadoptionbytheCanadianInstituteofActuariesofanewvaluationstandardofpracticeforparticipatingpolicies(ValuationTechniquePaperNo.
10)mayhaveanimportantbearingonthesematters.
Thenewstandardrequiresthatalldividends,includingterminaldividends,beprovidedforindeterminingtheactuarialreserves.
DeterminationofDivisibleSurplusandPolicyDividendsSaunders,R.
Arthur.
"IndividualLifeInsuranceDividends,"SocietyofActuariesStudyNote340-33-89.
Thisstudynoteprovidesanoverviewofthecon-siderationsrequiredinthedividenddeterminationprocess.
Itdiscussesthedeterminationofdivisiblesurplus,variousformulaapproaches(three-factormethod,experience-premiummethod,andtheassetshareorfundmethod)thatarecurrentlyinusetosharethedivisiblesurplusamongpartici-patingpolicyholders,dividendillustrationsandpracticalconsiderationssuchaspolicyholderexpectations,legalconstraints,professionalstandardsofpractice,approximations,andadhocadjustments,considerationsindevelopingexperi-encefactors,andmonitoringsystems,capitalgains,andpolicyloans.
Levelofdifficulty:BasicPages:55Huntington,HenryS.
"DistributionofSurplus,"Chapter2inSocietyofActuariesStudyNoteB-108-79(1982Version).
Althoughthisstudynotehasbeenreplaced,itcontainsathoroughdiscussionofsomeofthebasicconcepts.
Levelofdifficulty:BasicPages:45Black,KennethJr.
andSkipper,HaroldJr.
"SurplusandItsDistribution,"lastsectionofChapter12inLifeInsurance.
12thed.
,EnglewoodCliffs,N.
J.
:Prentice-Hall,1994,p.
601–15.
Thistextgivesabriefoverviewofdivisiblesurplus,frequencyofdistribution,thecontributionprinci-ple,anddescribesthethree-factorcontributionmethod(themostwidelyusedapproachforsur-plusdistribution)thatconsidersthethreemajorsourcesofsurplus:excessinterest,mortalitysavings,andexpenseorloadingsavings.
Levelofdifficulty:BasicPages:15Trowbridge,CharlesL.
"TheoryofSurplusinaMutualInsuranceOrganization,"TransactionsoftheSocietyofActuariesXIX,PartI(1967),p.
216–66.
Thisarticleaddressessomefundamentalques-tions:WhatissurplusWhatisitspurposeWhatmagnitudemightitbeFromwhencedoesitariseWhatareitsimplicationswithrespecttoequitybetweenpolicyholdersTheintentistodevelopthebeginningsofacomprehensivetheoryofsurplus.
Levelofdifficulty:BasicPages:16Jackson,RobertT.
"SomeObservationsonOrdinaryDividends,"TransactionsoftheSocietyofActuariesXI(1959),p.
764–811.
Thispaperandassociateddiscussionsprovidesomeusefuldeliberationofthedeterminationofdivisiblesurplus,terminaldividends,andtheconceptoftemporarysurplus.
Levelofdifficulty:BasicPages:48Leckie,RobinB.
"SomeActuarialConsiderationsforMutualCompanies,"TransactionsoftheSocietyofActuariesXXXI(1979),p.
187–259.
Thispaperattemptstodevelopanactuarialration-alizationforthegovernanceofamutuallifeinsur-ancecompany.
Theissuesofsurplustargetsandofthesizeandpurposeofmutualcompanysurplusareaddressed.
Levelofdifficulty:IntermediatePages:23"ReportoftheTaskForceonMutualLifeInsuranceCompanyConversion,"TransactionsoftheSocietyofActuariesXXXIX(1987),p.
295–391.
Animportantpartofthisreportisananalysisofthefinancialmanagementprinciplesandpracticesusedbymutualcompanies.
Thereisaparticularfocusontheprinciplesemployedinthemanage-mentofamutualcompany'scapitalstructureincluding,importantly,theinterrelationshipofthissubjectonpolicypricinganddividends.
Levelofdifficulty:IntermediatePages:97NationalAssociationofInsuranceCommissioners.
NAICLifeRisk-BasedCapitalOverviewandInstructionsBook.
KansasCity,Mo.
:publishedannually.
ThisoverviewdetailsallthecomponentsofthecurrentU.
S.
risk-basedcapitalformulawithgeneraldescriptionsofthebasisforeachcategoryandspecificinstructionsoncompletion.
Levelofdifficulty:IntermediatePages:23plusblankform3OfficeoftheSuperintendentofFinancialInstitutions.
"OSFIGuidelinesforLifeInsuranceCompaniesandFraternalBenefitSocieties(MCCSR),"SocietyofActuariesStudyNote442-92-95.
Thisguidelinedefinesthefederalrequirementsfortheminimum-continuingcapitalandsurplusrequirementsthataCanadiancompanyoracompanyoperatinginCanadamusthold.
Levelofdifficulty:IntermediatePages:100NationalAssociationofInsuranceCommissioners.
ReportoftheAdvisoryCommitteetotheLifeRisk-BasedCapitalWorkingGroup.
KansasCity,Mo.
:November27,1991.
Thisreportexplainsthebackground,objectives,andanalysisdoneindeterminingtheinitialU.
S.
risk-basedcapitalfactorsforlifeandhealthcompanies.
Levelofdifficulty:AdvancedPages:59Cody,DonaldD.
"AnExpandedFinancialStructureforOrdinaryDividends,"TransactionsoftheSocietyofActuariesXXXIII(1981),p.
313–65.
Thispaperdevelopsadividendfinancialstructureandadividendformulabasedonthecontributionprincipleinacompletelyexpandedformat.
Objectivesaresuggestedforthedesignofadivi-dendsystemthat(1)fitsanenvironmentdemand-ingcarefullydefinedanddemonstrableequityamongdividendclasses,(2)isunderstandableandcontrollablebymanagement,and(3)hascontinuityfromyeartoyear.
Levelofdifficulty:AdvancedPages:53PhilosophicalandPracticalIssuesforDividendsandNonguaranteedElements4Understandingthephilosophyunderlyingdivi-dendsisanimportantpartoftheprocessofdividenddetermination.
Twoconceptsarefunda-mentaltoparticipatinglifeinsurance:insuranceatcost,inwhichprofitsinexcessofthoserequiredfornormalcompanysafetyandgrowtharereturnedtothepolicyholders;andequity,inwhicheachpolicyholderpaysanequitableshareofthenetcost(includingthecostofcapital)associatedwiththeblockofbusinesstowhichhisorherpolicybelongs.
ThecontributionprincipledefinedintheAmericanAcademyofActuaries'ActuarialStandardofPracticeNo.
15,andthecomparableCanadianInstituteofActuaries'StandardofPractice,requiresthataggregatedivisiblesurplusbedistributedamongpoliciesinthesamepropor-tionasthepoliciesareconsideredtohavecon-tributedtothedivisiblesurplus.
Therearesomephilosophicalandpracticalquestionsindividenddeterminationthatarenotfullyresolved:ShouldadividendclassbebasedoncharacteristicsexistingatissueAreonlycharac-teristicsreliedonforpricingHasaright,suchasapolicyloan,beenexercisedShouldthedividendinterestratebeaportfoliorateoronedevelopedbyaninvestment-yearmethodShouldablockofbusinessmakeapermanentcontributiontoacompany'ssurplusThereislittlegeneralliteraturedevotedtospeci-ficprincipalsandphilosophyofsettingnonguaran-teedelements.
Thesenonguaranteedelementsareanintegralpartofthebasicprocessofdesigning,pricing,andrepricingproducts.
Thedeterminationandredeterminationofthesenonguaranteedelementsmustbedoneinconjunc-tionwithoverallmonitoringofexperienceandtheallocationofexperiencetoblocksofbusiness.
Itisdoneinthecontextofthespecificcompany'sprofit,return,andmarketpositionobjectives.
Incertainjurisdictions,companyboardapprovalandstateinsurancedepartmentnotificationmayberequiredforchangesinnonguaranteedelements.
Changesinnonguaranteedelementscaninthemselveschangetheunderlyingpolicyholderbehavior,thusalteringtheexperienceonwhichthechangeswereproposed.
Balancingthesecon-siderationscreatespracticalconsiderationswhichvarycasebycase.
Thereadingsinthissectionreviewsomegeneralmethodsbeingusedtomeasureandallocateexpe-rienceanddiscusssomespecificapplicationsofthesemethods.
TheNAICModelRegulationonSalesIllustrationsalsoaddressessomeoftheissuesregardingwhatmayormaynotbeusedasthebasisofillustratingnonguaranteedresultsintheU.
S.
(Foradditionalinformation,seethesectiontitledLegislativeandRegulatoryRequirements.
)Winters,RobertC.
"PhilosophicIssuesinDividendDistribution,"TransactionsoftheSocietyofActuariesXXX(1978),p.
125–37.
Thispapersummarizestraditionalactuarialthinkingonindividualpolicydividendsandsomeconcernsthatwerecurrentatthetimeitwaspub-lished,manyofwhichcontinuetoapplytoday.
Itdrawsprimarilyontheframeworkofordinarylifeinsuranceissuedbyamutualcompany.
Specifictopicscoveredincludetheconceptofdividendclass,theeffectsofreservesandnonforfeiturevaluesondividends,terminaldividends,dividendassumptionsandillustrations,earlydividends,permanentcontributionstosurplus,andchangesindividendscales.
Levelofdifficulty:BasicPages:13Gustafson,DaleR.
,Johnston,DavidR.
,Rolland,IanM.
,andWinters,RobertC.
"LifeInsuranceDividendsinTheoryandPractice,"TransactionsoftheSocietyofActuariesXXVI,PartII(1974),p.
D597–D622.
Thispaperisadiscussionofthereport,"Philoso-phiesintheComputationandDisseminationofDividendIllustrations,"preparedbytheSocietyofActuariesCommitteeonCostComparisonsandRelatedIssues.
Conceptsdiscussedincludeequity,theextenttowhichadividendillustrationshouldbeaprojection,whetherdividendinterestratesshouldvaryfornewandoldbusiness,justificationforpayingfirst-yeardividends,andhowcapitalgainsandlossesshouldbehandledinadividendscale.
AspectsofdividendtheoryandpracticeinCanada,theU.
K.
,andtheCaribbeanislandsarehighlightedwheredifferentfromtheU.
S.
Levelofdifficulty:IntermediatePages:25CanadianInstituteofActuaries.
"DividendPracticesandPrinciples,"ProceedingsoftheCanadianInstituteofActuariesXII,No.
1,1980–81,p.
105–24.
ThepanelistscommentonthepositionsoftheAmericanAcademyofActuariesandtheCanadianInstituteofActuariesontheSocietyofActuariesCommitteeonTheoryofDividendsandOtherNon-guaranteedElementsinLifeInsurance'srecom-mendationsondividendpracticesandprinciples.
Differencesofopinionareexpressedontheissuesof:splittingexistingdividendclassesafterissue,directper-policyrecognitionofpolicyloans,theinvestmentgenerationmethodofdeterminingdividendinterestrates,terminationdividends,andthenatureoftheactuarialreportonthedividendscale.
AlsodiscussedaretheCanadianInstituteofActuaries'roleintheareaofdisclosure,whyformalrecommendationsareneededinCanada,andtowhomtheCanadianInstituteofActuaries'promulgatedrecommendationswouldapply.
Levelofdifficulty:BasicPages:20Claire,DonnaR.
,Easton,AlbertE.
,andEhrlich,Selig.
"RepricingtheIn-ForceBookofBusiness,"RecordoftheSocietyofActuaries18,No.
4B(1992),p.
1763–77.
Thepaneldiscussespracticalconsiderationsinrepricingparticipatingwholelife,universallife,andannuities.
Muchofthediscussionofdeter-mininginterestratesforannuitiesalsohasapplicabilitytolifeproducts.
Levelofdifficulty:BasicPages:155Kabele,ThomasG.
"UniversalLifeandIndeterminatePremiumProductsandPolicyholderDividends,"TransactionsoftheSocietyofActuariesXXV(1983),p.
153–247.
Thispaperwaswritteninthecontextofdebatesonfederalincometaxtodemonstratethatuniver-sallifeandindeterminatepremiumproductsaresimilartoparticipatingplans.
Forfederalincometaxpurposes,"dividendsandsimilardistributions"areassertedtoincludeanybenefitorpremiumreductionthatisnotfixedatissue.
Argumentsthatexcessinterestandindeterminatepremiumreductionsarenotdividendsarerebutted.
Thepaperchallengesalternativetaxtreatmentsofexcessinterestcreditsandpremiumreductionsandarguesthat"add-on"features(suchasoutsidebondindexesandadvanceguarantees)donotpre-cludedividendtreatmentfortaxpurposes.
Italsoinvestigatesreserveandpolicyholdertaxques-tions.
Thecontinuingutilityofthepaperanditsdiscussionsisinpresentingarangeofviewpointsontherelationshipbetweendividendsandnonguaranteedelements.
Levelofdifficulty:IntermediatePages:94Boger,Steven,Chapman,AllanL.
,Slaby,EdwardJ.
,andSmith,RogerW.
"RepricingConsiderations—In-ForceBlocksofBusiness,"RecordoftheSocietyofActuaries14,No.
3(1988),p.
1119–38.
Thepaneldiscussestheuseofasset/liabilitymodelsinsettinginterestratestrategiesforinterest-sensitivebusiness.
Considerationisalsogiventothedevelopmentofsurpluschargesforthemanagementofparticipatingsurplus.
Levelofdifficulty:IntermediatePages:19Auger,JamesG.
,Milnes,EstherH.
,Neubeck,GaryF.
,andRosenthal,ElliotA.
;Creswell,DavidL.
,Hartz,ScottS.
,andKunesh,DanielJ.
"MeasuringInterestMargins—Part1—AssetSegmentation,"RecordoftheSocietyofActuaries,16,No.
2(1990),p.
735–52;and16,No.
3(1990),p.
1289–1304.
Thissession,alongwiththeothertwo(Parts2and3)inthethree-partseries,describemethodsthatcanbeusedtomeasureprofitabilityandsetcreditedinterestratesoninterest-sensitive-annuitiesandlifeinsurance.
Levelofdifficulty:IntermediatePages:17and15,respectivelyBorchardt,FrederickM.
,Hartz,ScottS.
,Milnes,EstherH.
,andOgden,SueW.
;Gleeson,ThomasM.
,Kyle,ThomasM.
,Mavrogenes,PeterS.
,andSmith,RogerW.
"MeasuringInterestMargins—Part2—MeasuringInvestmentResults,"RecordoftheSocietyofActuaries16,No.
2(1990),p.
837–856;and16,No.
3(1990),p.
1477–1514.
Thissession(andParts1and3)describemethodsthatcanbeusedtomeasureprofitabilityandsetcreditedinterestratesoninterest-rate-sensitiveannuitiesandlifeinsurance.
Levelofdifficulty:IntermediatePages:19and37,respectivelyCorwin,FredericW.
Jr.
,Deakins,PeterB.
,Elam,CharlesP.
,andPalmer,W.
Randall;Deakins,PeterB.
Rosenthal,LauraB.
,andRouthenstein,AlanJ.
"MeasuringInterestMargins—Part3—MeasuringRequiredInterest,"RecordoftheSocietyofActuaries16,No.
2(1990),p.
919–46;and16,No.
3(1990),p.
1631–62.
Thissession(andParts1and2)describemethodsthatcanbeusedtomeasureprofitabilityandsetcreditedinterestratesoninterest-rate-sensitiveannuitiesandlifeinsurance.
Levelofdifficulty:IntermediatePages:27and31,respectivelyDubois,MichaelE.
,Phillips,ThomasA.
,Stern,LarryN.
,andStreck,LindaS.
;Hancock,RachelM.
,Klein,RonaldL.
,andSnow,Martin.
"RevisitingthePricingofYourInForce,"RecordoftheSocietyofActuaries21,No.
1(1995),p.
43–60and21,No.
2(1995),p.
49–64.
Thepanelistsdescribeseveralinsurers'methodsformonitoringin-forceparticipatingandnonpar-ticipatingbusinessandmakingrepricingdeci-sions.
Thediscussionsincludeapplicablestan-dardsofpractice,evaluatingmortalityexperience,organizingdataandsystemstofacilitaterepricinganalysisandimplementation,andexamplesofpracticalquestionsregardingequityandpotentialfutureexperienceimpactsofin-forcechanges.
Levelofdifficulty:BasicPages:17and15,respectively6Kembler,JamesW.
"DividendPhilosophy,"RecordoftheSocietyofActuaries10,No.
2(1984),p.
779–94.
ThissessiondealswiththeexposuredraftoftherecommendationsoftheSocietyofActuaries'CommitteeonTheoryofDividendsandOtherNon-guaranteedElementsinLifeInsuranceandAnnuities;seenextentryforfinalreport.
Thefocusofdiscussionisactuarialprinciplesandpracticesinconnectionwithindividualcontractscontainingnonguaranteedchargesand/orbene-fits,suchasuniversallifepolicies,indeterminatepremiumpolicies,andexcessinterestcontractsotherthanthoselinkedtoaseparateaccountresultoradefinedindex.
Thecontinuityprinciple(whichwasnotincludedinthefinalreportorstandardofpractice)isdefinedandseveralexam-plesofitsapplicationareincluded.
Theconceptofacaveatemptorpolicyisconsideredaswellaswhatsortofdisclosureshouldberequiredfornonguaranteedelements.
Levelofdifficulty:BasicPages:16"ReportoftheCommitteeonTheoryofDividendsandOtherNon-GuaranteedElementsinLifeInsuranceandAnnuities,"Itasca,Ill:SocietyofActuaries,August1985.
Thisisthefinalreportofthiscommitteeonthesubjectofnonguaranteedelements(otherthandividends)inindividuallifeinsuranceandannu-ities.
ItprovidesadditionalbackgroundonthedevelopmentoftheprinciplescurrentlyfoundinActuarialStandardofPracticeNo.
1.
Thereportstartswiththecommittee'sgeneralapproachtothesubjectandcarriesthroughtotheproposedrecommendations.
Theevolutionoflifeandannu-ityproductswithnonguaranteedelementsandthespecialchallengesofprovidingactuarialadviceontheseproductsarediscussed.
Emphasisisplacedontheimportanceofaplanofoperationsoutliningthecompany's(1)planfordeterminationandredeterminationofnonguaranteedcharges/benefits,(2)operatingpractices(suchasunder-writing,claims,andsoon)thataffectpricingandrepricing,and(3)marketingandprofitobjectivesforthespecificproduct.
Levelofdifficulty:BasicPages:22DividendsandNonguaranteedElementsintheDesignandPricingofLifeInsuranceAtkinson,DavidB.
"IntroductiontoPricingandAssetShares,"SocietyofActuariesStudyNote210-25-95.
Thisstudynoteprovidesacomprehensiveoverviewofthefundamentalsofpricingindividuallifeinsuranceusingassetshares.
Itdiscussesissuesandformulasthatapplytoindividuallifeinsuranceproductsingeneralratherthanfocus-ingonthedetailsofparticularproducts.
Pricingassumptionsandconsiderations,thevarianceofprofits,sensitivitytesting,andotherusesofassetsharesarealsodiscussed.
Levelofdifficulty:BasicPages:109Atkinson,DavidB.
"PricingIndividualLifeInsurance,"SocietyofActuariesStudyNote340-32-89.
Thisstudynotepresentsmoreadvancedaspectsofpricingindividuallifeinsuranceproducts,buildingonStudyNote210-25-95.
Itdiscussestheneedsoflifeinsurancecompaniesthatprofitmarginsmustsatisfyaswellascommonlyusedprofitmeasures.
Annualandnonannualpricingformulasaredevelopedandpossiblerefinementstotheseformulasarepresented.
Levelofdifficulty:IntermediatePages:1227Thepricingoflifeinsuranceproductsdependsontheprojectionofmanyfactors:investmentyields,mortalityrates,lapserates,expenses,taxes,sales,andexpectedprofits.
Itisunlikelythatactualexperiencewillevolveasoriginallyesti-mated.
Theabilitytoreflectemergingexperiencethroughchangesindividendsorothernonguaran-teedexperienceelementsprovidessomeabilitytomaintainrequiredmarginsasactualexperienceemerges,butdoesnoteliminatetheimportanceofsettinginitialfactorsasaccuratelyaspossible.
Marketcompetitivenessalsoplaysaroleinpricing.
Thedevelopmentofacompanypolicytodefinehowdividendsaretobestructuredandequitablydeterminedanddistributediscentraltopricingparticipatingpolicies;suchapolicyshouldalsodefinetherolethatdividendswillplayinthemanagementofthecompany'ssurplus.
Companypolicyonhownonguaranteedelementsotherthandividendswillberedeterminedinthefutureshouldalsobeestablishedatthetimeofinitialpricing.
Thesereferencesgiveabasicbackgroundongeneralpricingconsiderationsandarenotmeanttobeacomprehensivereviewofthesubject.
Crowne,JosephE.
,Dreyer,RobertH.
,Hill,RobertP.
,andJay,BurtonD.
"AdequacyofPricing—Considera-tions,"RecordoftheSocietyofActuaries16,No.
4A(1990),p.
2249–65.
Thisdiscussionfocusesoncertainpricingassumptions(marginsforAIDS,marginalpricing,andpersistency)andproductillustrationvalueswherepricinginadequacieshavebecomeanissue.
Thepaperalsoincludesanexplanationofthevalue-addedmethodofaccounting.
Levelofdifficulty:BasicPages:17Cody,DonaldD.
"TheUnificationofPricing,Valuation,andManagement-BasisFinancialsforParticipatingandNonguaranteedElementContracts,"TransactionsoftheSocietyofActuariesXL,PartI(1988),p.
173–95.
Codydescribesanapproachforunificationofpricing-,valuation-,andmanagement-basisfinancials.
Theproposedunificationisstructuredontheequity-capitalmanagementapproachandonavariationofthelevelreturn-on-equityaccountingmethod.
Pricingisbasedonanideal,generalizeddividend/creditsformula.
Amathe-maticalanalysisisincluded,aswellasadiscus-siononthetreatmentofdividendsandanonrefundablechargefortheuseofcapital.
Levelofdifficulty:AdvancedPages:35Borch,Karl.
"RiskTheory&Serendipity,"Insurance—MathematicsandEconomics,January1986,p.
103–12.
Thispaperpresentsabriefoutlineofastandardequilibriummodelwithwhichequilibriumpremi-umsinaninsurancemarketcanbedetermined.
Examplesofthepracticalapplicationofdifferentmodelsarealsoincluded.
Levelofdifficulty:AdvancedPages:9LegislativeandRegulatoryRequirementsNationalAssociationofInsuranceCommissioners.
Questions&AnswersonLifeIllustrationModelRegulation.
KansasCity,Mo.
:1996.
ThisdocumentmayalsobedownloadedfromtheNAICwebpage:http://www.
naic.
org.
ThisdocumentcontainsunofficialstatementsoftheLifeDisclosureWorkingGroupprovidingguid-anceregardingcertainoftheSalesIllustrationsModelRegulationprovisionsandsomeinsightintotheoriginalintentofthedraftersofthemodel.
AsofSeptember1996,itcontainedresponsestoapproximately100questionsonspecificprovisionsoftheregulation.
Thisdocumentdoesnotcoverdetailregardingtheassumptionstobeusedintheactuarialcertificationsrequiredbytheregulation,whicharecoveredbyActuarialStandardofPracticeNo.
24andrelatedpracticenotes.
Levelofdifficulty:BasicPages:218NAICannualstatementinstructionsrequireaSupplementtoScheduleMofacompany'sannualstatementthatmustrespondtointerrogatoriesconcerningtheprocessofdividenddeterminationandexperiencefactorsandprovideanactuarialopinionastowhetherornotthedividendshavebeendeterminedinaccordancewithactuarialprinciplesandpracticesoftheAmericanAcademyofActuaries.
ASupplementtoExhibit8solicitssimilarinformationconcerningnonguaranteedelementsotherthandividends.
TheNAICrecentlydevelopedaModelRegulationonSalesIllustrations,includingillustrationsofdividendscalesandothernonguaranteedele-ments.
Thislegislationintroducestheconceptoftheillustrationactuary,whomustmakevariouscertificationstothedirectorsofthecompanyandstateinsurancecommissionersregardingthecom-pany'scurrentlyillustratedscales.
NewYorkinsur-ancelawmandatesmaximumlevelsofsurplusNewYorkmutualcompaniesmayretain.
Also,NewYorklawstatesthatpolicyholderdividendsmustbesetequitably.
Anumberofstateshaveformalorinformalrequirementsforfilingorapprovalofindeterminatepremiumsorothernonguaranteedelements.
TheCanadianInsuranceCompaniesAct,whichcameintoeffectJune1,1992,requirescompaniestofileadividendpolicystatementwiththeOfficeoftheSuperintendentofFinancialInstitutions,thefederalsupervisoryagencyforinsurancecompa-nies.
Thislegislationincludesprovisionstoprotecttherightsofparticipatingpolicyholdersinrespectofvariousmattersthatmayaffectthelevelofprof-itsavailableforthepaymentofdividendstosuchpolicyholders.
Thelawalsorequirestheappointedactuarytoconfirmtotheboardthatpolicyholderdividendsproposedtobepaidareinaccordancewiththecompany'sstateddividendpolicyandthattheallocationofinvestmentincomeandexpensestoparticipatingpoliciesisreasonable.
NewYorkInsuranceDepartment.
"GuidelineforSubmissionandApprovalofLifeInsurancePolicieswithProjectedIndeterminateorAdjustablePremiumRatesLessThanorEqualtoMaximumGuaranteedRates,"NewYorkCircularLetter1980-18,1980.
Thisletterlistsanumberofspecificrequirementsforapprovalofindeterminatepremiumpoliciesinthatstate.
Levelofdifficulty:BasicPages:—InsuranceCompaniesAct,CanadaCommunicationsGroup,CatalogNo.
YX3-1991-47,June1,1992.
ThisisthetextofthelawthataffectscompaniesissuinginsurancepoliciesinCanada.
Pertinentsectionsrelatingtoparticipatingbusinessare:165(2)(e);165(4),(5);207(d);331(3)(a);456;457;458;459;460;461;462;463;and464.
Section165isofparticularinterestinthatitrequireseachcompanywritingparticipatingbusinesstoestablishadividendpolicy.
Levelofdifficulty:IntermediatePages:—NationalAssociationofInsuranceCommissioners.
NAICAnnualStatementInstructions,Life,Accident,andHealth.
KansasCity,Mo.
:publishedyearly.
TheseinstructionsdescribetheinterrogatoriesthatmustbeansweredandtheactuarialopinionconcerningpolicyholderdividendsthatmustbesuppliedassupplementstoScheduleMandExhibit8oftheannualstatement.
Theactuarymustdescribethegeneralproceduresandexperi-encefactorsusedtodeterminedividendsandrespondtoanumberofspecificinterrogatoriessetoutintheinstructions.
Also,theactuarymustsignanactuarialopinionstatingthatthedivi-dendshavebeendeterminedinaccordancewithactuarialprinciplesandpracticesoftheAmericanAcademyofActuaries.
Levelofdifficulty:IntermediatePages:6NationalAssociationofInsuranceCommissioners.
NAICLifeInsuranceIllustrationsModelRegulation.
KansasCity,Mo.
:1995.
ThisdocumentsetsouttheNAICrequirementstoregulatesalesillustrations,includingillustrationofthedividendscalefortraditionalparticipatingpolicies.
Theconceptofthe"IllustrationActuary"isintroduced.
TheregulationwasadoptedinDecember1995.
Levelofdifficulty:IntermediatePages:—NewYorkInsuranceDepartment.
"LimitationonAccumulationofSurplusofLifeInsuranceCompanies,"NewYorkInsuranceLaws,Section4219,p.
547.
ThislegislationissomewhatuniquetoNewYorkandsetslimitsonthemaximumlevelofsurplusthatNewYorkmutualcompaniesmayretain.
Levelofdifficulty:IntermediatePages:2NewYorkInsuranceDepartment.
"Policyholder'sParticipationinSurplusofLifeInsuranceCompanies,"NewYorkInsuranceLaws,Section4231,p.
594.
Thistypeoflegislationismorecommonamongthestatesthanthelimitationonaccumulationofsurpluslegislation.
Levelofdifficulty:IntermediatePages:10ProfessionalStandardsofPractice9InboththeU.
S.
andCanada,actuarialstan-dardsofpracticehavebeendevelopedtoprovideprofessionalguidancetoactuariesperformingworkrelatedtodividenddeterminationandillus-trationwithrespecttoparticipatingindividuallifeinsuranceandannuitypolicies.
Thestandardsrequireawrittendividendactuary'sreportandprovideguidanceastoitemsthatshouldbecoveredinsuchareport.
WiththedevelopmentintheU.
S.
ofanewmodelregulationonlifeinsurancesalesillustrations,anewstandardofpracticetoguideactuariesincomplyingwithsuchregulationshasbeendevel-oped.
Thismayeventuallyrequirechangestotheexistingstandardofpracticereferencedabove.
Scenariotestingisbecominganincreasinglyimportantaspectinthevaluationofparticipatingbusinessinordertodeterminetheadequacyofprovisionsforadversedeviationandalsotheimpactofdelaysinreflectingactualexperienceonliabilities.
Aclearlydefinedpolicyfordividendsornonguaranteedelementsisimportanttounder-standhowdividendscaleswillchangeasexperi-encechangesandtheimpactonreserves.
TheProfessionalActuarialSpecialtyGuidetitled"U.
S.
Statutory—FinancialReportingandtheValuationActuary"(I-1-92,Schaumburg,Ill.
:SocietyofActuaries,1992)shouldalsobereviewedforadditionalsourcematerial.
InCanada,theissueofexplicitguidelinesonreservingforparticipatingpolicieshasbeenunderdiscussionformanyyearsandhasproventobedifficulttoresolve.
ActuarialStandardsBoard.
"TheRedetermination(orDetermination)ofNon-GuaranteedChargesand/orBenefitsforLifeInsuranceandAnnuityContracts,"ActuarialStandardofPracticeNo.
1,1986.
Thisstandardcoversconsiderationsinvolvedindeterminingandredeterminingnonguaranteedelementsinindividuallifeinsuranceandannuitypolicies.
Itappliestopolicieswithsuchelements(otherthanvariable,indexed,andparticipatingelements)issuedbyU.
S.
stockandmutuallifecompanies.
Thestandardemphasizestheneedforandcontentsofanactuarialreportdocumentingtheactuary'srecommendations.
Italsodescribestheelementstobecontainedinthecompany'snonguaranteedelementpolicy,whichshouldbeinplacebeforetheactuarymakesrecommendations.
Itdoesnotplacerestrictionsonwhatthatpolicymightbe.
LevelofDifficulty:BasicPages:9ActuarialStandardsBoard.
"DividendDeterminationandIllustrationforParticipatingIndividualLifeInsurancePoliciesandAnnuityContracts,"ActuarialStandardofPracticeNo.
15,Washington,D.
C.
:1985.
Thisstandarddescribesthebasicresponsibilitiesoftheactuaryintheapplicationofactuarialprinciplesandpracticestothedeterminationofdividendsforparticipatingindividuallifeinsur-ancepoliciesandannuitycontracts.
ItappliestodividendsillustratedordistributedundertheprovisionsofparticipatingpoliciesissuedfordeliveryintheU.
S.
bymutualandstocklifeinsur-ancecompaniesandfraternalsocietiesandassoci-ations.
Forastockcompany,italsoappliestotransfersfromanyparticipatingaccounttoanystockholderornonparticipatingaccount.
Levelofdifficulty:IntermediatePages:13CanadianInstituteofActuaries.
Recommendations—DividendDeterminationandIllustrationandExplanatoryNotes,1982.
Recommendationsdescribesthebasicresponsi-bilitiesoftheactuaryintheapplicationofsoundactuarialprinciplesandpracticestothedetermi-nationandillustrationofdividendsunderpartici-patingindividuallifeinsuranceandannuitypoliciesissuedfordeliveryinCanada.
Levelofdifficulty:IntermediatePages:56ActuarialStandardsBoard.
"CompliancewiththeNAICModelRegulationonLifeInsuranceSalesIllustrations,"ActuarialStandardofPracticeNo.
24,Washington,D.
C.
:1995.
ThisstandardprovidesguidancetoactuariesincomplyingwithLifeInsuranceSalesIllustrationsModelRegulations.
Levelofdifficulty:IntermediatePages:21CanadianInstituteofActuaries.
ValuationofParticipatingPolicyLiabilities:ValuationTechniquePaperNo.
10,ExposureDraft,Ottawa,Ontario,August1995.
Thisvaluationtechniquepaperdiscussesthebasicprinciplesforthevaluationofparticipatingpolicyliabilitiesusingthepolicypremiummethod,includingthedeterminationofexpectedexperi-ence,treatmentofdividendsandprovisionforadversedeviations.
Levelofdifficulty:IntermediatePages:1310TheCanadianInstituteofActuariesadoptedastandardforvaluingparticipatingpoliciesinSeptember1996.
Importantly,thisrequiresvaluingallpolicyholderdividends,includingterminaldivi-dends.
ThisstandardwasadoptedinSeptember1996andbecameeffectiveonJanuary1,1997.
ActuarialStandardofPracticeNo.
1,applicabletoU.
S.
business,specifiesthetypesofitemsthatshouldbeconsideredinthedeterminationandredeterminationofnonguaranteedelementsotherthandividends.
Thereiscurrentlynoestablishedregulatoryorprofessionalstandardorprincipleforthesenonparticipatingelementsthatcorrespondstothecontributionprincipleequityrequirementsforparticipatingdividends.
(SeealsothereferencesundertheheadingPhilosophicalandPracticalIssuesonearlyattemptstodevelopa"continuityprinciple.
")However,theactuaryshouldprepareareportdescribingthecompany'scompleteredeter-minationpolicyandpointouthoweachrecom-mendedchangecomplieswithordeviatesfromthatpolicy.
PolicyholderExpectationsandPolicyholderPerspectives"FinalReportoftheTaskForceforResearchonLifeInsuranceSalesIllustrationsundertheAuspicesoftheCommitteeforResearchonSocialConcerns,"TransactionsoftheSocietyofActuaries,1991–92Reports,p.
139–279.
Thisreportprovidesaclear,introductoryexplana-tionofsalesillustrations,theuseofnon-guaranteedelementsinsalesillustrations,andcurrentconcernswiththeillustrationprocess.
Appendixescontainingdefinitionoftermsandsampleillustrationshelpmakethematerialcleartothereader.
Thistopichasreceivedmuchscru-tinyfrominsuranceregulatorsandtheNAICModelRegulationonSalesIllustrationshasbeenoneresult.
Levelofdifficulty:BasicPages:23Keller,JohnW.
"Dividends—IllustrationsVersusHistories,"ProductDevelopmentNews(NewsletteroftheIndividualLifeInsuranceandAnnuityProductDevelopmentSectionoftheSocietyofActuaries),April1990,p.
6.
Thispaperdiscussesaquestionofwhetherdivi-dendillustrationsorhistoriesarebetterindicatorsofacompany'slikelyfuturedividendperformance.
Someofthemostcommonwayscompanieshavedevisedtoenhanceillustrationsarepresented.
Thepapersuggestsbuyersshouldbeurgedtolookcarefullyatdividendhistorytohelpdeter-minehowcompanieshaveperformedinthepastandhowtheyaretreatingtheirolderpolicyowners.
Levelofdifficulty:BasicPages:21311Salesillustrationscanstronglyinfluencepolicy-holders'reasonableexpectationsastothedivi-dendsorothernonguaranteedelementstobeprovidedbytheirpolicies.
Goodsalesillustrationpracticescanbeofconsiderablehelptoapplicantsinunderstandingthenatureofthepoliciestheyareconsideringpurchasing.
Theycanshowhowthepolicyoperates,arangeofperformancepossi-bilities,andhowthepolicywillreacttochangesindividendsornonguaranteedelements.
TherehasbeenmuchconcernintheU.
S.
recentlyaboutinadequatesalesillustrationprac-ticesandtheNAIChasrespondedwithanewLifeInsuranceSalesIllustrationsModelRegulation.
Recognizingthesignificanceofthisissue,theActuarialStandardsBoardconcurrentlydevelopedandadoptedastandardofpracticetoguideactu-ariesinmeetingtheirresponsibilitiesunderthisproposednewregulation.
TherealsohavebeensimilarconcernsinCanadaaboutimpropersalesillustrationprac-tices.
Inresponse,theCanadianInstituteofActuaries,theCanadianLifeandHealthInsuranceAssociation,andtheLifeUnderwritersAssociationofCanadahavejointlydevelopedproposalstoguidesalesillustrationspractice.
UnliketheNAICapproach,theCanadianapproachisnotaregula-toryoneanddoesnotrequirecertificationbyanillustrationactuaryasistheNAICapproach.
TheCanadianapproachisbasedona"sealofapproval"concept.
Illustrationsthatcomplywiththeproposedguidelineswouldbeallowedtocon-tainthewords:ThisillustrationcomplieswithdisclosureguidelinesdevelopedbytheCanadianLife&HealthInsuranceAssociationandtheLifeUnderwritersAssociationofCanada.
TheprogressoftheCanadianproposalshasbeenslowandtheoutcomeissomewhatuncertain;deliberationsareongoing.
Inthemeantime,weareseeingtheemer-genceof"dutyofcare"requirementsoninsurersattheprovincialregulatorylevel.
Theserequireappropriatedutyofcareintheemploymentandtrainingofagentsandsalesrepresentatives.
Anagents'codeofethicsisunderdevelopment.
Fromanotherperspective,theexpectationsbypolicyholders,createdbyconsistentdividendimprovementsfromthemid-1940sthroughthemid-1980s,thatdividendswillcontinuetoincreasefromoneyeartothenextwithoutfailcanhaveanimportantinfluenceonthesettingandchangingofdividendscales.
Whiledividendscalereductionshavebecomemorecommoninrecentyearsduetodeclininginvestmentreturns,policy-holdersoftenreactinconsternationtoareductioninthedividendscale.
Theirqueriescanresultinconsiderableaddi-tionaladministrativework.
Companiesthustendtoavoidmakingminorreductionsindividendscalesortomoderatethemincertainwayssoastoavoidthepolicyholders'adversereactions.
SeealsothesectionstitledLegislativeandRegulatoryRequirementsandProfessionalStandardsofPractice.
Turner,CatherineR.
"LifeInsuranceIllustrations:TheProblemortheSolution"JournaloftheAmericanSocietyofCLU&ChFC,BrynMawr,Pa.
:March1995,p.
46–50.
Thisarticlediscusseshowtousetheillustrationsavailabletodaytodispelmuchofthepublicmis-understandingoflifeinsurance.
Areasneedingfurtherresearchandimprovementarealsoidentified.
Levelofdifficulty:BasicPages:6Bieluch,PhilipJ.
,Greving,RobertC.
,Guinn,PatriciaL.
,andSpano,AnthonyC.
"AreCurrentProductIllustrationsSupportable"RecordoftheSocietyofActuaries14,No.
2(1988),p.
757–74.
Thisdiscussionoccurredastheimpactofinterestanddividendratedeclinesonpoliciesissuedinthehighinterestenvironmentoftheearly1980swasjustbeingfelt.
Itcoversthetypesofperfor-mancecomparisonscommonlymadeusingillustrations,thevariouspossibleillustrationrestrictionsbeingdiscussedin1988,andtheactuary'sprofessionalresponsibilityregardingillustrations.
The"rangeconcept,"whichwouldhavepermittedillustrationsathigherthancurrentdividendscales,wasneveradopted.
TheNAICModelRegulationonLifeInsuranceIllustrations,adoptedDecember1995,wastheculminationofthepotentialregulatorychangesbeingdiscussedinthispanel.
Levelofdifficulty:BasicPages:18AmericanSocietyofCLU&ChFC.
IntroductiontotheLifeInsuranceIllustrationQuestionnaire(IQ)andLifeInsuranceIllustrationQuestionnaire.
BrynMawr,Pa.
:1996.
ThisquestionnairewasdesignedbytheCLUsocietytohelpcompanieseducateagentsonthemethodologyandassumptionsunderlyinglifeinsuranceillustrations.
Manycompaniesusetheforminagenttrainingandmaketheirresponsesavailableonrequesttopotentialclients.
Theques-tionsaresimilarto,butmoredetailedthan,theannualstatementsupplementalinterrogatoriestoExhibit8andScheduleM.
Aswiththoseinter-rogatories,someofthesequestionsmaynolongerbeapplicableafterstatesadoptthenewlifeinsur-anceillustrationsmodelregulation.
However,manyoftheprinciplesandareasfordifferenceswillcontinuetoberelevant.
Levelofdifficulty:BasicPages:8CanadianInstituteofActuaries.
"DisclosureGuidelinesForSalesIllustrations,"CIAPublicStatementproducedbytheJointCanadianInstituteofActuaries,CanadianLifeandHealthInsuranceAssociation,LifeUnderwritersAssociationofCanadaTaskForce,January1995.
AvailablefromtheCanadianInstituteofActuaries.
TheCanadianInstituteofActuarieshasofficiallyendorsedtheprinciplesoftheguidelinesandencouragestheiruse.
However,theInstitutedecideditwouldbeinappropriateforthe"sealofapproval"onindividualsalesillustrationstorefertotheCanadianInstituteofActuariesduetoconcernsaboutthelackofcontroloversalesillus-trationsoftwarebyactuariesandtorelatedproblemsinapplyingtheInstitute'sdisciplinaryproceduresundersuchcircumstances.
Levelofdifficulty:BasicPages:10Easton,AlbertE.
"WieldingtheKnifewithGrace:LifeInsuranceDividendsinthe1990s,"ContingenciesMay/June1993,p.
25–9.
Thisisanexcellentintroductiontodividend-settingpolicy.
Thearticlediscussesthemajorfac-torsaffectingdividendscalesinthelate1980sandintothe1990s,includinginterestratetrends,mortalitytrends,andfederalincometaxes.
Itdefinesintergenerationalequityandoffersreasonsformaintainingequityinthedividendscale.
Finally,itdiscusseswaystocommunicatedividendscalechangestomanagement.
Levelofdifficulty:BasicPages:4A.
M.
BestCo.
,Inc.
"10-and20-YearWholeLifeDividendComparisons,"Best'sPolicyReportsHistoricalSupplement,Oldwick,N.
J.
:publishedannuallyinMay.
Thesebookscoverpoliciesissuedbyover100companiesandcomparethedividendscaleillus-tratedatpointofissuewiththescaleactuallypaidovertime.
Thecomparisonisdoneforpoliciesissued10and20yearsago.
Thebooksalsoincludeactualsurrendervalueandcreditingratehistoriesforuniversallifepolicies.
SummariesaregenerallyprovidedinBest'sReview.
Levelofdifficulty:BasicPages:8012Harding,JohnH.
,Press,Alan,Soane,BernardA.
,andYau,JosephW.
S.
"IllustrationWars,"RecordoftheSocietyofActuaries15,No.
3B(1989),p.
1413–26.
Salesillustrationsanduseofdividendsinillustra-tionsofparticipatingpoliciesarethefocusofthissession.
Threespeakersparticipatedintheses-sion:anactuarywhospokeofthedifficultyinmaintainingdividendinterestcreditsinaperiodofdeclininginterest;anagentwithastocklifeinsur-ancecompanywhodescribedsalesillustrationsofuniversallife;andageneralagentforamutuallifeinsurancecompanywhotalkedaboutthepracticalandethicalimplicationsofsellinglifeinsurancepolicieswheresalesillustrationscannotbemaintainedovertime.
Levelofdifficulty:IntermediatePages:14PublishingandOrderingInformationPhotocopiesofSocietyofActuariespublications(SectionNewsletters,TransactionsoftheSocietyofActuaries,andRecordoftheSocietyofActuaries)canbeobtainedbycallingorwriting:AssistantLibrarianSocietyofActuaries475N.
MartingaleRoad,Suite800Schaumburg,IL60173-2226Tel.
:(847)706-3538Fax:(847)706-3599e-mail:soconnor@soa.
orgSocietyofActuariespublications(StudyNotesandbooks)canbepurchasedbycallingorwriting:BooksDepartmentSocietyofActuaries475N.
MartingaleRoad,Suite800Schaumburg,IL60173-2226Tel.
:(847)706-3526Fax:(847)706-3599e-mail:ccimo@soa.
orgFornon-SOApublications,pleasecontactthepublishersdirectlyforbooksorreprintsofarticles.
Best'sReview—Life/HealthEditionA.
M.
BestCo.
,Inc.
AmbestRoadOldwick,NJ08858Tel.
:(908)439-2200Fax:(908)439-3363ContingenciesActuarialStandardsBoardc/oAmericanAcademyofActuaries1100SeventeenthStreet,NW,7thFloorWashington,DC20036-4601Tel.
:(202)223-8196Fax:(202)872-1948CanadaCommunicationsGroupPublishingOttawa,OntarioK1A0S9CanadaTel.
:(613)956-4800Fax:(613)994-1498CanadianInstituteofActuaries360AlbertStreet,Suite820Ottawa,OntarioK1R7X7CanadaTel.
:(613)236-8196,Ext.
114Fax:(613)233-4552Insurance—Mathematics&EconomicsElsevierScienceB.
V.
CustomerSupportDepartmentP.
O.
Box2111000AEAmsterdam,TheNetherlandsFax:(3120)485-3432JournalofAmericanSocietyofCLU&ChFC270S.
BrynMawrAvenueBrynMawr,PA19010-2195Tel.
:(610)526-2524NationalAssociationofInsuranceCommissionersBookDepartmentP.
O.
Box263,Dept.
42KansasCity,MO64193-0042Tel.
:(816)374-7259Fax:(816)471-7004OfficeofSuperintendentofFinancialInstitutions255AlbertStreetOttawa,OntarioK1A0H2CanadaTel.
:(613)990-7788Prentice-HallSimonSchusterOrderProcessingCenterP.
O.
Box11071DesMoines,IA50336-1071Tel.
:`(800)947-7700or(800)374-1200Fax:(515)284-26071314ThisProfessionalActuarialSpecialtyGuidewasdevelopedundertheauspicesoftheLifeInsuranceSpecialtyGuidesCommitteeby:BillWilson,EditorCathyTurner,EditorBarryT.
GateyEleanorHartleyBillHezzlewoodBarbaraLawsonBarbaraLuddyandreviewedby:JosephFafianKenMcFarquharMartinSnow

NameCheap域名转入优惠再次来袭 搜罗今年到期域名续费

在上个月的时候也有记录到 NameCheap 域名注册商有发布域名转入促销活动的,那时候我也有帮助自己和公司的客户通过域名转入到NC服务商这样可以实现省钱续费的目的。上个月续费转入的时候是选择9月和10月份到期的域名,这不还有几个域名年底到期的,正好看到NameCheap商家再次发布转入优惠,所以打算把剩下的还有几个看看一并转入进来。活动截止到9月20日,如果我们需要转入域名的话可以准备起来。 N...

NameCheap优惠活动 新注册域名38元

今天上午有网友在群里聊到是不是有新注册域名的海外域名商家的优惠活动。如果我们并非一定要在国外注册域名的话,最近年中促销期间,国内的服务商优惠力度还是比较大的,以前我们可能较多选择海外域名商家注册域名在于海外商家便宜,如今这几年国内的商家价格也不贵的。比如在前一段时间有分享到几个商家的年中活动:1、DNSPOD域名欢购活动 - 提供域名抢购活动、DNS解析折扣、SSL证书活动2、难得再次关注新网商家...

10GBIZ(月$2.36 ), 香港和洛杉矶CN2 GIA

10GBIZ服务商经常有看到隔壁的一些博客分享内容,我翻看网站看之前有记录过一篇,只不过由于服务商是2020年新成立的所以分享内容比较谨慎。这不至今已经有将近两年的服务商而且云服务产品也比较丰富,目前有看到10GBIZ服务商有提供香港、美国洛杉矶等多机房的云服务器、独立服务器和站群服务器。其中比较吸引到我们用户的是亚洲节点的包括香港、日本等七星级网络服务。具体我们看看相关的配置和线路产品。第一、香...

7788k.com为你推荐
中老铁路地铁路是怎么造的?是钻地吗?firetrap你们知道的有多少运动品牌的服饰?刘祚天还有DJ网么?比肩工场大运比肩主事,运行长生地是什么意思?22zizi.comwww 地址 didi22怎么打不开了,还有好看的吗>comwww.yahoo.com.hk香港的常用网站8090lu.com8090向前冲电影 8090向前冲清晰版 8090向前冲在线观看 8090向前冲播放 8090向前冲视频下载地址??www.mywife.ccmywife哪部最经典sesehu.comwww.hu338.com 怎么看不到啊www.45gtv.com登录农行网银首页www.abchina.com,
重庆网站空间 德国vps 如何查询ip地址 赵容 美国主机评测 美国主机代购 win8升级win10正式版 一元域名 电子邮件服务器 中国电信宽带测速网 网站在线扫描 创建邮箱 秒杀品 东莞主机托管 小夜博客 腾讯云平台 蓝队云 hosting24 .htaccess godaddyssl 更多