EAR - Enrolled Actuaries Report
- actuary.org/content/enrolled-actuaries-report
- ear_198207
- ear_198304
- 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 - Enrolled Actuaries Report
- [Bonk: Bad Link - Can't find]
- 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 .
- 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.