Reserves

2015-3 Whole Life CRVM Reserves 6-203
  • Our concern relates to the lack of clarity as to the meaning of this paragraph. The words "traditional plan" are particularly troubling. Does this mean a universal life policy, a whole life policy, or a term policy?
  • We are concerned that the vagueness of this wording will once again lead to different interpretations by the reader.
  • Also, we are concerned that this wording may be an attempt to hold the same reserves for universal life insurance and whole life insurance, which we strongly believe is incorrect.
  • Universal life and whole life are entirely different product structures, with different products features, and consumers buy these products for different reasons and purposes.
  • Therefore, reserves for these products should be different.

2004-4, NAIC Proc

2016-1 20 year Level term 6-335

1984-1, NAIC Proceedings, Reserves Examples

2015-3, NAIC Proceedings - 6-203

Appendix I – Whole Life Net Single Premium Comparison

CRVM Net Single Premiums

 

2016-1, NAIC Proceedings - 6-335
20 Year Level Premium Term Life Insurance (Cont.
Terminal Reserves for Single Cells — Face Amount

We’re going to actually go through and calculate reserves in detail for this product.  The product is a fairly standard product.

  • It has a $12.50 per month load.
  • It has a guaranteed interest rate of 4 percent.
  • It’s a 2001 CSO product, and the current costs of insurance (COIs) are reverse select and ultimate COIs.
  • With the COIs, the first 20 years are 90 percent of the guarantees, and then for years 21 and after they are 50 percent.

2005 - Statutory Financial Reporting for Universal Life, Jeffrey A. Beckley, Society of Actuaries

 1985 - New Products Accounting Alternatives -Society of Actuaries

than we used to on whole life insurance! MR. RALPH H. GOEBEL: Vanishing premium whole life is often called ... the benefit reserve being something like a statutory reserve and the deferred acquisition expense item ...

asset adequacy approach
Stochastic
Linear
Principles-based
Commutation Functions

Asset Shares
Reserve Factors
Pricing
Valuation

Benefit Reserves
Natural Reserves
Policy Reserves
Terminal Reserves