Reserves

2015-3 Whole Life CRVM Reserves 6-203
  • 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
2016-1 20 year Level term 6-335
  • 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

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

  • asset adequacy approach
  • Stochastic
  • Linear
  • Principles-based
  • Commutation Functions
  • Asset Shares
  • Reserve Factors
  • Pricing
  • Valuation
  • 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 ...
1985 - New Products Accounting Alternatives, Society of Actuaries
  • Finally, effective the first of this year, the California Department imposed new requirements for universal life (UL) reserves.
  • For a company to which these requirements are applicable, and assuming it opt's for the Califomia method, things are even more complicated, because statutory reserves are farther away from tax reserves.
  • Of course, the results could be even worse if, instead of the California method, the company used reserve interest rates equal to the fund accumulation rate, which is the other option.

--  MARK A. TULLIS

1992 - STRATEGIC PRODUCT DEVELOPMENT, Society of Actuaries - 36p