Surrender Charge

Because of the multitude of problems in any application of a prospective method, a retrospective requirement was adopted.

It was felt that the most important relationship to the policyholder would be that between the account value and the cash value.

This amount, the surrender charge, is the quantity regulated by the Model <Universal Life Model Regulation - NAIC>.

1984 - NAIC UPDATE, Society of Actuaries - 24p