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