Valuation and Non-forfeiture


  • History of the Standard Valuation and Nonforfeiture Laws Since
    NAIC Adoption in 1942, by Dan Case and Grace Dillingham, ALIA

1975-1, NAIC Proceedings

  • Trowbridge Committee on Valuation and Related Matters


  • The opinion that nonforfeiture benefits should be mandated was not completely unanimous among the Task Force.
  • Following is a presentation by Shane Chalke to a group of economists at The Institute For Humane Studies at George Mason University on June 29, which presents the opposing view.

1989-1, NAIC Proceedings

  • 1980 - New and Proposed Valuation and Nonforfeiture Standards for Individual Insurance, Society of Actuaries - 16p
  • ... referred to the Report of the Committee on Valuation and Related Problems. In that report, the Trowbridge Committee identified three categories of hazards which may impair the financial health of the insurance enterprise. <C1, C2, C3>
  • The report of the committee can be read by the members in Volume 5, Number 1 of the Record of the Society of Actuaries.

1981 - EFFECTIVE USE OF CAPITAL, Society of Actuaries - 24p

14.4 Universal Life Insurance Model Regulation

  • Flexible premium products introduce special valuation problems using traditional methods in that some assumption as to future premiums is required.
  • The typical "present value of future benefits less the present value of future net premiums" formula is challenging to apply to flexible premium universal life policies, since neither "future premiums" nor "future benefits" are known for any particular policy.  (p323)

2018 - Statutory Valuation of Individual Life and Annuity Contracts | 5th Edition -- Claire, Lombardi and Summers