Hello everybody,
I have 4 questions related to Actuarial Guideline 38, more specifically questions related to the valuation of UL policies with secondary guarantees.
-Policies that are subject to section 8C of AG38 (UL policies w/ sec. guarantees issued between 01/01/2007 and 12/31/2012) must be supported by an asset adequacy analysis specific to these policies. Why is that? It seems arbitrary to me...
-I don't understand the difference between step 2 for 8A and step 2 for 8B.
For 8A, we have : For purposes of applying Sections 7B and 7C of Model 830, the specified premiums are the minimum gross premiums derived in step one.
For 8B, we have : For purposes of applying Sections 7B and 7C of Model 830, the specified premiums are the minimum gross premiums derived in step one. Consistent with Model 830, the remaining steps in this guideline should be calculated on a segmented basis, using the segments that Model 830 defines for the product. Therefore, in the remaining steps, the term ''fully fund the guarantee'' should be interpreted to mean fully funding the guarantee to the end of each possible segment. The term ''remainder of the secondary guarantee period'' should be interpreted to mean the remainder of each possible segment. The total reserve should equal the greatest of all possible segmented reserves.
I thought the additional text for 8B was already implied by Sections 7B and 7C of Model 830? What is the distinction to be made?
-In section 8E of AG38, it is explicitly stated that the step 4 prefunding ratio can be negative, but no less than -1. For Sections 8A-8B-8C-8D, there is no such comment. Does this mean that for these sections the prefunding ratio can be negative and less than -1, or is it implied that it needs to be floored at 0?
-Is there any available documentation on the way the various ''iterations'' of sections pertaining to the valuation of UL policies with secondary guarantees in AG38 were created? It seems to me that the issue dates used to separate 8A from 8B and from 8C and ... were arbitrarily chosen.
Thank you!
I have 4 questions related to Actuarial Guideline 38, more specifically questions related to the valuation of UL policies with secondary guarantees.
-Policies that are subject to section 8C of AG38 (UL policies w/ sec. guarantees issued between 01/01/2007 and 12/31/2012) must be supported by an asset adequacy analysis specific to these policies. Why is that? It seems arbitrary to me...
-I don't understand the difference between step 2 for 8A and step 2 for 8B.
For 8A, we have : For purposes of applying Sections 7B and 7C of Model 830, the specified premiums are the minimum gross premiums derived in step one.
For 8B, we have : For purposes of applying Sections 7B and 7C of Model 830, the specified premiums are the minimum gross premiums derived in step one. Consistent with Model 830, the remaining steps in this guideline should be calculated on a segmented basis, using the segments that Model 830 defines for the product. Therefore, in the remaining steps, the term ''fully fund the guarantee'' should be interpreted to mean fully funding the guarantee to the end of each possible segment. The term ''remainder of the secondary guarantee period'' should be interpreted to mean the remainder of each possible segment. The total reserve should equal the greatest of all possible segmented reserves.
I thought the additional text for 8B was already implied by Sections 7B and 7C of Model 830? What is the distinction to be made?
-In section 8E of AG38, it is explicitly stated that the step 4 prefunding ratio can be negative, but no less than -1. For Sections 8A-8B-8C-8D, there is no such comment. Does this mean that for these sections the prefunding ratio can be negative and less than -1, or is it implied that it needs to be floored at 0?
-Is there any available documentation on the way the various ''iterations'' of sections pertaining to the valuation of UL policies with secondary guarantees in AG38 were created? It seems to me that the issue dates used to separate 8A from 8B and from 8C and ... were arbitrarily chosen.
Thank you!
Actuarial Guideline 38 Questions
0 commentaires:
Enregistrer un commentaire