Description: An increasingly popular tool in estate planning is the Joint Life policy payable upon the second death. The design and pricing of this policy is influenced significantly by cash value and reserve requirements. This article discusses two methods for calculating these values.

Description: Summary of Part II of the survey of Appointed Actuaries, sponsored by the American Academy of Actuaries Committee on Life Insurance Financia1 Reporting and the Society of Actuaries Financial Reporting Section, which asked appointed actuary various questions on methodology and assumptions employed for asset adequacy testing.

Description: As a result of over 30 states enacting Legislation permitting the use of an interest assumption as high as 4% in determining life insurance reserves, the Society of Actuaries Committee on Preparation and Publication of Monetary Values conducted a survey of insurance companies, consulting actuaries, and regulatory authorities to determine whether this change in legal valuation standards would create a need for the publication of 1958 CSO Monetary Values volumes at 4% interest. After a review of the results of this survey and a study of the computing and printing costs of such a project, the Society’s Board of Governors has authorized the Committee to solicit orders for such volumes.

Description: This article makes a case for implementation of a mortality fluctuation reserve in GAAP accounting.

Description: August Zilmer 1831-1893, a Prussian actuary best known for the development of preliminary term valuation, also made some observations on life insurance accounting that seem quite contemporary. Zillmer also wrote the first comprehensive German actuarial mathematics text in almost a century.

Description: This article announces the availability of The Valuation Actuary Handbook. The purpose of this handbook is to provide assistance to all actuaries who need to use cash-flow testing to validate the appropriateness of reserves. It is a “how to” manual that contains the most up-to-date considerations and techniques for the valuation process.

Description: This article describes the mortality tables that the Board of Governors of the Society of Actuaries is recommending to the NAIC as successors to the 1958 CSO Table

Description: This article discusses the calculation of mean reserves in certain cases where terminal reserves are negative and proposes a minimum reserve formula which produces adequate mean reserves in all cases.

Description: The author explores reasons why blocks of business may become legacy blocks and discusses ways to decrease the likelihood of legacy blocks in the future.

Description: The Occidental Life Insurance Company position paper: Mortality Fluctuation Reserve for Stock Life Insurance Companies is reproduced. The methods chosen are considered to conform to the Audit Guide for Stock Life Insurance Companies issued by the AICPA in December, 1972.