Description: This session is about the Report on Actuarial Principles and Practical Problems with Regard to Nonforfeiture Requirements but it also includes a summary of written responses to the Report, developments on the regulatory scene, and recent work of other committees studying nonforfeiture or related areas. From the 1976 Record, Vol. 2, No. 3.

Description: Key considerations when modeling reinsurance to calculate reserves under PBR as well as a case study examining the impact of reinsurance structures on reserves.

Description: The article summarizes results of a Milliman survey per the title. These products comprise about 40% of the total individual life market, and the survey covers a range of topics on these plans, which should be of interest to a large portion of the life industry.

Description: This paper describes the Federal Income Tax FIT treatment of reserves historically. Then it describes Principles-Based Reserves PBR. Finally, it discusses issues in the treatment of PBR under FIT.

Description: This paper is presented as a means of explaining, in greater detail than was appropriate in its formal report, the methods used in the construction of the new standard ordinary mortality table, temporarily designated as Mortality Table X, and the corresponding experience mortality table, temporarily designated as Mortality Table X.

Description: This 1977 panel discussion focused on the implications of proposed revisions of the standard valuation and nonforfeiture laws. Areas discussed included: 1. A regulator's perspective 2. Applications to Life and Annuities 3. applications to Pensions

Description: The paper explores developments through 2006 in the application of market-consistent concepts to the measurement of fair values of liabilities for financial reporting purposes. A set of criteria is presented that should be useful in the evaluation of proposed fair value measurement approaches where inputs based on prices observed in an active market with reliable transaction prices are not available. Based on these criteria, one approach is examined that might serve as a basis for the fair value measurement of the liability of life insurance contracts and other financial instruments issued by insurers.

Description: This is a discussion of the paper, 'The Effect of Varying Interest Rates' by Charles H. Connelly, involving the use of two interest rates, varying by duration, for valuation.

Description: A change in the way in which statutory life insurance and annuity reserves are determined in the United States is heading toward adoption. Currently, the Actuarial Opinion and Memorandum Regulation AOMR combines formulaic factor-based minimum reserves with reserve adequacy testing. The American Academy of Actuaries Academy is working with the National Association of Insurance Commissioners NAIC to finalize the basic framework of a principles-based reserve PBR methodology, based on a gross premium valuation, for life insurance products. The NAIC Life and Health Actuarial Task Force LHATF has also been considering Actuarial Guideline VACARVM that would introduce a PBR method for the valuation of variable annuity contracts.

Description: Milliman, Inc. Milliman was retained by the Society of Actuaries SOA to perform certain actuarial analyses with respect to the Z-Factor methodology under a principles-based approach PBA to statutory reserve and capital. Under PBA, the Z-Factor is a measure of margin in excess of the best estimate assumptions embedded in the statutory reserves of a life insurance product or block of business.