Description: Summary of recent changes to IRS Section 7702 Interest Rates, and how it will impact the design of life insurance products in the future.

Description: This is the first of two articles discussing the model laws governing minimum reserves and non-forfeiture values that the NAIC adopted in December 1980. The author, Chairman of the NAIC Technical Task Force on Valuation and Nonforfeiture Value Regulation, in this first article describes the objectives of the revision, which include updating assumptions, increasing flexibility, and improving the ability to deal with new types of products, the cooperative effort entailed, the actuary’s role and responsibilities in doing business under the new law, and the financial impact.

Description: Discussion of private letter tax rulings on the definition of Cash Surrender Value for purposes of interpreting the definition of life insurance for the policyholder's taxation of the contracts.

Description: Article Disparate Origins Of Life And Non-Life Insurances by Beard in The Actuary, February 1979, Volume 13, Number 2

Description: The following commentary, after highlighting the strong linkage that currently exists between valuation reserves and nonforfeiture value requirements, discusses the origins of this relationship. It is concluded that this linkage is undesirable and should be severed. Editor’s Note: This report was prepared for use by the Committee on Non-forfeiture Values. Mr. Gardner is Vice Chairman of the Committee.

Description: Feature article discussing the Life Settlements business: recent growth, pricing, and future of the business.

Description: Background information on the calculation of the statutory valuation and nonforfeiture maximum interest rates and a brief discussion on the effect that changing interest rates will have on some typical life insurance products.

Description: An article from The Actuary that discusses the new non-forfeiture value. The secondary market for life insurance is redefining the way policies are valued. Paradign shifts don't occur overnight. Yet, somewhere along the line, there comes a convergence of factors that makes significant change inevitable. With regard to the secondary market for life insurance, this tipping point is already in the rear-view mirror.

Description: The author notes “the last major change in the Valuation and Non-forfeiture Laws occurred during the 1940's when the work of the Guertin Committee resulted in the adoption by the National Association of Insurance Commissioners NAIC of the Standard Valuation and Non-forfeiture Laws. While there have been a number of amendments to these laws since their adoption, both insurance department and company actuaries have concluded that there is need for a general overhaul of these standard laws to make them more responsive to today's business and regulatory needs.” The article goes on to discuss recent developments, recommendations, and legislative action, including the work of the Society of Actuaries Special Committee on Valuation and Non-forfeiture Laws, and the NAIC Technical Task Force.

Description: This article is a detailed review and discussion of “The Report on Actuarial Principles and Practical Problems with Regard to Non-forfeiture Requirements, Society of Actuaries, January, 1976.” The author of the article notes that It is an important report which should be read by all members of the Society irrespective of their professional affiliations, and in its present form the report is primarily an exposure draft and the Committee will therefore, welcome comments as to its content and recommendations prior to the discussion of the report scheduled for the Houston and Chicago SOA meetings.