Description: This paper addresses the classification of products according to their accounting standards: SFAS 60 for traditional products, SFAS 97 for interest sensitive products, and SOP 95-1 for participating products. In particular, the question of which products should be classified under the Statement of Position will be addressed. In addition, it will be shown that if a product's dividend formula passes on to the policyholder significantly less than a full asset share an over-reserving problem will occur if the Statement of Position is used as the accounting system.

Description: My first child, Natanel, was born shortly after I passed Exam 135. I learned to work and study in the sleep-deprived environment that all new parents are familiar with. The main trick was to master concentrating with the baby around. When I was home alone with the baby, I picked him up and walked around while reading my study notes, or he slept on my lap as I did sample problems.