GAAP LDTI regulatory changes are upon us, and everybody is thinking about the impacts. Now is the perfect time for a refresher on U.S. reserving principles for universal life insurance products.
Universal life insurance was introduced in the early 1980s to offer policyholders flexibility over traditional products. Over time, the universal life contract design has evolved as insurers add product features to meet consumer demands, including persistency bonuses, secondary guarantees, and equity market participation via indexed and variable universal life. As the product has evolved, new reserving regulations and guidelines have emerged for these new features.
This seminar opens with a review of the basic product design as a building block for reserving concepts before exploring the latest product designs and statutory, tax, and GAAP accounting regulations. The 2019 program will cover statutory and tax financial reporting, including the PBR Net Premium Reserve and 2017 tax reform changes, and GAAP reporting, including a comparison of current GAAP methods and calculations to GAAP LDTI.
Course materials, consisting of a set of presentation slides and spreadsheet files, will be distributed via email the week before the class. All topics, including GAAP LDTI, will be illustrated with comprehensive worksheet examples that are made available to all participants. Class participants are encouraged to bring laptops or tablets to dive into the spreadsheet examples along with the presenters.
At the end of this seminar, participants will understand key statutory, tax, and GAAP reserving principles for Fixed Account UL, UL with Secondary Guarantees (ULSG), Variable UL (VUL) and Indexed Universal Life (IUL); the ULSG VM-20 Net Premium Reserve calculation and basics of the exclusion tests and modeled reserves; the differences between current GAAP and GAAP LDTI; the impact of reinsurance on reserves; and reserve calculations that are presented in sample spreadsheets. The course will cover the basics of how GAAP is changing with the introduction of GAAP LDTI for universal life insurance products.
Registration is open to all. PolySystems has specifically designed this seminar to demonstrate how to apply the fundamental principles of reserving to the practical, on-the-job demands of statutory, tax and GAAP financial reporting. The concentrated syllabus and classroom style atmosphere of this seminar provides an environment in which new students and senior management working as actuaries and other professionals will expand their knowledge and learn from actuaries with broad and deep experience in valuation processes.
Level of Difficulty
The seminar is designed for participants with all levels of experience.
Marianne Clifford, FSA, MAAA, CERA, is a Manager of Actuarial Services in PolySystems Chicago office and has more than 20 years of experience in the life insurance industry, mainly in financial reporting. Marianne works on PolySystems production team supporting life and annuity clients with project implementation and actuarial consulting. She previously worked at two stock life insurance companies and a consulting firm.
Lisa Nurse, ASA, MAAA, is a Manager of Actuarial Services in PolySystems New Jersey office and has more than 30 years of experience in the insurance industry. Lisa spent the first 15 years of her career at a mid-size insurance company where she worked in product development, compliance, and implementation of universal and traditional life insurance as well as deferred annuities. As a manager on PolySystems production team, Lisa plays a critical role in developing valuation and projection models for clients. She has been part of the SOA Reserves Seminar faculty for the last 10 years.