Description: Gross premium calculation methods may be arbitrarily separated into: a- Type 1 methods those which initially have commissions and other per cent of premium expenses in the denominator and b- Type 2 methods those which initially have commissions and other per cent of premium expenses in the numerator. The traditional Type 1 methods directly calculate the gross premium. The purpose of this paper is: 1. to present a Type 1 method of gross premium calculation which does the following: a Incorporates the cost of reinsurance into the gross premium calculation and may be shown as a level annual cost over the gross premium calculation period. b Calculates the effect on profit margins of a change in the retention limit without redoing the original calculation. c Calculates the premiums needed to break even e.g., amortize the initial investment in surplus at the end of each policy year as a by-product. d Calculates the profit or loss generated in each policy year or over any number of policy years for any gross premium without redoing the original calculation or first using a trial gross premium. e Directly solves for the gross premium that will produce any specified profit over any number of policy years without redoing the original calculation or first using a trial gross premium. f Directly solves for the premium that will produce a specified yield on surplus invested in new business by a flexible technique not first involving the use of the renewal net premium or any other preliminary gross premium. 2. to provide a mathematical definition of a financially meaningful average policy size which recognizes the cost of reinsurance. 3. to provide for mathematical definitions of common measures of profit, and the mathematical relationships between them. 4. To establish formulas expressing the effect of changes in various assumptions used in the gross premium calculation as a lev

Description: This paper presents a short method of calculating, without approximation, substandard annual extra premiums based on the standard net amount at risk. The method proposed in this paper, is by means of specially constructed auxiliary commutation columns, eliminating the need for any summation, and producing exact values of any extra premiums by relatively simple formulas. A mathematical proof of the methodology is provided.

Description: This is a discussion of the paper, A General Method of Calculating Experience Net Extra Premiums Based on the Standard Net Amount at Risk by Walter Shur.

Description: This paper develops a method of developing and pricing life insurance based on game theory. The interests of the agent, company and insurance prospect are taken into account. From Transactions of Society of Actuaries 1968, Vol. 20, Pt. 1, No. 56 AB.

Description: This is a discussion of the paper published by Charles A. Ormsby titled, 'The Cost to Reinsure Individual Life Insurance Policies'. Discussion includes: 1. Given that reinsured business has higher mortality than non-reinsured business, why would companies issue it, 2. Suggestion that when costs of reinsurance are considered, reserves should be substituted for cash values to determine the 'statement costs', 3. Cost of reinsurance for a mutual company.

Description: This paper presents the application of the asset share technique of pricing to Home Equity Line of Credit insurance. The paper's objective is to provide useful tools when developing a new HELOC product including projections for marketing and underwriting, distinctions between desirable and undesirable product design features, and development of premium rate structures. From Actuarial Research Clearing House 1990, VOL. 2

Description: These are responses to Richard Ziock's work, Gross Premiums for Term Insurance with Varying Benefits and Premiums.

Description: This paper develops a new method of determining long-range interest rate assumptions. Followed by discussion papers submitted by 2 authors

Description: This paper outlines the limitations inherent in current actuarial pricing techniques and describes a macro pricing process for product development that can produce optimal decisions in competitive environments. A discussion of the paper follows. From Transactions of Society of Actuaries 1991, Vol. 43.

Description: Some insurance products on the market today accelerate the death benefit by paying a portion of the benefit before death under certain prescribed conditions. The more common of these products are long-term-care and dread disease riders to life policies. This paper presents generic formulas for calculating the cost of morbidity that would be multiplied by the policy's net amount at risk in an asset share pricing calculation. From Transactions of Society of Actuaries 1990, Vol. 42.