Description: The purpose of this paper note is to highlight the similarities of results from the amortization of initial life insurance acquisition costs by means of an acquisition cost amortization schedule similar to that used by accountants versus a set of actuarial-type acquisition cost natural reserve factors appropriately applied to beginning and ending in-force units.

Description: This paper discusses three methods for the amortization of deferred acquisition expenses, DAC and the results when actual experience differs significantly from that assumed. The methods include a static approach with prescheduled amortization, a dynamic technique called the expense reserve factor method, and an aggregate or accumulated premium revenue method. A discussion follows the paper. From Transactions of Society of Actuaries 1978, Vol. 30.

Description: This paper demonstrates some of the basic principles and concepts inherent in the use of natural reserves to adjust earnings and to demonstrate differences in earning patterns obtained by several alternative approaches to a pure natural reserve adjustment of earnings.

Description: This article asks the question of how to account for the purchase of a life insurance company. It outlines first what the extreme possibilities are, and second, what range of practical approaches might prove acceptable to both the accounting and actuarial profession.