Description: The actuarial profession is faced with a problem of determining delta-ized reserves on a basis which will include appropriate provision for adverse deviations in mortality, lapses, interest rates, and expense rates. This paper describes briefly a method which could be used to solve this Followed by papers submitted by 2 authors problem in a flexible manner.

Description: This paper presents a policy-year model for GAAP valuation of reinsurance accepted on the coinsurance and modified coinsurance bases. Also presented are the interrelationships between the model's methodology and statutory accounting procedures, a discussion of experience-refunding situations, and a demonstration of the model's ability to yield GAAP profits as a level percentage of premium. From Transactions of Society of Actuaries 1981, Vol. 33.