Description: This paper develops an analytical method for evaluating the utility of tax-planning activities that cause initial statutory surplus strain and expands the horizon beyond normal pricing applications to the evaluation of other activities requiring the initial investment of statutory surplus.

Description: This paper will provide demonstrations of the following three statements: That the calculation of principles-based reserves should ignore federal income taxes That the currently required statutory deferred tax calculation would need to be changed to permit an appropriate deferred tax asset to accompany such reserve so that the result can be correctly principles-based on a post-tax basis That the Tax DAC, pursuant to Section 848 of the Internal Revenue Code, is effectively a negative tax reserve.

Description: This session discussion is about health insurance tax reserves: standard morbidity tables, impact of statutory requirements, effective issue date for choice of interest rate, deductibility of additional reserves, and the chance for one-year preliminary term on certain coverages. From Record of Society of Actuaries Vol. 18, No. 1B.

Description: A discussion of the theoretical basis of deferred income tax accounting (accounting for actuaries), an overview of the current statutory accounting rules governing income tax accounting under SSAP 101, and some examples of the effects of SSAP 101’s admissibility test on regulatory capital.

Description: Discussion of the establishment of deferred tax assets or liabilities under Statutory codification