Description: This paper presents the probabilistic concepts underlying measurement of asset adequacy in a simplified way. Discussions of this paper are included.

Description: This paper presents a method of testing second-order stochastic dominance of risks. This methodology allows risks to be partially ordered by value with available data - requiring only that the risks have yields distributed as one of the location-scale family of distributions and that the actuary can specify that family.

Description: This paper presents a model designed to help actuaries analyze and quantify C3 risk, which is the risk of loss due to changes in interest rates or the shape of the yield curve.

Description: This paper cautions against using expected utility theory for measuring insurance risk, because of the numerous inherent difficulties associated with it. Instead, an approach for loading gross premiums that is based on risk-measure functions is explored. Discussions of this paper are included.

Description: When an insurer classifies risks for the purpose of setting rates, one of the goals is to achieve equity. In general, however, inequities can be introduced when only certain factors are considered and others ignored. This paper, guided by ideas used by economists to measure income inequality, proposes a method of measuring this inequity. From Transactions of Society of Actuaries 1987, Vol. 39.

Description: This Task Force was charged to develop and understanding and quantification of risks of loss from the combination of C-1, C-2, C-3 and C-4 risks and the implications for insurer financial management. The Task Force concluded that analysis of cash flows would be the key to addressing these matters. This report is a series of papers prepared by various individuals on cash-flow analysis approaches to addressing these issues.

Description: The impetus for this paper is a concern that a unification of pricing, valuation, and management-basis financials may be essential to ensure the viability of life insurance companies in the variable economic environment of the foreseeable future, which will have serious effects on interest-sensitive products. The paper offers hypotheses on which any unification should be based. The proposed unification is structured on an equity capital management approach and on a variation of the level-return-on-equity accounting method. Discussions of this paper are included.

Description: This section presents and summarizes major insurance-related legal cases of 1957, including a case regarding interpretation of the Soldiers' and Sailors' Civil Relief Act of 1940 with amendments, FIT deduction of group disability benefits, FTC jurisdiction over advertising, group life employee ineligibility and incontestable clause, date of reinstatement, and claims issues.

Description: This paper discusses gain and loss analysis for group insurance under the following headings: Nomenclature and General Principles, Sources of Gain and Loss under Theoretical Conditions, Gains and Losses Arising in Practice, Comparison with Annual Statement Results and Effects of Changes in the Company's Dividend Formula. Discussions of this paper are included.

Description: This paper presents the theory of immunization of investments to changes in interest rates and provides an extensive series of examples and formulas used in its implementation. Also presents some implications for investment behavior, product development, interest assumptions, valuation and adjusted earnings. Discussions of this paper are included.