Description: This article summarizes statutory reporting and the Pinciple-Based Initiative that the Academy, the industry and the regulators have been working on in the U.S. It addresses whether a principles-based approach will simplify reporting regulations and make them more flexible.

Description: Derives two troublesome formulas in the Gain and Loss Exhibit of the Statement using techniques developed in Measurement of Mortality. The formulas in question are those for Tabular Interest.

Description: This article discusses the impact on the financial statements of changing from Statutory Accounting to GAAP Accounting and the under-reporting of long-term earning power by insurance companies because of the AICPA technique of handling the transition.

Description: Author's views about adjustment of earnings. The thesis is, simply, that the distortion of earnings is caused by the establishment of a statutory reserve in the annual statement which differs from a realistic evaluation of the future liability. As a corollary, the concept of prepaid acquisition expense as a basis of adjustment will be seen to be inappropriate.

Description: The purpose of the article is to summarize the results and conclusions of the C-1 Risk Task Force Report prepared for the Committee on Valuation and Related Areas. A key question: Is the risk to insurance companies of defaults on junk bonds sufficient to justify increasing required surplus levels?

Description: Discusses the emerging issue of non-formulaic reserves, which surrounds principles-based reserving, in a Q&A format.

Description: The NAIC Special Advisory Committee on the Standard Valuation Law presented proposals at the December 1988 NAIC meeting for implementing the valuation actuary concept into law. The proposals were contained in a preliminary report presented to the NAIC Life and Health Actuarial Task Force, which appointed the Special Advisory Committee.

Description: A British actuaries perspective on what could happen should two reserve/accounting basis exist that could lead to reducing the strength of statutory accounting and perhaps the financial strength of North American insurance companies. Some might find similarities to what might happen during the transition to principles based statutory accounting.

Description: This Special Release of the Financial Planning and Control Division of the LOMA is a well-organized summary of the responses of 96 U.S. stock life insurance companies that adjust statutory statements to a GAAP basis. Results are presented in Section A for all 96 companies, in Section B for 36 companies with less than $25 million of premium income, and in Section C for the remaining 60 companies. From The Actuary, October 1974, Vol. 8, No. 8.

Description: The American Academy of Actuaries task force charged with developing a risk-base capital formula for health insurers submitted its preliminary report to the NAIC Health Organizations Risk-Based Capital Working Group.