Description: An analysis of how to compute the variance of the present value of future annuity payments as a component of assessing the mortality component of the provision for adverse deviation in the computation of GAAP reserves.

Description: The report begins with Tan's paper Source-of-Earnings Analysis under FAS97 Universal Life Accounting that defines a procedure for analyzing the sources of profit. This paper extends the analysis to consider the effect of actual experience varying from expected and the effect of those variances on assumptions for the future. Also the paper illustrates examples of the effect of changing future assumptions or unlocking on the magnitude and incidence of profits and amortization. A discussion of the paper follows. From Transactions of Society of Actuaries 1990, Vol. 42.

Description: This report summarizes the results of a research project undertaken by the Society of Actuaries to study the possible effects of the International Accounting Standards Board’s IASB Discussion Paper describing its Preliminary Views on Insurance Contracts on nine representative U.S. life, health and annuity products.

Description: This paper examines five alternative valuation methods - prospective, retrospective, global, intermediate, and static - for the proper application of GAAP to Medicare supplement insurance. The focus of this paper is on the changes to expected future claim costs due to changes in the Medicare deductibles.

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 session of the 1990 Valuation Actuary Symposium discusses several issues. First, the recoverability of the deferred policy acquisition cost DPAC asset from future revenues. Second, the allocation of mortality, expenses and investment income to the lines of business. Third, treatment of non-deferrable expenses and fourth, unlocking under FAS97 accounting.

Description: This paper illustrates a procedure for analyzing the sources of profit under FAS 97 and suggests an analytical procedure for reflecting actual experience and revised future assumptions in the recalculation of the estimated gross profit defined by FAS 97.

Description: Earlier this year, the Securities and Exchange Commission informed one of its registrants that prospective unlocking of benefit reserves for long-term care LTC insurance was not an acceptable practice under current US GAAP. The purpose of this article is to make actuaries aware of this action and provide some additional context.

Description: Updated discussion of IRS Proposed Regulations under Section 162(m)(6), their potential impact upon the life insurance industry, and a 2 percent de minimis exception.

Description: December 2015 issue of The Financial Reporter