Description: Setting the X Factor Percentile— Commentary by G. Thomas Mitchell from The Financial Reporter, October 1999, Issue No. 40.

Description: Under non-Aristotelian logic, there are multiple values, or shades of gray. Indeed, there may even be unexpected results from logical combinations, like “both” and “neither.” This article discusses how this insight should be applied to the current debate between formula-driven reserves with limited assumption flexibility and the reserve principles approach. For reserve standards, we do need both actuarial judgment grounded in reserving principles and restrictive formula methods or safe harbors.

Description: Accounting Standards Update No. 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) has been effective for most large, public business entities since 2023 and will be effective for other insurers in 2025. While the guidance clarifies the need for incorporating claim liabilities and premium accrual balances in the liability for future policy benefits (LFPB) under LDTI, companies may still have questions given there are limited details available around the techniques used in practice. In this article, we demonstrate the need for incorporating claim liabilities and premium accrual balances in the LFPB under LDTI. We also look at two potential approaches of incorporating these accrual balances.

Description: The presenters will dig into the little rider that most actuaries don't spend much time thinking about. A regulator, a direct writer and a consultant will discuss their thoughts on this rider and point out areas where actuaries should focus before deeming it insignificant. Topics will include the current study underway to update the industry experience study (most recently done in 1952), underwriting considerations, interactions with other riders, benefit designs, unique issues on UL policies, tax implications and reserving considerations

Description: Summary of the SOA research project on PBR Simplified Methods. Describes the multi-risk scenario generator, central estimate assumptions, assumption objectivity measures, and regulatory demonstrations per VM-20.

Description: Actuarial Guideline 38 has been one of the most discussed reserving changes in the past year. First proposed in late summer of 2004, several industry groups and LHATF have worked to reach consensus on this issue. The current draft is a compromise, sometimes referred to as the “CEO compromise” since the CEOs of several leading life insurers negotiated the language. From Small Talk Newsletter, November 2005, Issue No. 25.

Description: This article is the abstract from a paper that provides methods and formulas for calculating active life reserves for credit insurance.

Description: The New 2001 CSO: Implications for Universal Life Plans

Description: This article discusses a number of product variations seen in the market with respect to Universal Life products with secondary death benefit guarantees, factors leading to those designs and considerations regarding the adequacy of reserves that emerge under AXXX formulas. This article also identifies a series of factors that authors believe will make it difficult to quickly and equitably resolve these issues through formula-based changes.

Description: Federal Tax Issues Under the 2001 CSO Mortality Tables