8I-U - Valuation and Financial Statements

Book:Valuation of Life Insurance Liabilities - Chapter 1 - TYPES OF VALUATIONS AND BASIC REQUIREMENTS
Book:Valuation of Life Insurance Liabilities - Chapter 2 - RESERVE METHODOLOGIES AND BASES
Book:Valuation of Life Insurance Liabilities - Chapter 3 - TYPES OF RESERVE FACTORS
Book:Valuation of Life Insurance Liabilities - Chapter 4 - VALUATION OF INTEREST SENSITIVE LIFE PRODUCTS
Book:Valuation of Life Insurance Liabilities - Chapter 5 - VALUATION OF ANNUITIES
Book:Valuation of Life Insurance Liabilities - Chapter 6 - VALUATION OF VARIABLE PRODUCTS
Book:Valuation of Life Insurance Liabilities - Chapter 7 - MISCELLANEOUS RESERVES
Book:Valuation of Life Insurance Liabilities - Chapter 8 - CASH FLOW TESTING
Book:U.S. GAAP - Chapter 3 - EXPENSES AND CAPITALIZATION
Book:U.S. GAAP - Chapter 4 - TRADITIONAL LIFE INSURANCE (SFAS 60 AND SFAS 97)
Book:U.S. GAAP - Chapter 5 - TRAD LIFE (SFAS 120)
Book:U.S. GAAP - Chapter 6 - UNIVERSAL LIFE INSURANCE
Book:U.S. GAAP - Chapter 7 - DEFERRED ANNUITIES
Book:U.S. GAAP - Chapter 8 - VARIABLE AND EQUITY-BASED PRODUCTS
Book:U.S. GAAP - Chapter 9 - ANNUITIES IN PAYMENT STATUS
Book:Study Notes and Published Refences - Note SN 8I-309-01 - MANAGEMENT REPORTS AND REPORTS TO REGULATORY BODIES
Book:Study Notes and Published Refences - Note TSA XXXVIII - STRATEGIC MANAGEMENT OF LIFE INS CO SURPLUS
Book:Study Notes and Published Refences - Note SN 81-303 - ACTUARIAL REVIEW OF RESERVES AND OTHER A.S. LIABILITIES
Book:Study Notes and Published Refences - Note SN 8I-304-00 - VALUE BASED FINANCIAL MEASUREMENT
Book:Study Notes and Published Refences - Note 8I-306-00 - CASH FLOW ANALYSIS TECHNIQUES
Book:Study Notes and Published Refences - Note SN 8I-308-00 - REGULATORS' PERSPECTIVE ON ACTUARIAL OPINIONS AND VALUATIONS
Book:Study Notes and Published Refences - Note SN 8IU-310-04 - VALN OF LIVING AND DEATH BENEFIT GUARANTEES FOR VARIABLE ANNUITIES

Valuation of Life Insurance Liabilities - Chapter 1 - TYPES OF VALUATIONS AND BASIC REQUIREMENTS


Overview
Types of Valuations
Effects of Stat Reserve Requirements
Valuation Requirements
Valuation Requirements in the US
Valuation Requirements in Canada

Valuation of Life Insurance Liabilities - Chapter 2 - RESERVE METHODOLOGIES AND BASES


Valuation Standards in the US
Valuation Bases in the US
Reserve Methods in teh US
Valuatino Standards in Canada (mostly skipping b/c Canada)

Valuation of Life Insurance Liabilities - Chapter 3 - TYPES OF RESERVE FACTORS


Mean and Mid-Terminal Reserves and Their Relationshiop to Deferred and Unearned Premiums
Graphic Representatin of Reserves
Other Reserve Adjustments and Alternative Types of Factors

Valuation of Life Insurance Liabilities - Chapter 4 - VALUATION OF INTEREST SENSITIVE LIFE PRODUCTS


overview
Flexible Premium UL
Fixed Prem UL
Secondary Guarantees
Off Anniversary Reserves
Possible Changes and California UL Regulation
Minimum vs Adequate Reserves

Valuation of Life Insurance Liabilities - Chapter 5 - VALUATION OF ANNUITIES


Overview
Basic Application of CARVM to SPDAs
Common Product Features
Practical Considerations in Calculation of CARVM Reserves
Annual Premium Annuities under CARVM
Flexible Premium Annuities Under CARVM
Immediate Annuities
Determination of Appropriate Int Rates under SVL

Valuation of Life Insurance Liabilities - Chapter 6 - VALUATION OF VARIABLE PRODUCTS


Overview
Flexible Premium and Bybrid Variable Life
Fixed Premium Variable Life
Single Premium Variable Life
Variable Annuities
GMDB Reserves: Flexible PRemium Life Products
GMDB Reserves: Fixed Premium Life Products
GMDB Reserves: Annuity Products

Valuation of Life Insurance Liabilities - Chapter 7 - MISCELLANEOUS RESERVES


Overview
Deficiency Reserves
Accidental Death Benefit
Disability Waiver of Prmeium Benefits
Nondeduction of Deferred Fractional Premiums at Death
Canadian Lapse-Supported Policies
Last-To-Die Policies

Valuation of Life Insurance Liabilities - Chapter 8 - CASH FLOW TESTING


Overview
Definition of CFT
Assumptions Needed
Case Study

U.S. GAAP - Chapter 3 - EXPENSES AND CAPITALIZATION


Background
Categorization Stipulated by SFAS 60
Expense Categorization Under Other Pronouncements
Line of Business and Category Analysis
Determination of Deferrability of Acquisition Costs
Timing of Deferrability
Recoverability Testing and Loss Recognition
Relation fo GAAP Expense Assumptions to Pricing Expense Assumptions
Special Expense Issues
Worksheet Approaches to DAC Calc

U.S. GAAP - Chapter 4 - TRADITIONAL LIFE INSURANCE (SFAS 60 AND SFAS 97)


Overview
Product Features
Benefit Reserve Methodology
Expense Recognition
Selection of Assumptions
Limited-Payment Contracts
Participating Products
Indeterminate Premium Products
Implications of Reserve Formula Selection

U.S. GAAP - Chapter 5 - TRAD LIFE (SFAS 120)


Overview
Scope and Applicability
Overview of Acct Model
Amortization Methods
Selection of Assumptions
True-up and Unlocking
Realized Capital Gains
Recoverability and Loss Recognition
Policyholder Benefit Liabilities
DAC and Terminal Div Liabilities
Additional Considerations
Examples p. 137+

U.S. GAAP - Chapter 6 - UNIVERSAL LIFE INSURANCE


Background
Applicability
Definition
Typical Product Designs
Presentation of Results
Benefit Reserves
Capitalization and Amortization of Acquisition Expenses
Deferral of Unearned Revenue
Treatment of Bonuses and Other Special Benefits
Recoverability and Loss Recognition

U.S. GAAP - Chapter 7 - DEFERRED ANNUITIES


Overview
Accounting Model Classification
Benefit Reserves
DAC Amortization under SFAS91
Accrual of Unearned Revenue Liability (URL)
Selection of Assumptions
Loss Recognition Tests
Examples pp 186 - 190
Presentation of Results
Acconting for Special Features

U.S. GAAP - Chapter 8 - VARIABLE AND EQUITY-BASED PRODUCTS


Introduction
Variable Products
Equity-Indexed Annuities

U.S. GAAP - Chapter 9 - ANNUITIES IN PAYMENT STATUS


Background
Contract Classification
Investment Contracts
Limited-Pay Contracts
Conversion of Policy-Year Factors To Calendar-Year Factors


Study Notes and Published Refences - Note SN 8I-309-01 - MANAGEMENT REPORTS AND REPORTS TO REGULATORY BODIES


Intro
Management Reporting
Reporting to the SEC
Reporting to Other Regulatory Agencies

Study Notes and Published Refences - Note TSA XXXVIII - STRATEGIC MANAGEMENT OF LIFE INS CO SURPLUS


Strategic Planning
Financial Planning
Company Organization
Evaluating Financial Performance

Study Notes and Published Refences - Note SN 81-303 - ACTUARIAL REVIEW OF RESERVES AND OTHER A.S. LIABILITIES


Overview
Applicable Professional Stds Regarding Actuarial Review of Reserves
General Principles of a Satisfactory Audit
Reserve Assembly Process
Auditing Life Insurance Reserves and Related Actuarial Items
Spot Checks (tests of inventory, test calcs, transactional checks and policy traces)
Independent Full Recomputations
Tests of Aggregate Progress of Reserve From One Fiscal Period to the Next
Tests of Relationships of Reserve Items to Other Financial Items (Units of Measurement) And Stability Therein From One Fiscal Period to Another
Tests of Reserve Adequacy
Conclusions
Healthy Skepticism
Appendix A - "Qualified Actuary" Standards
Appendix B - Recommendation 7 - Statement of Actuarial Opinion
Appendix C - Recommendation 9 - Materiality
Appendix E
Appendix F - Analysis of Increse in Reserves

Study Notes and Published Refences - Note SN 8I-304-00 - VALUE BASED FINANCIAL MEASUREMENT


Background
Concepts Underlying Value-Based Financial Measurement
Description of Value-Based Measurement
Numerical Illustrations of Fin Measurement Systems
Practical Considerations of Implementing a Value-Based System

Study Notes and Published Refences - Note 8I-306-00 - CASH FLOW ANALYSIS TECHNIQUES


Valuation Concepts
Cash Flow Analysis for Valuation
Functional Relationship: The Liab Side
Functional Relationships: The Asset Side
Assets

Study Notes and Published Refences - Note SN 8I-308-00 - REGULATORS' PERSPECTIVE ON ACTUARIAL OPINIONS AND VALUATIONS


Valuation Methodology or Mythology - Robert J Callahan
What Regulators Need - John O Montgomery

Study Notes and Published Refences - Note SN 8IU-310-04 - VALN OF LIVING AND DEATH BENEFIT GUARANTEES FOR VARIABLE ANNUITIES


Introduction
Types of Guarantees
Characteristics of Living and Death Benefit Guarantees
Theoretical and Practiacl Issues in Valuing Guar Benefits
  • Pre-Annuitization Mortality
  • Partial W/D and Contributions
  • Grouped vs Seriatim Data
  • Asset Allocation and Fund Transfers
  • Future Economic Scenarios Statutory Valn
    US GAAP
    Conclusion
    Appendix A
    Appendix B
    Reinsurance - Tiller and Tiller
    Chapter 4 - TRADITIONAL REINSURANCE
    YRT (see html)
    Coinsurance
    Modified Coinsurance - ModCo
    Chapter 5 - FINANCIAL REINSURANCE
    Uses of Financial Reinsurance
    Terminology
    Comparative Model - see book beginning p 112
    Plans of Financial Reinsurance
    Coinsurance
    ModCo
    Funds Withheld Coins
    Funds Withheld ModCo
    Partially Modified Coins (PartCo)
    Regulation and Taxation
    Security Considerations

    Copyright © 2004 Steve Welander.
    Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.2 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of the license is included in the section entitled 'GNU Free Documentation License'.