Reserves

2004-4, NAIC Proc
Our concern relates to the lack of clarity as to the meaning of this paragraph. The words “traditional plan” are particularly troubling. Does this mean a universal life policy, a whole life policy, or a term policy?

We are concerned that the vagueness of this wording will once again lead to different interpretations by the reader.

Also, we are concerned that this wording may be an attempt to hold the same reserves for universal life insurance and whole life insurance, which we strongly believe is incorrect.

Universal life and whole life are entirely different product structures, with different products features, and consumers buy these products for different reasons and purposes.

Therefore, reserves for these products should be different.

2015-3 Whole Life CRVM Reserves 6-203 2016-1 20 year Level term 6-335 asset adequacy approach
Stochastic
Linear
Principles-based
Commutation Functions Asset Shares
Reserve Factors
Pricing
Valuation Benefit Reserves
Natural Reserves
Policy Reserves
Terminal Reserves

1984-1, NAIC Proceedings, Reserves Examples

2015-3, NAIC Proceedings – 6-203

Appendix I – Whole Life Net Single Premium Comparison

CRVM Net Single Premiums

 

2016-1, NAIC Proceedings – 6-335
20 Year Level Premium Term Life Insurance (Cont.
Terminal Reserves for Single Cells — Face Amount

 1985 – New Products Accounting Alternatives -Society of Actuaries

than we used to on whole life insurance! MR. RALPH H. GOEBEL: Vanishing premium whole life is often called … the benefit reserve being something like a statutory reserve and the deferred acquisition expense item …