8I - CLHIA Study Note

[A Student]

Hello fellow sufferers,

Does anybody have a feel for what we should get out of this study note? The "Handbook" that it is based off of is not part of the reading for the exam. So for the US actuaries, its making suggestions in ways to interpret/change regulations that I'm not familiar with (except as they've come up on the Income Based Reserves reading - another winner).

Any thoughts would be appreciated.
Thanks...

[mayreeh]

My notes for that study note mostly consist of the list of recommendations boiled down to what and why.

I don't have my notes with me right now, but going by memory....

I think that there is something in there about accounting for the owner occupied real estate as a portfolio investment. Reasoning: if you don't, then you penalize the original policyholders who paid for the building.

Hence, policyholder equity goes beyond determination of dividend scales. It goes into the accounting that underlies the determination of the investment performance of each block.

[Double High C]

I would also read this in conjunction with the CIA Standard of Practice for Valuation of Policy Liabilities of Life Insurers.