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Old 04-26-2019, 04:41 PM
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College: Drake University
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According to the SOA LTAM Notation and Terminology Note:

A modified reserve is a reserve computed without expenses but adjusting the valuation premiums to allow implicitly for initial expenses. A full preliminary term reserve is an example of a modified reserve. All modified reserves have the expected present value at issue of the benefits equal to the expected present value at issue of the valuation premiums; valuation premiums are typically lower in the first year or first few years than in later years. Any modified reserve questions on the examination other than full preliminary term reserves will specify the modification basis in the question.

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