Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Life
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

2017 ACTUARIAL SALARY SURVEYS
Contact DW Simpson for a Personalized Salary Survey

Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 07-25-2018, 06:23 PM
gwittenb's Avatar
gwittenb gwittenb is offline
SOA AAA
 
Join Date: Jan 2014
College: University of Rochester Alumni
Posts: 16
Default Whole Life Dividends for Stock Company

Does anyone know if there's guidance on how these are determined? I'm trying to figure this out in a pretty messy model and I'm not sure how the dividend rates are being determined (besides the predetermined scales, which appear to be adjusted by something).
__________________
"People who enjoy meetings should not be in charge of anything." -Thomas Sowell
Reply With Quote
  #2  
Old 07-25-2018, 07:08 PM
JMO's Avatar
JMO JMO is offline
Carol Marler
Non-Actuary
 
Join Date: Sep 2001
Location: Back home again in Indiana
Studying for Nothing actuarial.
Posts: 37,660
Default

Quote:
Originally Posted by gwittenb View Post
Does anyone know if there's guidance on how these are determined? I'm trying to figure this out in a pretty messy model and I'm not sure how the dividend rates are being determined (besides the predetermined scales, which appear to be adjusted by something).
It's a rare product, and probably varies a lot from company to company. I suppose the basis for it is a three factor approach (search at soa.org if you don't know the three factors) but adjustments are not something you are likely to learn about on the AO. Is this a matter of business acquired by acquisition?
__________________
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
Originally Posted by DoctorNo View Post
Depends upon the employer and the situation.
Quote:
Originally Posted by El Actuario View Post
Therapists should ask the right questions, not give the right answers.
Quote:
Originally Posted by Sredni Vashtar View Post
I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
Reply With Quote
  #3  
Old 07-26-2018, 10:29 AM
Chuck Chuck is offline
Member
SOA AAA
 
Join Date: Oct 2001
Location: Illinois
Posts: 4,518
Default

For what it's worth - This is decades ago, so the regs probably have changed - but back in the day, at least some stock companies set up internal "par accounts", the basic idea being to treat the par policies like a separate company inside the stock company. There were regulations (maybe in just a few states - I can't recall) that ruled that 90% of the surplus generated from those accounts had to ultimately/eventually be returned to the par policyholders.

There was lots of wiggle room in those rules I think (but then again, there's lots of wiggle room in passing surplus back to par policyholders in actual mutual companies).
Reply With Quote
  #4  
Old 07-26-2018, 10:34 AM
Chuck Chuck is offline
Member
SOA AAA
 
Join Date: Oct 2001
Location: Illinois
Posts: 4,518
Default

Also - I have always thought of the dividend formulae as a "weight" that determines how the company will allocate a given amount of surplus. But the amount of surplus to be allocated in total is determined by the board of the company.

The board has wiggle room in determining the amount of surplus and the company has wiggle room in determining the weights. It always all seemed very loosey-goosey.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 03:54 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.17590 seconds with 9 queries