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Old 05-21-2019, 11:18 AM
1BMF 1BMF is offline
Join Date: Jun 2010
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Default Cash value on RPU question

The question relates to calculating CV on a WL policy that is already in RPU status. To clarify - the original policy was inforce for 5 years, then was surrendered and became an RPU policy. 20 years later the RPU policy is surrendered.

1. would you agree that CV should be calculated as it would be on single premium WL with durations counting from the date the policy went into RPU?

2. would the calc be based on assumptions underlying guaranteed values in the original contract or the assumptions required as of the time the policy went into RPU?

Interest rate went down between the year the original contract was issued and the year policy went into RPU.

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Old 05-21-2019, 11:27 AM
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Old Timer Old Timer is offline
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The whole life policy would have had cash values established at the time the policy was sold. These would have been filed with the state during the approval process. The RPU cash values would typically be a net single premium based on the interest and mortality that was filed.
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Old 05-21-2019, 12:15 PM
1BMF 1BMF is offline
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Thanks! That matches up to what I was thinking.
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cso, life insurance, nonforfeiture, rpu, whole life

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