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Old 05-31-2018, 11:29 AM
Surfohio Surfohio is offline
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Default Waiver of Premium Review

I am a Health Actuary at a company that sells a limited Group Life product to its health customers and it has a waiver of premium benefit which I also need to reserve for.

In picking up this analysis from our finance department ( don't ask me why it was there), I noticed that different members had different interest rates on their waiver of premium calculations.

Is there a logical reason for that? It seems like they should all be the same since they are forward looking.
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Old 05-31-2018, 11:44 AM
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Gandalf Gandalf is offline
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For individual life contracts in the US, statutory reserve assumptions are usually set at issue and not changed thereafter, even if different assumptions are used for new business. Something analogous might be happening on these (or not, since yours are not individual and are health).
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Old 05-31-2018, 12:18 PM
Surfohio Surfohio is offline
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How do I find out what they should have been? The guys in finance were using a Milliman model created like 8 years ago, and have not changed any assumptions.
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Old 05-31-2018, 10:28 PM
Steve Grondin Steve Grondin is offline
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Maximum stat val rate is governed by SVL. It currently uses a dynamic formula to determine each calendar year's rates. It can be found online in several places. https://www.dfs.ny.gov/insurance/life/ilifemax.htm is one.
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Old 06-01-2018, 11:14 AM
ian grey ian grey is offline
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Be sure to read Actuarial Guideline XLIV
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Old 06-06-2018, 10:27 AM
Surfohio Surfohio is offline
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Thanks for your help
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