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  #1  
Old 11-20-2017, 04:40 PM
Chopin-Lover Chopin-Lover is offline
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Already got my answer.

Last edited by Chopin-Lover; 11-21-2017 at 04:55 PM..
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  #2  
Old 10-23-2018, 03:20 PM
garnotte garnotte is offline
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I'd appreciate if you could share your thinking on this! I'd like to know if individually underwritten group life insurance polices are subject to VM-20?

VM-20 states: "Minimum reserve requirements for variable and nonvariable individual life contracts—excluding preneed life contracts, industrial life contracts, credit life contracts and policies of companies exempt pursuant to the life PBR exemption in paragraph D below—are provided by VM-20
[…]
Minimum reserve requirements for life contracts not subject to VM-20 are those pursuant to applicable requirements in VM-A and VM-C.”

There is no mention of individually underwritten group life, so I'm not sure if they consider individually underwritten group life as individual insurance for PBR purposes.

Any help would be appreciated! Thanks
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  #3  
Old 10-23-2018, 05:20 PM
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The fact that it's individually underwritten suggests that trying to exclude it could get you in trouble. How much extra work is it to apply VM20? Honestly?
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  #4  
Old 10-23-2018, 05:29 PM
garnotte garnotte is offline
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We're currently including individually underwritten group life in PBR. I'm simply trying to confirm that it is appropriate to do so, given that VM-20 refers to "individual life contracts" instead of "individually underwritten life contracts".
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Old 10-31-2018, 12:18 PM
garnotte garnotte is offline
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Anyone mind to share their take on this?

There appears to be an Amendment Proposal Form dating back to 2013 addressing this issue (https://www.actuary.org/files/APF_VM20_Scope_8-6-13.pdf), but I can't find the conclusion. It appears this APF wasn't approved, since there is no mention of individually underwritten contract in the current version of VM-20.

Additionally, the AAA 2014 Exposure Draft (https://www.actuary.org/files/VM-20_...ft_2-24-14.pdf) mentions on Page 3 that "individually underwritten certificates issued under a group life insurance contract" are to be included in VM-20, however, this statement is no longer included in the 2017 Exposure Draft (https://www.actuary.org/files/public..._PN_051817.pdf). I'm not sure why this statement has now been removed.

Any help is very much appreciated.

Thanks!
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  #6  
Old 10-31-2018, 02:12 PM
Steve Grondin Steve Grondin is offline
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If the item was included in an exposure draft but not included in the final adopted version I would be disinclined to apply the reg of my own volition. That seems to imply it was considered but decided against. You should talk to your domiciliary regulator to see if you could get a permitted practice.
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Old 12-06-2018, 01:48 PM
Chopin-Lover Chopin-Lover is offline
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Quote:
Originally Posted by garnotte View Post

Additionally, the AAA 2014 Exposure Draft (https://www.actuary.org/files/VM-20_...ft_2-24-14.pdf) mentions on Page 3 that "individually underwritten certificates issued under a group life insurance contract" are to be included in VM-20, however, this statement is no longer included in the 2017 Exposure Draft (https://www.actuary.org/files/public..._PN_051817.pdf). I'm not sure why this statement has now been removed.

!
To reply to the thread I started, I found exactly the same thing as you did. After reaching out to a few people, we decided to exclude group life products from PBR.
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