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Old 03-07-2018, 07:59 PM
JoJo JoJo is offline
Join Date: Jan 2002
Posts: 1,774
Default Interesting Guideline Premium Question - policies with 2 accounts

Say I have a product with the following features:
* Guideline premium test
* Primary account = Premiums + Interest - charges
* Secondary account = tabular, based on issue age, duration, gender, class, face amount
* Death Benefit = face amount + Primary account (floored at the face amount)
* No partial withdrawal provision (i.e. no contractual description on how the primary or guaranteed secondary account could be adjusted).

Say I've gotten to the point where
Face = 100,000
Primary Account = 300
Death Benefit = 100,000 + 300 = 100,300
Secondary Account = 20,000 (tabular)

And I determine to maintain compliance with 7702, I must force out 2,000 of premium.

Question: How much premium would you force out and how would the sample values above be adjusted?
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Old 03-13-2018, 11:11 PM
JoJo JoJo is offline
Join Date: Jan 2002
Posts: 1,774

No one wants to take a guess at this? Just curious how others would suggest handling this hypothetical situation.
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