Guideline XXX vs SVL

[dunnigan]

For term policy reserves calculated with Guideline XXX contract segmentation, do you ignore the SVL Section 5 unitary reserves? Would hang on to the unitary reserve to use as a floor to the Guideline XXX reserve?

TIA

[JMO]

Originally Posted by dunnigan

For term policy reserves calculated with Guideline XXX contract segmentation, do you ignore the SVL Section 5 unitary reserves? Would hang on to the unitary reserve to use as a floor to the Guideline XXX reserve?

TIA

XXX was designed to avoid the games pricing people played with unitary reserves*. You can compare the segmented reserves to unitary, but I predict that you won't be finding any actual policies where the unitary reserves are higher.

* Basically the premium scales are carefully set to create zero, negative or very small unitary reserves at each duration.

[CuriousGeorge]

It's been a long time, but I thought you were required to calculate both, and carry the greater. I think X factors can potentially pull the segmented reserves lower than a straight unitary reserve in cases.