Quote:
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
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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.