ILA201-U

SSAPs

IAM G2 Scale

NAIC Dynamic Stat Val Rates

NLP Reserves

FTP Reserves

CRVM

Mean & Mid-Terminal Reserves

IPCR

Life SNL

Deficiency Reserves

XXX Steps

XXX Deficiency Reserves

XXX & Unusual CSV

UL DB

UL Rollforward

UL COI & NAR

UL CRVM

IUL Rollforward & Credits

Type 1: IGRM

IUL AG 36 method

AG 36 Methods

IUL Index Credit Methods

CARVM

CARVM treatment of common product features

Annuity SNL

AG 35

Indexed Deferred Annuity methods

Type 2 (CARVM w/ UMV)

Indexed Deferred Annuity method

Type 2 (CARVM w/ MVRM)

Indexed Deferred Annuity method

Type 1 (EDIM)

Indexed Deferred Annuity method

AG 9

IA CARVM

VM Sections

Why is the VM good?

VM-20 Min Reserve

VM-20 NPR for Term

VM-20 NPR for ULSG

Exclusion Steps for VM-20 SR & DR

Small Company Exclusion for VM-20 SR & DR

VM-20 Stochastic Exclusion Test

VM-20 Deterministic Exclusion Test

VM-20 Stochastic Reserve

VM-20 Deterministic Reserve

VM-20 PBR Assumption Type

PBR Margins & Grading

VM-21 Min Reserve

VM-21 SR

VM-21 ASPA

VM-21 PBR PW Assumptions

VM-21 PBR Surrender Assumptions

VM-21 PBR Annuitization Assumptions

VM-31

VM-G

RACI Chart meanings

These define who is Responsible (does the work), Accountable, Consulted, and/or Informed for each aspect of a process.

GAAP Balance Sheet / Income Basics

Debits vs Credits

GAAP Classification (Short vs Long Duration)

Long-duration contracts are, well, long-term. They are not frequently or unilaterally repriced.

GAAP Classification (Insurance vs Investment)

List GAAP Balances

• DAC

• LFPB

• DPL

• UPPEA

• SIL

• SIA

• Host + VED

• MRB

What Expenses are deferrable

“capitalized to DAC”

DAC

LFPB

Liability for Future Policyholder Benefits

ASOP 10

Remeasurement Loss vs. Change in Reserve

GAAP Discount Rate Updates

GAAP Discount Rate Curves

GAAP Net Income & Source of Earnings

DPL

UPPEA

Undistributed Participating Policyholders’ Earnings Account

GAAP Treatment of Prem & Surr for UL

This approach is used for contracts for which terms are not fixed and guaranteed.

• premiums aren’t revenue (COIs and exp. charges are)

• surrenders aren’t claims

SIL

SIA

DAC for UL

Because DAC basis cannot correlate with interest credits.

Use DB for Option A and NAR for option B. (Policy count doesn’t work well unless very similarly sized.)

LFPB for Annuities

VED

Value Embedded Derivative

Host

MRB

Payout Annuities (Investment)

Payout Annuities (Long-Term Traditional)

RBC Formulas & Factors

RBC Levels & Actions

C3P1

C3P2

The term for Assets-Liab (Stat vs GAAP vs RBC vs Risk Capital)

• Stat (Surplus)

• GAAP (Equity)

• RBC (Capital)

• Risk Capital (Net Assets)

Riak Capital Balance Sheet (Example)

Risk Capital Takeaways

ROE for Risk Capital

Allocating Risk Capital

Rating Agency - Rating Types

Rating Agency Criteria

Rating Agency Formulas

Multi-Stakeholder/Multi-Objective Capital Approach

Diversification of Longevity & Mortality - Conclusions

• stochastic modeling is required to understand

• Benefits are most pronounced at the tail

Bottom-Up & Top-Down Diversification

Correlation types

Inforce Mgmt strategies

• Cross-Sell or Upsell existing PHs

• Adjust NGEs

• Conversion programs

• Reinsure, Outsource administration, sell

• Improve persistency (gradual ART transition, customer engagement)

• Claims mgmt. (detecting fraud)

• asset mgmt. (duration match, hedging, pick up yield)

• Operational efficiency

Tax reserves

Tax & Taxable Income Formulas

Change in Basis

ORSA

Post-Level Term Designs

PH Dividend SOE & Calc Methods