Actuarial Methodology Sample Clauses
Actuarial Methodology. As described below, a model was developed from the in force data as of the Statement Date. Model cells were developed for representative plans, underwriting classes, issue years, issue ages, genders, loan rates and tax qualification status. Minor plans were mapped into major plans with similar characteristics. Policies with certain plan characteristics were also combined in determining model cells in those situations where small in force amounts warranted such consolidation. Model distinctions were maintained where both material differences in policy characteristics and material in force amounts were present. Historical and prospective projections of statutory contribution to surplus were developed employing the respective assumptions as outlined below. Historical surplus contributions were accumulated with interest to the Statement Date and prospective surplus contributions were discounted to the same date as described in Section II. The sum of each model cell's historical and prospective AC as of the Statement Date was divided by the model cell's in force amount as of the Statement Date to calculate that cell's AC factor. The in force amount was either the statutory policy reserve or the face Actuarial Contribution Memorandum Page 16 November 16, 1999 493 amount depending on the plan or rider benefit. Each eligible policy's AC was then determined from its actual in force amount as of the Statement Date and the AC factor for the appropriate model cell. These factors were interpolated and extrapolated (subject to limits, where appropriate, after which the same factor was used without further extrapolation) to establish factors for all existing issue year/issue age combinations.
Actuarial Methodology. As described below, a model was developed from the in force data as of the Statement Date. The important criteria for defining a model cell were benefit type and issue year. Plans with other benefits were modeled into one of the modeled plans based on similarity of benefit. Historical and prospective projections of statutory contribution to surplus were developed using a gains by source analysis and employing the respective assumptions as outlined below. Historical surplus contributions were accumulated with interest to the Statement Date and prospective surplus contributions were discounted to the same date as described in Section II. The sum of each model cell's historical and prospective values as of the Statement Date was divided by the model cell's statutory reserve as of the Statement Date to calculate that cell's AC factor. Each eligible contract's AC was then determined from its actual statutory reserve as of the Statement Date and the AC factor for the appropriate model cell.
Actuarial Methodology. As described below, a model was developed from the DI in force data as of the Statement Date. The essential criterion for defining a model cell was the policy form. There were no minor plans that needed to be mapped into a major plan. Historical and prospective projections of statutory contribution to surplus were developed employing the respective assumptions as outlined below. Historical surplus contributions were accumulated with interest to the Statement Date and prospective surplus contributions were discounted to the same date as described in Section II. The sum of each model cell's historical and prospective values as of the Statement Date was divided by the model cell's premium as of the Statement Date to calculate that cell's AC factor. Each eligible policy's AC was then determined from its actual premium as of the Statement Date and the AC factor for the appropriate model cell.
Actuarial Methodology. As described below, a model was developed from the in force data as of the Statement Date. The important criteria for defining a model cell were plan, issue age and issue year. Plans were modeled as a 10 year certain & life, a joint and 100% survivor with 10 year period certain, a life only or a cash refund benefit. Historical and prospective projections of statutory contribution to surplus were developed using a gains by source approach and employing the respective assumptions as outlined below. Historical surplus contributions were accumulated with interest to the Statement Date and prospective surplus contributions were discounted to the same date as described in Section II. The sum of each model cell's historical and prospective values as of the Statement Date was divided by the model cell's statutory reserve as of the Statement Date to calculate that cell's AC factor. Each eligible contract's AC was then determined from its actual statutory reserve as of the Statement Date and the AC factor for the appropriate model cell. Interpolation and extrapolation on issue age was employed where necessary.
Actuarial Methodology. HISTORICAL METHODOLOGY The calculation of historical ACs for Structured Settlement, Terminal Funding and Closeout contracts used an income statement approach. Calculations were based on items that affect statutory surplus. The annual AC was defined as follows: Contributions + Net investment income on mean statutory reserves + Other income and transfers - Benefits paid - Incurred expenses - Increase in statutory reserves - FIT incurred Net investment income was calculated based on earned rates used in the contract's pricing. Where earned rates were unavailable, a reasonable proxy was developed. Earned rates were adjusted to reflect asset calls, which are triggered when interest rates decline. Since these pricing earned rates reflect the total return, no explicit adjustment for capital gains and losses was needed. Historical ACs for GICs, Treasuries Plus and Participating Mortgage contracts were calculated using an earnings by source approach. Interest and expense margins were included in the historical AC calculations. The annual AC was defined to be as follows: Interest spread on contract mean fund balances + Expense charges - incurred expenses - FIT incurred Net investment income was based on pricing earned rates or proxies, adjusted to reflect asset calls where appropriate. There was no explicit adjustment for capital gains and losses.
Actuarial Methodology. Because of the small number of contracts in this block and their similarity to TNE's supplementary contracts with life contingencies, AC factors for the immediate annuities were set equal to the AC factors derived in Section X-C for the same issue year and issue age.
Actuarial Methodology. AC factors were developed as a percentage of premium as of the Statement Date. For each issue year, the rate of after-tax gain or loss per dollar of premium was accumulated with interest to the Statement Date as described in Section II. The accumulation of all years' values from issue through the Statement Date determined the historical AC per $1 of premium for in force policies of that issue year.
Actuarial Methodology. A representative model was developed to calculate AC factors for this LOB. The in force was modeled into major plan groupings and funding levels. The experience assumptions and contractual characteristics were used in the historical model and prospective assumptions were utilized in the prospective model. Adjustments were made to premiums, mortality, and expenses, as described below, and FIT as described in Section II. Historical and prospective projections were developed for each model cell. Historical contributions to surplus were accumulated with interest to the Statement Date and prospective contributions to surplus were discounted to the Statement Date as described in Section II. These historical and prospective values were summed for each model cell to produce the total AC per model cell. The total AC for each model cell was divided by the total face amount (on the Statement Date) of each model cell. This generated an AC factor for each model cell expressed as a percentage factor relative to face amount. Each policy's AC was then determined from its actual face amount and a two dimensional interpolation of its actual funding level and issue age in relation to the modeled funding level and issue age.
Actuarial Methodology. AC factors were developed as a percentage of premium as of the Statement Date. For each issue year the rate of after-tax gain or loss per dollar of premium was accumulated with interest to the Statement Date as described in Section II. The accumulation of all years' values from issue through the Statement Date determined the historical contribution per $1 of premium for in force policies of that issue year. With the transfer of the business and administration to Kanawha in 1995 no future gain or loss after 1997 accrues to MetLife and there was no prospective AC attributable to these policies.
Actuarial Methodology. HISTORICAL METHODOLOGY The calculation of historical ACs for Deferred Annuity and Deposit Administration contracts used an income statement approach. Calculations were based on items that affect statutory surplus. The annual AC was defined as follows: Contributions + Net investment income on mean statutory reserves + Other income and transfers - Benefits paid - Incurred expenses - Dividends - Risk charges retained (as described below) - Increase in statutory reserves + Realized and unrealized capital gains and losses on mean statutory reserves - FIT incurred Profit charges are embedded in the net investment income calculation and thus are an addition to historical AC. Risk charges were not viewed entirely as a source of profit to MetLife, but rather partly as compensation for assuming risks associated with the business. Risk charges retained are the portion of the risk charges needed to offset losses sustained by the company. The calculation of historical ACs for IPG and S&I contracts used an earnings by source approach. Interest spreads, expense margins and other charges related to specific costs Actuarial Contribution Memorandum Page 65 November 16, 1999 542 (e.g. a charge for FIT) were included in the historical AC calculations. The annual AC was defined to be as follows: Interest spread on contract mean fund balances + Expense charges - incurred expenses + Other charges made to contract fund balances + Risk charges - Risk charges retained - Increase in surplus strain + Interest on mean surplus strain + Realized and unrealized capital gains and losses on mean contract fund balances and mean surplus strain - FIT incurred Profit charges are embedded in the interest earned calculations and thus are an addition to historical AC. Risk charges retained are the portion of the risk charges needed to offset losses sustained by the company. The annual ACs under both methodologies were accumulated with interest to the Statement Date as described in Section II. PROSPECTIVE METHODOLOGY Factors were developed by product type and, where material, by categories of funds within product type, and applied to the statutory reserves as of the Statement Date. The derivation of the factors is discussed below.