Terminal CARVM Allowance Clause Samples
The Terminal CARVM Allowance clause defines how the terminal reserve for an insurance policy is calculated using the Commissioners' Annuity Reserve Valuation Method (CARVM). This clause typically specifies the assumptions, methods, and timing for determining the reserve at the end of a policy period or upon policy termination. For example, it may outline how mortality rates, interest rates, and policyholder options are factored into the reserve calculation. Its core function is to ensure that insurers maintain adequate reserves to meet future policyholder obligations, thereby promoting financial stability and regulatory compliance.
Terminal CARVM Allowance. At Terminal Settlement, the Reinsurer will ------------------------ transfer the Terminal CARVM Allowance on the annuities reinsured as of the terminal account date. Simultaneously, the Ceding Company will transfer an equal amount of mutually acceptable assets to the Reinsurer.