Examples of Asset adequacy analysis in a sentence
LATF Update: Asset adequacy analysis requirements in NAIC Model #820 and VM-30 require that company Appointed Actuaries perform testing to ensure that the reserves held for the company’s liabilities are adequate in light of the assets supporting the business.
Asset adequacy analysis for all variable annuity and variable life insurance products (including that for any guaranteed living benefits, guaranteed minimum death benefits, and/or recoverability testing of CARVM allowance) should assume the return described above (before deduction of M&E charges and investment expenses) on equity funds and other funds with substantial volatility of returns.
Asset adequacy analysis principles and techniques as defined by applicable regulations, actuarial guidelines and Actuarial Standards of Practices may be relied on for many of the detailed aspects encountered in projecting cash flows.
Asset adequacy analysis generally reflects management’s actual strategy, but some actuaries believe it is not necessary for asset adequacy analysis to assume that management will exercise a voluntary option.
LATF Update 3/22/23: Asset adequacy analysis requirements in NAIC Model #820 and VM-30 require that company Appointed Actuaries perform testing to ensure that the reserves held for the company’s liabilities are adequate in light of the assets supporting the business.