LPS 340 definition

LPS 340 means APRA Prudential Standard LPS 340 Valuation of Policy Liabilities.
Sample 1

Examples of LPS 340 in a sentence

  • Paragraph 35 of LPS 340 states that, with regard to benefits that include any embeddedoptions, “the best estimate liability must include an appropriate value in respect of those 1 The European Insurance CFO Forum (‘CFO Forum’) is a high-level discussion group formed and attended by the Chief Financial Officers of major European listed, and some non-listed, insurance companies.

  • Some practitioners interpret paragraph 35 of LPS 340 to mean the asymmetric risk should only be allowed for to the extent that it arises from vested benefits being valued in the BEL, and hence conclude that no asymmetric risk reserve is required for participating business.

  • Consistency between the basis of the calculation of an asymmetric risk reserve and the application of the resulting asymmetric risk reserve under LPS 340 needs to be ensured, in particular in the treatment of policyholder retained profits for participating business and investment equalisation reserves for investment account business.

  • Under LPS 340, the best estimate liability should be representative of the mean of the distribution of the potential liability outcomes.

  • The best estimate liability (“BEL”) for participating business will use similar considerations as for non-participating business, because the BEL is defined under LPS 340 as only applying to the existing guaranteed benefits.

  • As noted earlier, paragraphs 52 to 56 of LPS 340 outline the main considerations in incorporating an allowance for asymmetric risks within the best estimate liability.

  • It is important to note that applying the asset stresses required under the Asset Risk Charge of the regulatory capital requirement is generally not a suitable replacement for an asymmetric risk reserve under LPS 340.

  • LPS 340 mostly prescribes the policy liabilities to be valued on best estimate assumptions.

  • It would also appear to be standard industry practice to make the same allowances for asymmetric risks when determining liabilities under AASB 1038 and LPS 340.

  • In particular, paragraphs 95 to 97 of LPS 340 include considerations for recalculating profit margins.

Related to LPS 340

  • NI 51-102 means National Instrument 51-102 – Continuous Disclosure Obligations;

  • NI 81-102 means National Instrument 81-102 – Investment Funds.

  • L1. L2 etc means First or second Lowest Offer etc."L1. L2 etc" means First or second Lowest Offer etc. "LC" means Letter of Credit"LC" means Letter of Credit

  • NI 51-101 means National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities;

  • NI 45-102 means National Instrument 45-102 – Resale of Securities;

  • NI 45-106 means National Instrument 45-106 – Prospectus Exemptions of the Canadian Securities Administrators;

  • NI 52-109 means National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings;

  • MI 11-102 means Multilateral Instrument 11-102 – Passport System;

  • NI 43-101 means National Instrument 43-101 – Standards of Disclosure for Mineral Projects;

  • H1, H2 etc means First Highest, Second Highest Offers etc. in Disposal Tenders means

  • PTCE 95-60 As defined in Section 5.02(b). PUD: A planned unit development.

  • NI 44-102 means National Instrument 44-102 – Shelf Distributions;

  • Rear fog lamp means the lamp used to make the vehicle more easily visible from the rear in dense fog;

  • NI 81-106 means National Instrument 81-106 Investment Fund Continuous Disclosure;

  • Polystyrene foam means blown polystyrene and expanded and

  • Treatment zone means a soil area of the unsaturated zone of a land treatment unit within which hazardous constituents are degraded, transformed, or immobilized.

  • NI 54-101 means National Instrument 54-101 – Communication with Beneficial Owners of Securities of a Reporting Issuer.

  • 2001 CSO Mortality Table means that mortality table, consisting of separate rates of mortality for male and female lives, developed by the American Academy of Actuaries CSO Task Force from the valuation basic mortality table developed by the Society of Actuaries Individual Life Insurance Valuation Mortal- ity Task Force, and adopted by the NAIC in December 2002. The 2001 CSO mortality table is included in the Proceedings of the NAIC (2nd Quarter 2002) and is supplemented by the 2001 CSO preferred class structure mortality table and may be obtained from the office. Unless the context indicates otherwise, the “2001 CSO mortality table” includes both the ultimate form of that table and the select and ultimate form of that table and includes both the smoker and nonsmoker mortality tables and the composite mor- tality tables. It also includes both the age−nearest−birthday and age−last−birthday bases of the mortality tables.

  • NI 52-110 means National Instrument 52-110 – Audit Committees.

  • NI 58-101 means National Instrument 58-101 Disclosure of Corporate Governance Practices;

  • NI 52-107 means National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency;

  • NI 41-101 means National Instrument 41-101 – General Prospectus Requirements;

  • NI 81-107 means National Instrument 81-107 Independent Review Committee for Investment Funds;

  • NI 62-104 means National Instrument 62-104 – Take-Over Bids and Issuer Bids;

  • Non-potable water means water not safe for drinking, personal, or culinary use as determined by the requirements of 35 Ill. Adm. Code 604.

  • MI 62-104 means Multilateral Instrument 62-104 – Take-Over Bids and Issuer Bids, as amended or replaced from time to time;

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