What is ULSG insurance?

Guaranteed Universal Life (GUL), also referred to as Universal Life with a No Lapse Guarantee, and Universal Life with secondary guarantee (ULSG) is in most cases the best choice for permanent life insurance for those in their late 50’s or older.

What is actuarial Guideline 38?

Actuarial Guideline 38 was created in 2003 to clarify Valuation of Life Insurance Policies Regulation (#830)—commonly referred to as Regulation XXX—which set forth reserve requirements for all universal life products that employ secondary guarantees (ULSG), with or without shadow account funds.

What is ag 38?

AG 38 is a document of guidelines drafted by the NAIC in 2013 that addresses whether or not insurers have adequate reserves for certain types of life insurance policies (specifically – universal life insurance policies that offer secondary death benefits to policyholders).

What is shadow account in universal life insurance?

The shadow account is a value that is calculated similar to a UL cash value. However, the shadow account has its own set of charges. As long as the net shadow account value is positive, the policy will stay in force regardless of whether the cash value is sufficient to cover the insurance charges.

What is an SOP 03 1 reserve?

Under SOP 03-1, the Company calculates an additional liability (the “SOP reserve”) for certain guaranteed benefits in order to recognize the expected value of death benefits in excess of the projected account balance over the accumulation period based on total expected assessments.

Where can I find actuarial guidelines?

The guidelines are published by the Council on Professionalism of the American Academy of Actuaries. The scope of the AGs is only the ASOPs (including Exposure Drafts of ASOPs).

What is loss recognition testing?

RECOVE, RABIL1TY/LOSS RECOGNITION. QPV – GPV is the technique specified to test recoverability under both FAS 60 and FAS 97. It involves calculating the present value of noninvestment cash flows at the expected investment earnings rate, which is usually level.

What is actuarial standard of practice?

Actuarial Standards of Practice (ASOPs) identify what the actuary should consider, document, and disclose when performing an actuarial assignment. They range from detailed instructions on how to make certain calculations to more general requirements as to what should be disclosed in actuarial reports.

What is DAC unlocking?

The DAC unlocking process involves the calculation of a stream of historical and projected margins for each business block, or cohort, as of time t.

What is DAC recoverability?

The DAC is recoverable if the K-factor is less than 100%. If there is an unearned revenue liability (URL), it may even be recoverable if the K-factor is higher than 100%.