Record of resolutions of the Life Insurance Actuarial Standards Board: actuarial standards - incorporating actuarial standards 1.04, 2.04, 3.04, 6.03 and 7.02 (05/12/2005)
Other Actuarial StandardsOther Actuarial Standards
Start here
Get a plain-English read of Other Actuarial Standards
Turn the raw legal text into a practical explanation grounded in Record of resolutions of the Life Insurance Actuarial Standards Board: actuarial standards - incorporating actuarial standards 1.04, 2.04, 3.04, 6.03 and 7.02 (05/12/2005).
Other Actuarial Standards
The Life Act also provides for actuarial standards in respect of the calculation of minimum surrender values and the cost of investment performance guarantees.
The principle of protecting the interests of policy owners and ensuring equity as between groups of policy owners (terminating as against remaining, those with guaranteed entitlements as against those with market related entitlements) underlies these standards.
The Surrender Value Standard serves an important purpose in the determination of solvency requirements, by providing a floor for the value of the solvency liabilities. The principle which prevails in this case is that the minimum value of the liabilities for solvency purposes (before adding margins for other risks relating to expenses and assets) must be sufficient to secure the minimum entitlement of all policy owners at that time.