Can anyone please tell me when can we use formulae for net premium reserve given in the the table i.e. page37? Is it only for those endowment assurance questions in which pricing basis and reserving basis are same( which includes what exactly as in just the rate of interest or mortality experience too.).Also can it be used for with profit endowment contract or not? If yes then does their also same assumptions requirement is there? Sorry for such discriptive query but just very confused on this. Thanks in advance.
You can only use the shortcut for Whole Life and Endowment and only when it's a net premium reserve. Realistically, the main occasion to worry about it is in a profit testing question for a standard endowment assurance, eg October 2010 Q14 you could waste lots of time there if you didn't use the sortcut, Good luck! John
It would have to be a without profit policy. Realistically, the main occasion to worry about it is in a profit testing question for a standard endowment assurance, eg October 2010 Q14 you could waste lots of time there if you didn't use the sortcut, Good luck! John
