Hi Pls explain how these 2 points lead to the alteration terms being affordable-Pg 17 Ch22. "Provided that the policy value before alteration is not greater than the earned asset share and the basis for the policy value after alteration is not weaker than a best estimate basis, the alteration terms should be affordable." Thanks in advance
Hi The asset share is the money the insurer has got. The policy value on a best estimate basis is what the new policy is expected to cost. So if the above holds true, the amount of money the insurer has is greater than what it needs, so the alteration is affordable. Best wishes Mark
