T
tbs1984
Member
I still have got some questions under section 4 - Determining the terms to quote
4.1 Equation of policy values
Expected profit from altered without- profits contracts
the core reading says,
the total profit expected from an altered contract depends on the relationship between the profit 'released' at the date of alteration (named it as part one) and the profit expected to emerge, from the date of alteration, over the remaining life of the altered contract (named it as part two).
Under these 2 parts, there are sub-bullet points explanations. However, i don't quite understand the whole picture. Can someone explain in details with simple examples?
Besides, why realistic prospective value comes into the picture here? I thought for surrender value, and policy value, either altered or unaltered, we should still use the prudent basis? Also, do we use earned asset share as our policy value (if i am not mistaken, i remember policy value is reserve.)?
Thanks a lot for your favour! Cheers!
4.1 Equation of policy values
Expected profit from altered without- profits contracts
the core reading says,
the total profit expected from an altered contract depends on the relationship between the profit 'released' at the date of alteration (named it as part one) and the profit expected to emerge, from the date of alteration, over the remaining life of the altered contract (named it as part two).
Under these 2 parts, there are sub-bullet points explanations. However, i don't quite understand the whole picture. Can someone explain in details with simple examples?
Besides, why realistic prospective value comes into the picture here? I thought for surrender value, and policy value, either altered or unaltered, we should still use the prudent basis? Also, do we use earned asset share as our policy value (if i am not mistaken, i remember policy value is reserve.)?
Thanks a lot for your favour! Cheers!