when questions mention 'zillmer adjustment' what value are they actually talking about? i'm sure i've seen it mean different things in different questions.
is it:
a) the amount assumed for initial expense i.e. in ZNP = NP + IE/a(x)
b) the difference between the NP and the ZNP i.e. IE/a(x)
c) the difference between the net premium reserve and the zillmerised net premium reserve i.e. IE/a(x)*a(x+t)
my question is related to exam questions of the type 'calculate the reserve when a zillmer adjustment of £500 is applied'
thanks
Last edited by a moderator: Sep 21, 2011