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Published online by Cambridge University Press: 07 November 2014
The paper discusses developments resulting from (1) the recent passage by most of the state legislatures of the “Standard Valuation Law” and the “Standard Non-forfeiture Law,” and (2) the general adoption by the companies of a lower interest assumption in the calculation of premiums, reserves and non-forfeiture values.
After a brief review of the system of regulation of life insurance in the United States and of the more important differences in practice as compared with practice in the United Kingdom, the paper proceeds to outline the background which led to the appointment of the “Guertin Committee” by the National Association of Insurance Commissioners to study and report on the need for a new mortality table and related matters and (subsequently) on non-forfeiture benefits. The main recommendations of the Committee and the subsequent modifications thereof as adopted by the Commissioners and later embodied in the Standard Laws are detailed.
The effects on life insurance operations of the new Standard Laws in conjunction with lower interest assumptions and the marked upward trend in expenses are discussed. The paper concludes with a brief reference to two important changes being made by some companies in their policy conditions.
page 281 note * United States v. South-Eastern Underwriters Association, et al., 322 U.S. 533, 88 L. ed. 1440.
page 288 note * The nominee of the Actuarial Society was Mr. J. S. Thompson, a Fellow of the Faculty.
page 289 note * Report of the Committee to Study the Need for a New Mortality Table and Related Topics, 202 pp., published by the National Association of Insurance Commissioners, San Francisco, 1939.
page 291 note * Reports and Statements on Non-forfeiture Benefits and Related Matters, 289 pp., published by the authority of the National Association of Insurance Commissioners and printed by the Actuarial Society of America and the American Institute of Actuaries, 1942.
page 295 note * These correspond roughly to such organisations in the United Kingdom as the Life Offices' Association and the Associated Scottish life Offices.
page 296 note * In New York, submission of such a plan is required where there is any difference.
page 300 note * See T.A.S.A.,vol. xxxix. pp. 8–23.
page 300 note † See Report of Committee on Disability Experience, 1926–published by The Actuarial Society of America.
page 301 note ‡ See T.A.S.A.,vol. xl. pp. 22–49.
page 301 note * “Commissioners Reserve Valuation Method”, R.A.I.A.,vol. xxxv. p. 258.
page 301 note † See paper by O. C. Lincoln, T.A.S.A., vol. xlvii. p. 10.
page 304 note * See First Report of the Guertin Committee, pp. 58–61.
page 308 note * The “experience premium” plan is described and discussed in a paper by E. W. Marshall to be presented at the Centenary of the Institute of Actuaries.
