Chapter 14 - Surrender Values and Alternations of Non-Linked Contracts Flashcards
1
Q
Principles for Determining Surrender Values (11)
A
- Consider RBE
- Consider regulation 5 on early termination values
- Consider accrued and future profits from surrendering policy
- Should be based on smoothed EAS
- Consider competitors’ SV’s
- Simple and within administrative capacity
- Allow for cost of effecting surrender
- Well documented and clearly explained to ph
- Not subject to frequent changes, unless necessitated by financial conditions
- Allow fair surrender charge deduction
2
Q
A