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
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