Surrender Value Principles Flashcards
1
Q
Acronym
A
DECEASE LAPD + consistent with PPFM
2
Q
D(1)
A
Discontinuities by duration avoided
3
Q
E(1)
A
Early durations - reflect premiums paid and illustrations provided
4
Q
C
A
Competition and auction value
5
Q
E(2)
A
Ease of calculation
6
Q
A(1)
A
Asset shares
7
Q
S
A
Selection against insurer avoided
8
Q
E(3)
A
Equitable treatment of surrenderer and PH remaining
9
Q
L
A
Later duration tend to maturity value
10
Q
A(2)
A
Avoid requirement changes
11
Q
P
A
PREs
12
Q
D(2)
A
Documentation should be clear
