Glossary

The portion of gross premium that provides for costs. (ASOP No. 1)

An analysis of the effect on the plan’s funded status between two measurement dates resulting from the difference between expected experience based upon a set of actuarial assumptions and actual experience.

Operational and administrative expenses (other than investment expenses) not specifically defined elsewhere in this section. (ASOP No. 29)

Price changes over the whole of the economy. The most widely used indices are the Consumer Price Index and the Gross National Product price deflator. (ASOP No. 6)

Sets of standards promulgated by various standards-setting bodies by which audits or reviews are performed and against which the quality of audits or reviews may be judged.

The assumption that a CCRC is and will remain able to attract new residents to replace existing residents as the latter vacate units. (ASOP No. 3)

Structures of an organization’s personnel, committees, and boards associated with management of the business that defines where authorities are held and the associated processes for decision-making and escalation.

The application of a set of procedures and an organizational structure designed so that intended users can place their confidence in the output of the model.

The process of making adjustments to experience results in order to have a smooth progression in the mortality rates over the whole age range. (ASOP No. 48)

The extent to which a model contains separate components such as cells, or assumptions that vary by cell or time intervals. Models with a higher degree of granularity (more cells or assumption variations) may provide more model precision or flexibility, but may also require greater effort and expense to design, maintain, assemble and run. (Modeling)

The actuarial present value of benefits, expenses, and related amounts less the actuarial present value of premiums and related amounts.

The comparison of the gross premium reserve computed under one or more scenarios to the financial statement reserve.

Amounts contractually required to be paid or anticipated to be contributed by the policyholder. (ASOP No. 10)

Affiliated group of individual organizations, of which at least one is an insurer.

A premium, value, charge, or benefit that limits an NGE. Guaranteed elements are specified in the policy. Examples of guaranteed elements include maximum premium charges, maximum expense charges, minimum credited interest rates, maximum cost of insurance charges, maximum gross premiums, minimum index parameters, maximum mortality and expense (M&E) risk charges, and maximum policy loan interest rates.

A premium, value, charge, or benefit that limits an NGE. Guaranteed policy factors are specified in the policy. Examples of guaranteed policy factors include minimum cash values, minimum credited interest rates, maximum cost of insurance charges, maximum gross premiums, minimum index parameters, maximum mortality and expense charges, and maximum policy loan interest rates.

A contract which provides that the insured has the right to continue the insurance in force for a specified period by the timely payment of premiums, and that the insurer may not unilaterally change the contract during that specified period, except that premium rates may be revised by the insurer on a class basis. (ASOP No. 18)