Adjusted Premium Method
Definition of "Adjusted premium method"
Method of calculating the life insurance policy's cash surrender value (CSV) not contingent upon the calculation of the policy's reserve such that the CSV will approximate the asset share value of the policy as required by the standard NONFORFEITURE law. According to this method of determining the CSV, the following steps are taken:
- arriving at the first year expense allowance;
- arriving at the ADJUSTED PREMIUM;
- substituting the adjusted premium for the NET LEVEL PREMIUM used in the equation for arriving at the PROSPECTIVE RESERVE.
Popular Insurance Terms
Bond that provides additional security for a loan. ...
Accrediting body for the ACAS (Associate of the Casualty Actuarial Society) designation and the FCAS (Fellow of the Casualty Actuarial Society) designation. To earn these designations, ...
Money paid through state and federal programs to workers who are temporarily unemployed. The program, which was created by the social security act of 1935, is managed by the individual ...
Coverage for legal liability resulting from damage or destruction of the bailor's property while under the bailee's temporary care, custody, and control. Includes property on or in transit ...
Theory developed in 1931 by H. W. Heinrich; states that an accident is only one of a series of factors, each of which depends on a previous factor in the following manner: accident causes ...
Rights of employees who leave an employer with a qualified plan to withdraw their accumulated benefits. With a contributory plan, employees have immediate rights to their own contributions, ...
Insurance established under the federal Railroad Retirement Act for railroad employees, covering death, retirement, disability, and unemployment. Benefits are adjusted for cost of living ...
Underwriting method used in classifying applicants for life insurance according to certain demographic factors and assigning weights to these factors. Factors include physical condition, ...
Individuals under common management whose goal is to sell and service insurance. Office may be managed by a general agent or branch manager. ...
Have a question or comment?
We're here to help.