Common use of Actuarial Methodology Clause in Contracts

Actuarial Methodology. As described below, a model was developed from the DI in force data as of the Statement Date. The essential criterion for defining a model cell was the policy form. There were no minor plans that needed to be mapped into a major plan. Historical and prospective projections of statutory contribution to surplus were developed employing the respective assumptions as outlined below. Historical surplus contributions were accumulated with interest to the Statement Date and prospective surplus contributions were discounted to the same date as described in Section II. The sum of each model cell's historical and prospective values as of the Statement Date was divided by the model cell's premium as of the Statement Date to calculate that cell's AC factor. Each eligible policy's AC was then determined from its actual premium as of the Statement Date and the AC factor for the appropriate model cell.

Actuarial Methodology. As described below, a model was developed from the DI in force data as of the Statement Date. The essential criterion for defining a model cell was the policy form. There Minor plans were no minor plans that needed to be mapped into a major planplans with similar characteristics. Historical and prospective projections of statutory contribution to surplus were developed employing the respective assumptions as outlined below. Historical surplus contributions were accumulated with interest to the Statement Date and prospective surplus contributions were discounted to the same date as described in Section II. The sum of each model cell's historical and prospective values as of the Statement Date was divided by the model cell's premium as of the Statement Date to calculate that cell's AC factor. Each eligible policy's AC was then determined from its actual premium as of Actuarial Contribution Memorandum Page 44 November 16, 1999 521 the Statement Date and the AC factor for the appropriate model cell. No interpolation or extrapolation was necessary.