Model Segment definition
Model Segment means a group of policies and associated assets that are modeled together to determine the path of Net Asset Earned Rates. This grouping shall be consistent with the company’s asset segmentation plan, investment strategies, or approach used to allocate investment income for statutory purposes.
Model Segment means a group of policies with the same or substantially similar Key Risk Drivers that is modeled together using the Representative Scenarios Method.
Model Segment means a subset of assets and Contracts created through partitioning a Valuation Segment. A Valuation Segment which is not partitioned is also a Model Segment. A Model Segment belongs to a single Valuation Segment. Model Segments are optional, computationally convenient, groupings of assets and Contracts, generally associated in a manner which corresponds to groupings used in the company’s asset segmentation plan, investment strategies, crediting strategies, reinsurance agreements, or approach to allocating investment income for statutory purposes. Assets and Contracts within a common Model Segment are modeled and projected together. For purposes of determining a Valuation Segment’s path of Accumulated Deficiencies for a particular Scenario, the Accumulated Deficiencies of all Model Segments belonging to the Valuation Segment are aggregated together.