ii TABLE OF CONTENTS Section 1: Understanding The Feasibility Step of New Product Development and How It Drives Design Marino, Chapter 1, The History of Life Insurance Policy Taxation 1-1 to 1-8 Marino, Chapter 3, Taxation of Life Insurance Policies, Dispositions and Selected Valuation Issues 1-9 to 1-14 Marino, Chapter 14, Taxation of Annuity Contracts 1-15 to 1-20 Marino, Chapter 15, Deferred Annuities 1-21 to 1-24 Desrochers, Chapter 2, The Requirements for Qualification as Life Insurance under the Internal Revenue Code 1-25 to 1-32 Desrochers, Chapter 3, Computing the Sections 7702 and 7702A Limitations - Interest, Mortality and Expense Assumptions 1-33 to 1-38 Desrochers, Chapter 4, Computing the Sections 7702 and 7702A Limitations - Future Benefits, Death Benefits and Qualified Additional Benefits 1-39 to 1-43 Desrochers, Chapter 6, Specific Product Issues 1-45 to 1-50 Desrochers, 2008 Supplement to Life Insurance and Modified Endowments Under IRC 7702 and 7702A, Pages 3-33, 40-56, 71-81, Appendices A-C 1-51 to 1-58 Atkinson & Dallas, Chapter 2, Product Development 1-59 to 1-70 SN LP-121-13, Life Insurance and Annuity Non-forfeiture Practices 1-71 to 1-76 SN LP-122-13, NAIC Standard Non-forfeiture Law for Life Insurance: Sections 1-4, 5c, 6-9 1-77 to 1-84 SN LP-123-13, NAIC Standard Non-forfeiture Law for Individual Deferred Annuities 1-85 to 1-88
iii Section 2: Understanding the Design and Purpose of various Product Types, Benefits and Features Hardy, Chapter 1, Investment Guarantees 2-1 to 2-6 SN LP-102-07, Equity Indexed Annuities: Product Design and Pricing Consideration 2-7 to 2-12 SN LP-105-07, Life and Annuity Products and Features 2-13 to 2-56 SN LP-116-10, Variable Annuities, Kalberer and Ravindran, Chapters 5, 9, 10, 11 2-57 to 2-64 SN LP-126-13, Pricing Critical Illness Insurance in Canada 2-65 to 2-68 SN LP-127-13, Product Design of Critical Illness Insurance in Canada 2-69 to 2-72 SN LP-131-15, Deconstructing Long-Term Care Insurance 2-73 to 2-74 What s Backing Your Life Insurance Guarantee?, February 2005 2-75 to 2-78 Term Mortality and Lapses, August 2005 2-79 to 2-80 ASOP #2, Non-guaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts, March 2004, Updated May 1, 2011 2-81 to 2-82 Quantification of the Natural Hedge Characteristics of Combination Life or Annuity Products Linked to Long-Term Care Insurance, March 2012 2-83 to 2-86 Is This Correction Good For Life Insurance? 2-87 to 2-88 Life Insurance Acceleration Riders, Reinsurance News, July 2013, (pp. 35-38) 2-89 to 2-89 Interesting Challenges for Insurers, Product Matters, June 2012 (pp. 10-16) 2-91 to 2-92 Section 3: Understanding the Relationship Between the Product Features, Their Inherent Risks and the Selection of Appropriate Pricing Assumptions, Profit Measures and Modeling Approaches. Bennett & Zultowski, Chapter 3 3-1 to 3-4 Bennett & Zultowski, Chapter 4 3-5 to 3-6 Bennett & Zultowski, Chapter 5 3-7 to 3-8 Bennett & Zultowski, Chapter 6 3-9 to 3-10
iv Bennett & Zultowski, Chapter 7 3-11 to 3-12 Atkinson & Dallas, Chapter 10, Required Capital 3-13 to 3-20 Atkinson & Dallas, Chapter 11, Profit Measurement and Analysis 3-21 to 3-26 Atkinson & Dallas, Chapter 13, Annuity and Investment Products 3-27 to 3-38 Hardy, Chapter 1, Investment Guarantees (ref. Section 2) 2-1 to 2-6 Hardy, Chapter 2, Modeling Long-Term Stock Returns 3-39 to 3-46 Hardy, Chapter 6, Modeling the Guarantee Liability 3-47 to 3-52 Hardy, Chapter 7, A Review of Option Pricing Theory 3-53 to 3-56 Hardy, Chapter 8, Dynamic Hedging for Separate Account Guarantees 3-57 to 3-60 Hardy, Chapter 12, Guaranteed Annuity Options 3-61 to 3-64 Hardy, Chapter 13, Equity-Indexed Annuities 3-65 to 3-70 Stochastic Modeling, Introduction 3-71 to 3-72 Stochastic Modeling, Chapter I, General Methodology, Sections I.A I.B.2 and I.E 3-73 to 3-78 Stochastic Modeling, Chapter II, General Applications, Sections II.A II.A.3 3-79 to 3-84 Stochastic Modeling, Chapter III, Evaluating and Discussing Results 3-85 to 3-88 Stochastic Modeling, Chapter IV, Case Studies, pages 1-27, Development and Management of a Variable Annuity Product 3-89 to 3-96 SN LP-102-07, Equity Indexed Annuities: Product Design and Pricing Consideration (ref. Section 2) 2-7 to 2-12 SN LP-107-07, Experience Assumptions for Individual Life Insurance and Annuities 3-97 to 3-108 SN LP-110-07, Policyholder Dividends 3-109 to 3-118 SN LP-113-09, Swiss Re, Economics of Insurance: How Insurers Create Value for Shareholders 3-119 to 3-128 SN LP-114-09, CIA Research Paper, Life Insurance Costing and Risk Analysis, June 2008 3-129 to 3-140
v SN LP-129-14, Securization New Opportunities for Insurers and Investors, (pp. 1-16, 24-26, 29-36) 3-141 to 3-144 SN LP-130-14, Life Insurance Underwriting in the United States Yesterday, and Tomorrow, Ch. 1, 2, 4, 5, 6, Klein 3-145 to 3-148 SN LP-132-15, Lapse-Based Insurance 3-149 to 3-152 SN LP-134-15, Digital Distribution in Insurance: A Quiet Revolution 3-153 to 3-158 SN LP-136-15, Laporte, Chapter IV, Traditional Distribution Systems 3-159 to 3-162 Report on the Lapse and Mortality Experience of Post-Level Premium Period Term Plans, (Pages 3-98) 3-163 to 3-164 ASOP #2, Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts (Ref. Section 2) 2-79 to 2-80 Ending the Mortality Table, Living to 100 Symposium, Edwin C. Hustead, The Hay Group 3-165 to 3-166 The Response of Life Insurance Pricing to Life Settlements, Sept. 2006 3-167 to 3-168 Mortality Table Slope The Discussion Goes On, July 2004 3-169 to 3-170 Pricing in a Return on Equity Environment, TSA XXXIX, 1987 3-171 to 3-174 Risk Based Pricing Risk Management at Point of Sale, June 2009 3-175 to 3-176 Predictive Modeling for Life Insurance by Deloitte, April 2010 3-177 to 3-180 Level Term Lapse Rates Lessons Learned Here and in Canada 3-181 to 3-182 Term Conversions A Reinsurer s Perspective, Product Matters, June 2012, (pp. 1, 5-6) 3-183 to 3-184 CIA, Best Estimates Assumptions for Expenses 3-185 to 3-190 CIA, Lapse Experience Study for 10-Year Term Insurance 3-191 to 3-194 CIA, Lapse Experience Under Universal Life Level Cost of Insurance Policies 3-195 to 3-196 SOA & Milliman, Report on Premium Persistency Assumptions Study of 3-197 to 3-198 Flexible Premium Universal Life Products SOA, Modelling of Policyholder Behavior for Life and Annuity Products 3-199 to 3-204 SOA, Understanding the Volatility of Experience and Pricing Assumptions 3-205 to 3-210 In Long-Term Care Insurance SOA & Deloitte, Automated Life Underwriting: Phase 2 3-211 to 3-214 Relationship of IRR to ROI on a Level Term Insurance Policy 3-215 to 3-216
vi Section 4: Understanding Actuarial Requirements of Product Implementation and the Monitoring of Experience Versus Product Assumptions. SN LP-107-07, Experience Assumptions for Individual Life Insurance and Annuities (ref. Section 3) 3-97 to 3-107 SN LP-110-07, Policyholder Dividends (ref. Section 3) 3-109 to 3-118 SN LP-124-13, Role of the Actuary in Product Roll-out 4-1 to 4-4 SN LP-125-13, NAIC Life Insurance Illustrations Model Regulation 4-5 to 4-12 SN LP-128-13, Guideline G6: Illustrations, CLHIA 4-13 to 4-16 SN LP-135-15, Update on the Interstate Insurance Compact 4-17 to 4-18 Lapse Experience Under Lapse Supported Products, Product Matters, December 2005 4-19 to 4-20 CIA Ed.-Note: Expected Mortality: Fully Underwritten Canadian Individual Life Insurance Policies, July 2002 (excl. Appendices) 4-21 to 4-26 Experience Data Quality: How to Clean and Validate Your Data, Exclude Appendices 4-27 to 4-28 ASOP #2, Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts (Ref. Section 2) 2-79 to 2-80 ASOP # 23, Data Quality: Standard of Practice on Data Quality, Excluding Transmittal Memo and Appendices 4-29 to 4-30 The Interstate Compact, Product Matters, Feb. 2013, (pp. 8-11) 4-31 to 4-32