REDLINE: ii. The rate for the policy for durations and later shall be set equal t+1 to: 0.01 + (1 ) 0.005 Lx+t = Rx+t Rx+t rx+t • – • • Where is the ratio determined in Section 3.B.5.d.ii. rx+t REASONING: Make it very clear that the constant lapse rate used in the as-of-issue calculations differs from the constant lapse rate used in the calculations done as of the valuation date.
REDLINE: ii. The rate for the policy for durations t+1 and later shall be set equal to: Lx+t = Rx+t • 0.01 + (1 – Rx+t ) • 0.005 • rx+t Where rx+t is the ratio determined in Section 3.B.5.d.ii. REASONING: Make it very clear that the constant lapse rate used in the as-of-issue calculations differs from the constant lapse rate used in the calculations done as of the valuation date.
cmte_a_latf_181213_apf_2018-63.docx