| AXIS
Update Information |
| Update
Summary: |
Provisions For Dividends In Mean Reserves |
| Update
Type: |
Enhancement
|
| Version
# : |
12302001 (14 Oct 08) |
| Modules
Affected: |
Regular Life , Par Products |
| Changes
Results: |
No
|
| GGY
Job # |
15783 |
| Detailed
Update Description |
In the reserve method object of the Regular Life module, the existing switch called “Earned dividend liabilities” has been renamed to "Dividend adjustment” with the following four options:
0 - No adjustment
1 - Add X% of earned dividend to mean reserve
2 - Set up a separate provision for X% of next policyholder dividend
3 - Set up a separate provision for X% of earned dividend
Option 0 and 1 are just renamed and will do the same as before.
In the reserve method object of the Par Products module, the following two existing scalar fields
"Prop of earned dividend liability" and "Prop of earned bonus on PUAs" have been changed to two new switches with default option 0
“Dividend adjustment”
0 - No adjustment
1 - Add X% of earned dividend to mean reserve
2 - Set up a separate provision for X% of next policyholder dividend
3 - Set up a separate provision for X% of earned dividend
and
"PUA bonus adjustment”
0 - No adjustment
1 - Add Y% of earned bonus to mean reserve
2 - Set up a separate provision for Y% of next policyholder bonus
3 - Set up a separate provision for Y% of earned bonus
All the cells in the Par Products module have been converted to option 1 for both switches. The scalar field remains to be used together with the corresponding switch with the default value of 100%.
Six calendar year results lines of "Provision for dividend" (one for each reserve section) have been added into both the Regular Life and Par Products modules. The corresponding calendar year line can also be found in the NAIC financials category report, if the NAIC financials report is turned on for a certain reserve. All those lines are only used for the new options 2 and 3. A new line called “Dividend Adjust” is added to the reserve component category report which includes amounts from all switch options.
Also, in the Regular Life module, “Provision for dividend” is added to calendar year results, which already exists in the Par Products module.
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