Surrender Value Principles

Question 1

Acronym

Answer 1

DECEASE LAPD + consistent with PPFM

Question 2

D(1)

Answer 2

Discontinuities by duration avoided

Question 3

E(1)

Answer 3

Early durations - reflect premiums paid and illustrations provided

Question 4

C

Answer 4

Competition and auction value

Question 5

E(2)

Answer 5

Ease of calculation

Question 6

A(1)

Answer 6

Asset shares

Question 7

S

Answer 7

Selection against insurer avoided

Question 8

E(3)

Answer 8

Equitable treatment of surrenderer and PH remaining

Question 9

L

Answer 9

Later duration tend to maturity value

Question 10

A(2)

Answer 10

Avoid requirement changes

Question 11

P

Answer 11

PREs

Question 12

D(2)

Answer 12

Documentation should be clear