Standard Valuation Template v2
Valuation Template
| Parameter | Description | Example |
|---|---|---|
| Improvement Rates | A set of improvement rates which will be applied to qx values. | 0% |
| Survival Factor Interpolation Type | Specifies how qx⇒sp. | Piecewise Constant Qx |
| Interpolate VBT Table Row Based on DOB at LE Review Date | Determines whether age is interpolated between table rows. | False |
| Calculation of Joint Life Survival Curve | Specified how two sp values are combined for a JL policy. | Frasierized |
| Smoking Status Override | Disambiguates conflicting smoking statuses. (*) | Non smoker |
| LE Calculation Type | Determines whether to use mean or median LE50. (*) | Mean |
| Calculation of LE Review Date Given Multiple Reports | When combining LE reports, determines which underwriting date is used. (*) | Newest |
| NDB Collection Lag | Specifies the lag between insured death and NDB cashflows. | 3M |
| IRRs | Specifies the discount rate when NPV is calculated. | X%/X%/X% |
| Base Scenario | When calculating risks scenarios, this specifies which discount rate set is used. | 1 |
| Interest payment during NDB collection lag | NDB payments can be accrued up during lag until carrier payment. Can be None, GCR or User Specified. | None |
| User-defined NDB collection lag interest rate | If the parameter above is specified as User Specified, the rate goes here. | 0% |
| Use Fasano Tables if Available | If an LE report is Fasano, and specification of table is ignored and the Fasano table will be used for this report if the user has permission to access the Fasano tables. | True |
| Aging underwriter reports | Specifies how reports are aged from report date to value date. (*) | Regular |
| Improvement Start Type | Specifies when table improvement begins. | TableStartDate |
| Blending methodology when combining life expectancy reports | Lx/ Mqx/ MeanLE50/ MortalityFactor. This specifies how multiple reports are blended. | Lx |
| Longevity Calculation Type | Specifies some details of qx⇒sp calculation. | Exact |
| Apply Improvement Rate Before Mortality Calculation | Specifies whether the improvement rate is used during calculation of implied mortality factor. | True |
| Value Date Shift Type | This parameter will shift the value date to a policy monthiversary. | None |
| Set LE Report Date(s) to Policy monthiversary | Shift the LE report date to be on a policy monthiversary. | False |
| Include Other Purchase Costs In IRR | When calculating IRR, the Other Costs specified in the Cost/Maturity/Disposal tab can be considered in the calculation. | False |
| Include Origination Fee In IRR | As in the previous parameter, specify here whether the Origination Fee is included. | True |
| Subtract the specified number from the Mean LE50 | A global number of months to subtract from LE50 values when they are used in calculations. | 0 |
| Exclude Paid Premiums In Portfolio Valuation | When a paid premium is specified it can be subtracted from projected premiums if this parameter is true. | False |
| Use Previous Month NDB When Calculating Expected Cashflows | Some pricing models use the previous month NDB when calculating expected cashflows. | False |
| Premium Payment Day Of Month | All premiums can be shifted to a specified date in the month | Do not shift |
| Premium Payment Month Shift | If the previous parameter has a value other than “Do not Shift”, this parameter determines how they are shifted. | Following |
| NPV Cap | The NPV of this case will be capped at the specified %age of NDB. | 0% |
Premium Calculator
| Parameter | Description | Example |
|---|---|---|
| Minimum Account Value or Cash Value | Dollar amount of minimum AV/CSV. | $0 |
| Minimum AV or CSV in Months of COI | Months of COI (or COI+charges). | 1 |
| Minimum AV or CSV as a Percentage of Face | Percentage of Face Amount to maintain in AV/CSV | 0% |
| Minimum AV or CSV Combining Method | The 3 previous values can be combined as Sum/Min/Max. | Sum |
| Use following month and include charges in months of COI | If True then use next months COI and include charges. | True |
| Frequency of Minimum Premium Payments | Frequency at which payments occur. | Monthly |
| Premium Payment Type During Stub Period | Default premium payment during stub period. | Illustrated |
| Make Premium Payment on Optimization Start Date | Make catchup payment on Start Date. | False |
| Premium Optimization Mode | Frequency at which AV/CSV target it solved. | Monthly |
| Crediting Rate Option | Crediting rate applied to the account value. | Illustrated |
| Crediting Rate | If “Specified” is used above, the rate goes here. | 3% |
| Smoking Status Used in COI Curve Interpolation | Smoking status used to determine actuarial table for COI interpolation. | Non-Smoker |
| Interpolate Base Mortality Table in COI Curve | Mortality table above can be age interpolated. | False |
| Calculation of Joint Life Survival Curve for COI Curve | Methodology used for qx curve in COI interpolation. | Frasierized |
| Discount rate applied to NDB in NAAR Calculation | The formula for NAAR has a discount term, the rate goes here. | Guaranteed |
| Multiplier applied to dividends | The multiplier applied to dividends on whole life policies | 100% |
| Use ratio of COI/qx in calculating first period COI | If true, the ratio COI/qx is extrapolated rather than COI. | True |
| Assume Account Value Date is policy monthiversary | If true, rolls the AV Date to the next policy monthiversary. | False |
| Discount rate used for NLG Optimization | The discount rate when calculating the lowest premiums between NLG and COI payments. | 10% |
| COI Amount calculation version | In ClariNet, the monthly COI rate can be shown in 2 different ways. | V2 |
| Use Ultimate Qx Period | If this box is checked, the q(x) values used for COI curve interpolation will be based on the ultimate period from the actuarial tables, rather than being based on select period 1 on the illustration Account Value Date. | False |