III IC-27 case studies
III IC-27 · Put your knowledge to work in context.
IC-27 is the paper code used in this profile for the Insurance Institute of India's Life Insurance Finance subject, which appears in the Institute's published study-material list as IC-26-Life Insurance Finance (E). It is a professional examination paper within the Institute's life-insurance stream, aimed at candidates working toward Institute qualifications and at practitioners who need a working command of how money moves through a life insurer - premium income, reserves and mathematical provisions, expenses, taxation, investment of the life fund, valuation of liabilities, surplus distribution and the statutory reporting that ties these together. The III IC-27 case studies are 5 cases and about 3,203 words.
1Capital Adequacy and Growth in a Mutual Life Insurer
Northstar Mutual, a 6.8 billion-asset life insurer, reports total adjusted capital of 2.5 billion and an RBC ratio of 410%. The board has approved a strategic push into guaranteed universal life for the affluent market.
649 words, about 3 min2Captive Reinsurance and Reserve-Credit Risk
Evergreen Life cedes a block of 20-year term policies to a special-purpose captive reinsurer. The block carries 800 million of statutory reserves but only 450 million of economically justified reserves.
699 words, about 3 min3Duration Gap and Liquidity in a Fixed Annuity Block
Coastal Annuity Company has a $5.0 billion general account supporting fixed deferred annuities with a current crediting rate of 4.25% and a minimum guaranteed rate of 2.00%. The liabilities have an estimated duration of 7.2 years.
619 words, about 3 min4Product-Line Profitability and Overhead Allocation
Summit Life's management committee is reviewing product-line profitability. Fixed overhead of 48 million is allocated to product lines in proportion to direct premium.
599 words, about 3 min5Choosing Between Coinsurance and Assumption Reinsurance
Lakeshore Life is negotiating a 100% coinsurance agreement on a closed block of traditional whole life policies with 1.2 billion of statutory reserves and 180 million of annual premium. The reinsurer offers an 8% ceding commission on reserves, or 96 million, and will assume the reserves.
637 words, about 3 min