Commit to funding the full actuarially
determined contribution each year.
The Third Circuit found that since no minimum term was explicitly set by law, it was reasonable to conclude that any term less than full life expectancy would still be considered actuarially
We also assume the insurance policy is actuarially
fair with a zero loading factor.
The court held that an annuity is only required to be actuarially
sound in a way that ensures the term will not be longer than the life expectancy of the annuitant.
The court held that there is no minimum term requirement for an annuity to be actuarially
sound--instead, it is only required that the annuity be actuarially
sound in a way that ensures the term of an annuity will not be longer than the life expectancy of the annuitant (as determined by the Social Security life expectancy tables).
Private insurers may offer superior performance in building a surplus, underwriting properties, spreading risk through the reinsurance and capital markets, determining actuarially
sound rates, and prioritizing and implementing coastal mitigation strategies.
Even at the actuarially
fair price for insurance, 40 to 50 percent of the farmers demand it, and they purchase coverage for more than 60 percent of their cultivated acreage.
Fair Reformation as a Workable Judicial Standard
It is now well established in actuarial insurance theory that a risk-averse expected utility maximizer will never purchase full insurance coverage if the insurance premium is actuarially
fair in conjunction with a positive proportional loading factor to cover administrative expenses and the insurer's profit (e.
Key changes in Social Security--reductions in the earnings test tax and the gradual increase to actuarially
fair levels of adjustment for postponing acceptance of benefits past age 65--and the profound shift from defined-benefit to defined-contribution employer pension plans in the private sector led to substantial increases in employment by older Americans in the 1990s.
This argument gives our first result: the actuarially
fair deposit insurance premium--the premium that exactly covers the expected cost to the deposit insurance provider--should not only increase in relation to individual bank failure risk but also in relation to joint bank failure risk.
State law caps increases at an average of 10 percent, but rates can rise above the average to meet the goal of making rates actuarially
sound over several years.
The program is already unsound, he argued, because it's not actuarially
supported, and it will stay broken until it is on actuarially
In addition, this Statement clarifies that when actuarially
determined OPEB measures are reported by an agent multiple-employer OPEB plan and its participating employers, those measures should be determined as of a common date and at a minimum frequency to satisfy the agent multiple-employer OPEB plan's financial reporting requirements.
The GRUT is actuarially
similar to the charitable remainder unitrust (see page 66).