Mortality Example 1 Mortality experience, Male Preferred and Better Nonsmoker risks Company ABC Mortality Study Experience period: January 1, 2005 to December 31, 2009 Combined Traditional Life by Duration Gender: Male Tobacco Status: Nontobacco Underwriting Classes: Preferred and Super Preferred Expected Basis: 2008 VBT RR80 ANB Duration (All Ages Combined) 1 2 3 4 5 6 7 8 9 10 Total
Exposure Count Amount
Actual Claims Count Amount
Expected Claims Count Amount
400,529 431,808 418,887 361,296 252,048 168,320 140,376 63,528 21,072 -
111,219,768 78,142,845 112,634,297 67,740,750 53,451,750 22,512,600 19,849,500 9,627,750 5,544,000 -
82 104 103 107 92 47 69 20 8 -
21,215 22,140 25,092 16,957 16,335 8,395 10,020 10,506 2,160 -
87 120 92 103 86 62 62 34 21
24,034 21,702 24,861 19,319 18,164 8,237 8,782 5,200 5,405
2,257,864
480,723,260
631
132,821
666
135,704
Actual to Expected Ratio Count Amount 0.946 0.867 1.114 1.035 1.078 0.760 1.105 0.591 0.380 -
0.883 1.020 1.009 0.878 0.899 1.019 1.141 2.020 0.400 -
94.8%
97.9%
• If X = 20, # claims for sufficient data period must be > 100 • Sufficient data period = last duration at which # claims is 100 or higher = duration 4 NAIC LATF Conference Call, May 17, 2012 Copyright © 2012 by the American Academy of Actuaries All Rights Reserved.
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