[lmi-commits] [lmi] master 5ee5f15: Note that DB_MinPmt is not implemented

[Greg Chicares]

branch: master
commit 5ee5f15d9217ed76c6f97d5e1be45eb811935309
Author: Gregory W. Chicares <address@hidden>
Commit: Gregory W. Chicares <address@hidden>

    Note that DB_MinPmt is not implemented
    
    Products may prescribe a minimum payment amount in order to disallow
    tiny payments (of one cent, e.g.) that aren't worth the expense of
    accepting. This makes sense for an admin system that allows home office
    staff the discretion to override such limits (although the current trend
    is to replace clerical jobs with automation). A case can be made that
    illustrations shouldn't depict any payment that actually would not be
    accepted, in order to avoid creating a false expectation.
    
    On the other hand, illustration systems don't allow human judgement, and
    therefore must allow either all exceptions, or none. And some exceptions
    really are reasonable. Suppose, e.g., that the lowest payment required
    to prevent lapse exceeds the guideline limit. If the product defines a
    minimum payment that's higher than the IRC 7702(f)(6) exception allows,
    then the minimum will certainly be overridden. Twenty-first-century
    insurers will need to codify such exceptions in their business rules.
    Simplistic old-style specifications are not to be taken literally.
---
 dbnames.xpp | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/dbnames.xpp b/dbnames.xpp
index 72c8b32..c880700 100644
--- a/dbnames.xpp
+++ b/dbnames.xpp
@@ -306,7 +306,7 @@
 {DB_TgtPremTable,DB_Topic_Premiums,"TgtPremTable","Annual target premium rates 
per $1 (index in mortality table database)",}, \
 {DB_TgtPremFixedAtIssue,DB_Topic_Premiums,"TgtPremFixedAtIssue","Target 
premium set forever at issue: 0=no, 1=yes",}, \
 {DB_TgtPremIgnoreSubstd,DB_Topic_Premiums,"TgtPremIgnoreSubstd","Target 
premium ignores substandard rating: 0=no, 1=yes",}, \
-{DB_MinPmt,DB_Topic_Premiums,"MinPmt","Minimum initial payment",}, \
+{DB_MinPmt,DB_Topic_Premiums,"MinPmt","Minimum initial payment [not 
implemented]",}, \
 {DB_Topic_SecondaryGuarantees,DB_FIRST,"Secondary 
guarantees","Secondary-guarantee options and parameters",}, \
 {DB_NoLapseMinDur,DB_Topic_SecondaryGuarantees,"NoLapseMinDur","Minimum number 
of years no-lapse guarantee remains in effect if premium requirement 
satisfied",}, \
 {DB_NoLapseMinAge,DB_Topic_SecondaryGuarantees,"NoLapseMinAge","Minimum age to 
which no-lapse guarantee remains in effect if premium requirement satisfied",}, 
\