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[lmi] Expunge 'InforceSevenPayPremium'?


From: Greg Chicares
Subject: [lmi] Expunge 'InforceSevenPayPremium'?
Date: Wed, 08 Jul 2009 05:01:32 +0000
User-agent: Thunderbird 2.0.0.21 (Windows/20090302)

The value of 'InforceSevenPayPremium' is unused, and I can't
think of any use for it. Is there any reason not to expunge it?

7PP is set in exactly these cases:
 - issue
 - 1035 exchange
 - material change
 - reduction in benefits
of which the first two wouldn't use any such inforce value. In
the remaining cases, the formula is essentially the same:
  7Px * (bft - cash_value / Ax) [we're ignoring QABs]
But 7Px and Ax are what they are; bft is LDB; and cash_value is
'InforceAvBeforeLastMc'--so 'InforceSevenPayPremium' seems to
be unneeded here.

If it was intended to represent the seven-pay allowance already
consumed in a partially-completed contract year, I should think
that quantity would have to equal the last element of the vector
of amounts-paid history.

Material changes erase history; benefit reductions rewrite it.
Both involve notionally issuing a new contract. Nothing else can
change 7PP after issue. Have I missed something?

Because 'InforceSevenPayPremium' has been around for such a long
time and is actually supplied for inforce production, we might
want to consider keeping it, at least for a while, solely for the
purpose of testing the consistency of inforce input data.




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