For Insurers

Life and disability credit actuarial memo requirements

The actuarial memo should be prepared and signed by a qualified actuary and include the following:

  • Policy and certificate form numbers
  • Brief descriptions of the type of policy, benefits, general marketing method and issue-age limits
  • Target groups
  • Underwriting standards
  • Whether or not coverage is offered to all debtors not older than the applicable age limit
  • Whether or not premium rates exceed prima facie acceptable rates, and justification, if any are greater
  • Demonstration, including numerical examples, showing the relationship between rates and premiums
  • How the creditor will be instructed to apply rates to determine the correct premiums
  • Upward rate deviations require substantiating data, including experience data and a reserve demonstration
    • Support for the upward rate deviation should be reconciled with the insurer's credit insurance experience exhibit
  • Refund formulas
  • Signature of a qualified actuary with current date