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.