Református ujság - Fraternity-Testvériség, 1940 (18. évfolyam, 1-12. szám)
1940-05-01 / 5. szám
26 TESTVÉRISÉG ÉRTÉKELŐ JELENTÉS - VALUATION REPORT Made by The Hungarian Reformed Federation of America as of December 31, 1939, to the Insurance Department of the District of Columbia pursuant to the requirements of law. Do the laws of the society provide for the segregation and trusteeing of the reserves or funds of any class or classes of certificates excepting juvenile certificates? If so, specify same: None. Also attach a copy of. such provision to the Valuation Report. Was such segregation and trusteeing of reserves or fund made in accordance with, pursuant to, or under the express authority of, the statutes of any State? Answer: None. If so, specify the State and give the reference to the particular statutory provision. Answer: None. Does the society issue separate certificates promising disability benefits? Answer: Yes. If so, specify same. Answer: Sickness Benefits. Are the net contributions for disability benefits kept in a fund separate from all other benefit and expense funds? Answer: Yes, If so, state the increase, or decrease, of the funds in the year 1939. Answer: $2,008.53. (Decrease.) How many assessments were actually collected during each of the last five years? Answer: Twelve. 1939 lz38 1937 1936 1935 Death 0 0 0 0 0 Disability 0 0 0 0 0 Expense 0 0 0 0 0 Combined death, disability and expense 12 12 12 12 12 Date when the Society last changed the number of regular assessments to be collected each year. Answer: Jan. 1, 1928. What proportion of first and subsequent years’ contributions may be used for management expenses? Answer: First year Loading. Subsequent years Loading. Are there any reserve liens (not certificate loans or premium loans) outstanding against certificates in force? Answer: Yes. If so, state face amount and rate of interest charged. Answer: Were the full reserve liens and interest thereon deducted in all instances during the year in the payment of claims and other benefits? Answer: Yes. Was the amount or basis of reserve liens or rate of interest changed in any way during the year? Answer: No. Are certificates liens or loans or premium loans granted? Answer: Yes. If so, state conditions and amount of each class of liens or loans outstanding. Answer: $143,086.97. Also state the amount of liens or loans outstanding at each rate of interest. Answer: AH at 5%. I Hereby Certify to the correctness of the foregoing answers and to the correctness of items 36, 47 and 49 of the Valuation Exhibit. Stephen Molnár, Secretary. A synopsis of the forms of certificates and the formulas employed for valuing the benefits and contributions under each form, together with the amount of insurance in force, must be given by the actuary or accountant with answers to the following questions: State the method of valuation used (whether level net premium, full preliminary term, straight modified preliminary term, Illinois Standard, etc.). Answer: Modified Preliminary Term and Illinois Standard. Has the Society during the past five years for any class of certificates changed its valuation procedure or formulae so as to affect its solvency percentage? No. Did the Society exclude from the valuation required in schedule A any suspended certificate which the members under the By-Laws was eligible for reinstatement without evidence of insurability? Answer: No. State the Mortality and Interest Assumptions employed in the Valuation. Answer: fUse schedule A on last page.) a. ) Have the negative reserves on individual certificates been eliminated from the Valuation Exhibit? Answer: No negative reserves. b. ) What is the total amount of negative reserves on individual certificates? Answer: None. The term, “Negative Reserve,” refers to the excess of the present value of the future net contributions over the present value of the promised benefits. c. ) Does the Society charge redundant net rates of contribution, i. e., net rates in excess of the tabular net rates (on the basis of the mortality table and interest assumptions used in the valuation)? Answer: No. e. ) If a society, which uses tabular values in making its valuation, charges net rates of contribution lower than the tabular net rates (on the basis of the mortality table and interest assumptions used in the valuation), it must set up an additional reserve to cover the deficiency in such rates calculated on a basis not less than one providing for the accumulation as a pure endowment under a level net annual rate of contribution of a sum at the end of not more than 20 years from the issue of each certificate equal to the present value at the time of the difference between the net rate charged under each certificate and the tabular net rate of contribution used in the valuation of the same certificate. f. ) Has the requirement of item 26 (c) been complied with? Answer: If so, on what basis was the deficiency reserve calculated? Answer: g. ) State the amount of such deficiency reserve, if any. Answer: None. h. ) Yes. In the determination of the ratio per cent of assets to liabilities, according to the method of valuation prescribed by the Fraternal Insurance Law of the State of Mihchigan; there must be eliminated the funds not available for the payment of future claims under contracts of insurance and the “non-admitted assets” other than certificate liens, loans and interest thereon; provided that the total of such indebtedness on any certificate included in the Valuation Exhibit shall not be greater than the excess of the present value of the promised benefits over the present value of the future net contributions under said certificates, as shown by the method of valuation assumed by the society, in accordance with the laws of the State of Michigan. Have the above requirements been complied with? Answer: Yes.
