When to Do Cash Flow Testing for Life and Health Insurance Companies (withdrawn)

Adopted as-is — accepted in the original. The Kazakhstan Chamber of Actuaries (KCA) adopts this Actuarial Standard of Practice in its original English form, as published by the Actuarial Standards Board (ASB), United States, without modification. The full original ASB text is reproduced below for reference. The Russian and Kazakh catalogue entries are KCA adaptations; in case of any discrepancy the original ASB text prevails.

REPEAL OF ACTUARIAL STANDARD OF PRACTICE NO. 14#

WHEN TO DO CASH FLOW TESTING FOR LIFE AND HEALTH INSURANCE COMPANIES#

Developed by the Life Committee of the Actuarial Standards Board

Repealed by the Actuarial Standards Board September 2001

Doc. No. 082

September 2001

TO: Members of Actuarial Organizations Governed by the Standards of Practice of the Actuarial Standards Board and Other Persons Interested in Cash Flow Testing for Life and Health Insurance Companies

FROM: Actuarial Standards Board (ASB)

SUBJ: Repeal of Actuarial Standard of Practice (ASOP) No. 14

This booklet notes the repeal of ASOP No. 14, When to Do Cash Flow Testing for Life and Health Insurance Companies .

Background#

To guide actuaries who needed to perform cash flow testing, the Actuarial Standards Board adopted ASOP No. 7, then titled Performing Cash Flow Testing for Insurers , in October 1988 (revised July 1991 and September 2001). In addition, in July 1990 the ASB adopted ASOP No. 14, When to Do Cash Flow Testing for Life and Health Insurance Companies , to provide guidance in determining whether or not to do cash flow testing in forming a professional opinion or recommendation.

As part of the project to look at all cash flow testing standards of practice, a task force of the ASB’s Life Committee reviewed ASOP No. 7 (titled, as of September 2001, Analysis of Life, Health, or Property/Casualty Insurer Cash Flows ), ASOP No. 14 ( When to do Cash Flow Testing for Life and Health Insurance Companies ), and ASOP No. 22 (titled, as of September 2001, Statements of Opinion Based on Asset Adequacy Analysis by Actuaries for Life or Health Insurers ). Relevant portions of ASOP No. 14 were incorporated within the 2001 revisions of ASOP No. 7 and ASOP No. 22.

At its September 2001 meeting, the ASB voted to adopt the revised ASOP No. 7 and ASOP No. 22 and to repeal ASOP No. 14.

ASOP No. 14 is repealed for any work performed on or after April 15, 2002.

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