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Net premium valuation method

The standard actuarial procedure for valuing liabilities where the actual stream of premiums due under a policy is replaced by a notional stream of premiums calculated according to the rates of interest and rates of mortality and morbidity used in the process of valuation, which would have been sufficient at the outset to provide for the benefits under the contract according to the contingencies upon which they are payable, exclusive of any additions for profits, expenses or other charges.