Illustration & Disclosure Checker
Validates illustrations, disclosures and sales material against the certified parameter set and the governing guideline.
An illustration the actuary will decline to certify takes the product off the shelf, so every one gets read before it goes out. It reads against Actuarial Guideline XLIX-A for the indexed scale, an Alternate Scale parked in an appendix instead of running beside the illustrated one with equal prominence, a loan credited rate more than fifty basis points above the charged rate, and an illustrated rate still resting on last year's. Caps, participation rates and bonuses are declared elements, not filed rates, so what the certified table does not hold goes to the illustration actuary. It derives no rate of its own.
Authority
Prepare
Team role
Provides specialist analysis
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
Life & Annuity New Business
Desk workflow
Open the case and generate its requirement grid, order and reconcile evidence, keep the accelerated path under independent challenge, abstract the mortality picture for the underwriter who holds written authority, validate the illustration and disclosure package, assemble the best-interest and replacement file, then close the delivery requirements, capture the receipt that starts the free look, and hand a placed policy to inforce servicing with the underwriting rationale attached.
Collaboration
Separates preparation from review
Decision boundary
Assembles the work product; approval remains elsewhere.
Systems and capabilities involved
Illustration system output
iPipeline WinFlex Web and Hexure ForeSight ledgers
Certified parameter table
disciplined current scale parameters as certified for the product
Life form library
the filed form and its guaranteed minimum cap, floor and credited rate, by state and form version
Guideline and model regulation corpus
Model #582, AG 49-A as amended, ASOP No. 24, Model #613 notices
Ledger recomputation
re-derives the illustrated values from the certified parameters as a check
Policy administration issue record
Handoffs
What this role gives and receives
Capabilities offered
Illustration and disclosure exception list
Measures an illustration and its disclosure package against the certified parameter set and names each defect with its section.
- Receives:
- Illustration ledger, product parameters, sales material, signed forms, and the state and product context
- Returns:
- Exception list with section citations, the corrected package where the fix is mechanical, and the questions that need an actuary
Handoff to
Handoff to
Handoff to
Receives from
External handoff
Illustration Actuary
External handoff
Compliance officer
External handoff
Designated company officer certifying illustration formats
Context
What the role needs to do the work
- Current work
- The illustration or disclosure package under review, the certified parameter set it is measured against, and the exception list being built.
- Prior interactions
- Earlier versions of this case's illustrations, what changed between application and issue, and which exceptions compliance cleared.
- Policies and reference
- Model #582 self-support and lapse-support tests, AG 49-A benchmark and alternate scale mechanics, Buyer's Guide and annuity disclosure delivery rules, and state form versions.
- Working method
- Defect taxonomy by product type, and which defects are mechanical fixes rather than actuarial questions.
Illustrative workflow
How the work moves
Starting point
An indexed universal life proposal shows a multiplier account illustrated above the benchmark rate, with the Alternate Scale printed as a closing appendix.
- 01
Read the certified parameter table for the product and compare the Benchmark Index Account rate against the AG 49-A section 4B limit.
- 02
Test the multiplier account against its supplemental hedge budget and the hedge-budget-ratio test applying to policies sold on or after May 1, 2023.
- 03
Record the Alternate Scale placement defect under sections 3A and 7A, since equal prominence is a layout obligation rather than a footnote.
- 04
Check the illustrated cap against the guaranteed minimum in the filed form, find the declared parameter absent from the certified table, and raise it for the illustration actuary rather than inferring it.
- 05
Assemble the corrected package and the exception list with sections cited.
Result
A corrected illustration package and a two-item exception list, routed to the illustration actuary who certifies the disciplined current scale and to the compliance officer who clears the sales material.
Checks and boundaries
What must be tested or reviewed
- 01Seeded defects are caught with the guideline section named: an indexed rate above the lesser of the prescribed lookback mean and 145 percent of the Annual Net Investment Earnings Rate, a missing twenty-year historical index table, an Alternate Scale on its own page, and a loan credited rate seventy-five basis points above the charged rate.
- 02An illustration still resting on the prior year's indexed rate after the three-month re-determination window has closed is flagged rather than passed.
- 03A cap, participation rate or bonus is resolved against two sources only, the certified disciplined current scale table and the guaranteed minimum in the filed form. Strip the certified table out and the result is an escalation to the illustration actuary rather than an inferred cap; a compliance statement resting on a rate derived here fails the test.
- 04Delivery checks catch a policy issued other than as applied for where no revised illustration was signed, tested across term, indexed universal life and participating whole life.
Human authority
- The illustration actuary appointed by the board certifies the disciplined current scale. A designated company officer certifies that the illustration formats comply. The compliance officer clears sales material before use.
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