Business Commons^™

A Study Note On The Actuarial Evaluation Of Premium Liabilities, Claudette Cantin, Philippe Trahan

Journal of Actuarial Practice (1993–2006)

Several approaches have been used to estimate premium liabilities. The emphasis of these approaches has been on unearned premium and deferred policy acquisition expenses (DPAE), as such items represent the largest components of premium liabilities. The purpose of this paper is to provide a framework for the evaluation of premium liabilities and to augment the actuarial literature. We define and review the individual components of premium liabilities as well as the regulatory requirements and Canadian Institute of Actuaries recommendations and standards of practices related to premium liabilities. We also present an actuarial approach for estimating equity in the unearned premium, …

Commissioners Annuity Reserve Valuation Method (Carvm), Keith P. Sharp

Journal of Actuarial Practice (1993–2006)

This paper describes the commissioners annuity reserve valuation method (CARVM) and highlights the fundamental contrast with insurance valuation. Numerical examples illustrate methods of applying CARVM to particular annuity designs. The application of NAIC Actuarial Guideline 13 on bailouts is given particular attention.

Credibility Calculations Using Analysis Of Variance Computer Routines, Dennis H. Tolley, Michael D. Nielsen, Robert Bachler

Journal of Actuarial Practice (1993–2006)

In this paper we present a method of calculating Buhlmann-Straub credibility factors using standard statistical techniques developed for the analysis of variance. Emphasis is placed on using readily available statistical packages such as SAS and SPSS. Additionally many other computational tools such as EXCEL can be programmed to make such calculations. An example and some sample SAS programs are provided.

Determination Of Optimal Premiums As A Constrained Optimization Problem, Farrokh Guiahi

Journal of Actuarial Practice (1993–2006)

A simple stochastic model of an insurer's underwriting and related investment operations is used to determine the optimal amounts of written premiums for one period for the insurer's book of business. The written premium for each class is determined by the solution of a constrained optimization problem. The insurer's objective function is the expected profit on a book of business over the period. The insurer has a safety constraint where a certain portion of capital and surplus can be depleted with a small probability. This paper provides an explicit solution for optimum expected profit and corresponding written premiums by classes. …

A Fuzzy Approach To Grouping By Policyholder Age In General Insurance, Richard J. Verrall, Yakoub H. Yakoubov

Journal of Actuarial Practice (1993–2006)

In general insurance, policyholder age is often treated as a factor with the number of levels requiring that the individual ages of the policyholders be grouped. Although the groups are usually defined by the existing underwriting structure, it should be investigated as part of any premium rating exercise that uses a model to assess past claims experience. It is possible that an incorrect grouping by policyholder age could bias the results of the risk premium estimation. On the other hand, it may not be computationally feasible to use separate ages in the premium model, making some form of grouping necessary. …

Multilife Premium Calculation With Dependent Future Lifetimes, Michel Denuit, Anne Cornet

Journal of Actuarial Practice (1993–2006)

Actuaries traditionally have calculated multi-life (joint life) premiums by assuming the independence of the future lifetimes of insured persons. Recent studies, however, demonstrate dependence of the future lifetimes of couples (such as husbands and wives). This dependence materially affects the values of multi-life annuities and insurances. Using the Frechet-Hoeffding bounds and Norberg's Markov model, we determine the effect of this dependence in lifetimes on the actuarial present values of a widow's pension benefit.

Recognizing Actuarial Assumptions, Victoria Stachowski, Alice Underwood

Journal of Actuarial Practice (1993–2006)

As assumptions underlie every aspect of actuarial calculations, actuaries must be aware of the assumptions they are using and understand their importance and the possible effects of changing assumptions on the results of their calculations. This paper explores the nature of assumptions in: (i) mathematical models, (ii) data selection, (iii) actuarial methods, and (iv) the business environment. We examine reasons for making assumptions such as convenience, tradition, indications in the data, or lack of data. In addition, we discuss (i) how actuaries can judge whether these reasons are sufficient; (ii) methods that can help actuaries quantify the impact of their …

Carvm And Naic Actuarial Guidelines 33 & 34, Keith P. Sharp

Journal of Actuarial Practice (1993–2006)

Annuity valuation under the NAIC Standard Valuation Law is determined according to methods different from those methods used for life insurance. The CARVM assumption of efficient policyholder selection is clarified under NAIC Actuarial Guidelines 33 and 34 to allow for non-elective (e.g., death) benefits. In particular, Actuarial Guideline 34 is oriented toward variable annuities and prescribes methods to be used in the presence of a minimum guaranteed death benefit. In this paper these methods are examined and illustrated with examples.

Linking It Applications With Manufacturing Strategy: An Intelligent Decision Support System Approach, Ravi Kathuria, Murugan Anandarajan, Magid Igbaria

Business Faculty Articles and Research

Research has indicated the importance of matching Information Technology (IT) applications or manufacturing systems with the competitive strategy of a company. Selection of the right type of IT application is, however, a challenging task. When a company, with a given dominant process structure, emphasizes two or more competitive priorities, such as quality, product flexibility, etc., an unaided manager faces a complex decision problem in choosing from alternative IT applications available in the areas of product design through distribution. In this paper, we developed an Intelligent Decision Support System (IDSS) that would assist managers with: assessment of the relative importance of …

The Cluster Connection - Volume 6, Issue 3 - Winter 1999, Nova Southeastern University

The Cluster Connection

No abstract provided.

Stakeholders, Social Responsibility, And Performance: Empirical Evidence And Theoretical Perspectives, Jeffrey S. Harrison, R. Edward Freeman

Management Faculty Publications

The management of competing stakeholder interests has emerged as a significant topic in the management literature. Related issues are the relationship between stakeholder management and the perception that a firm is socially responsible, and the performance implications of both stakeholder management and social responsibility. Theory and models surrounding these issues are abundant, but empirical research is in an early stage. This research forum reports six excellent efforts to tackle fundamental ideas about stakeholders, social responsibility, and performance.

Annual Report 1999, Houston Academy Of Medicine-Texas Medical Center Library

Annual Reports: 1943 - Present

The file contains the annual report for the library from 1999.

Estimating Tourism's Economic Impact In Nebraska Counties, Brian J. Hill

Faculty Publications

Every community interested in developing tourism to enhance or diversify their economy wants to know how much good tourism can do for them. While tourism is not the answer to every community's economic challenges, it can provide economic benefits in many cases. These economic benefits must then be compared to the social, cultural and environmental changes that tourism might bring in order to judge its acceptability in community economic development efforts.

Politicians, planners and citizens want to know just how important tourism is to their communities. While some economic benefits and costs are very difficult to calculate, total economic impacts …

Journal Of Actuarial Practice, Volume 7, Nos. 1 And 2, 1999, Colin Ramsay , Editor

Journal of Actuarial Practice (1993–2006)

ARTICLES

A Study Note on the Actuarial Evaluation of Premium Liabilities • Claudette Cantin and Philippe Trahan (First Prize)

Recognizing Actuarial Assumptions • Victoria Stachowski and Alice Underwood (Second Prize)

Commissioners Annuity Reserve Valuation Method (CARVM) • Keith P. Sharp (Third Prize)

CARVM and NAIC Actuarial Guidelines 33 & 34 • Keith P. Sharp

Multilife Premium Calculation with Dependent Future Lifetimes • Michel Denuit and Anne Cornet

A Fuzzy Approach to Grouping by Policyholder Age In General Insurance • Richard J. Verrall and Yakoub H. Yakoubov

Determination of Optimal Premiums as a Constrained Optimization Problem • Farrokh Guiahi

Credibility Calculations …

Functional Analysis: Deriving Systems Knowledge From Bibliographic Information Resources, R. Watts, A. Porter, Cherie C. Trumbach

Management Faculty Publications

Analyses of particular technology developments provide vital managerial intelligence. Framing of such analyses is key to maximize their managerial value. This paper presents a case analysis of automotive fuel efficiency technologies, posed as a functional analysis, rather than as a technology analysis. This functional perspective provides a systems frame of reference, yielding enhanced managerial knowledge. The case illustrates the use of bibliometric methods to glean systems intelligence from large abstract databases.

Organizational Culture, Tqm, And Business Process Reengineering: An Empirical Comparison, Edward W. Gore Jr.

WCBT Faculty Publications

The results of this study underscore the importance of organizational culture and suggest that TQM provides a way to build a culture that supports improvement. Top managers must focus on this role for TQM. Too often the need for quick returns on the effort leads to a focus on the "tools" and specific improvements and this emphasis can work against developing a supportive culture. Reengineering is an example of this phenomenon. Frustration with the time it takes to carry through on a TQM initiative caused firms to try reengineering, which, with its emphasis on outsiders and specialized personnel, works against …

1999-01-00 Newsletter, Morehead State University. Board Of Regents.

Morehead State Board of Regents Agenda Books and Meeting Minutes

No abstract provided.

A Study To Determine Selected Industry's Perception In The Savannah Metropolitan Statistical Area Regarding The Competencies Required Of Baccalaureate Industrial Technology Graduates In The Year 1998, Cary Alan Van Sickle

College of Graduate Studies: Theses & Dissertations (1964–2006)

No abstract provided.

Software Quality Function Deployment : A Method For Building Better Software, Dean Carruthers

Theses : Honours

In recent years it is becoming increasingly more apparent that quality even more than productivity is emerging as the key issue in the development of software. The quality systems currently employed by most software companies however arc simply not up to the task, traditional quality systems focus upon conformance to company standards, automation to eliminate human error and in some cases quality improvement teams. These traditional quality assurance methods lead to quality as defined from the organizations point of view, all work performed is done to their standards, however a what it is that makes a quality product is defined …

Department Of Fisheries Annual Report 1998/99, Department Of Fisheries, Western Australia

Department of Fisheries Annual Reports

In accordance with Section 62 of the Financial Administration and Audit Act 1985, I submit for your information and presentation to Parliament the Annual Report of the Fisheries Department for the financial year ending 30 June 1999.

The Annual Report of Fisheries WA has been prepared in accordance with the provisions of the Financial and Administration and Audit Act 1985 and Secon 263 of the Fish Resouces Management Act 1994.

Reinforce For Performance: The Need To Go Beyond Pay And Even Rewards, Fred Luthans, Alexander D. Stajkovic

Department of Management: Faculty Publications

Perhaps the most talked about, if not actually implemented. practical solution for making human resources more productive is pay for performance. Yet many researchers and practitioners doubt the true effectiveness of this approach. To help solve this controversy. we suggest drawing from reinforcement theory and behavioral management. This approach can be used to explain the simple statements: You get what you reinforce. but you do not necessarily get what you pay for. We first critically review the traditional pay for performance practices and address the question of whether rewards. not reinforcers. do more harm than good. Next, we discuss the …

A Rejoinder To Kenworthy-U'Ren Enlarging The Tent Of Service-Learning, Paul C. Godfrey

Faculty Publications

The Old Testament prophet/poet Isaiah speaks of the eventual redemption of the children of Abraham and uses a powerful metaphor to invite his followers to action: "Enlarge thy tent, and let them stretch forth the curtains of thy habitations: spare not, lengthen thy cords, and strengthen thy stakes" (Isaiah 54:2, King James Version). In the spirit of enlarging the tent and strengthening the stakes of the service-learning movement, Kenworthy-U'Ren's (1999, this issue) commentary to my article, "Service-Learning and Management Education: A Call to Action" (1999, this issue), proves a valuable and wonderful contribution. The strength of her commentary comes from …

Phase Transitions In Project Scheduling, Willy Herroelen, Bert De Reyck

Research Collection Lee Kong Chian School Of Business

Researchers in the area of artificial intelligence have recently shown that many NP-complete problems exhibit phase transitions. Often, problem instances change from being easy to being hard to solve to again being easy to solve when certain of their characteristics are modified. Most often the transitions are sharp, but sometimes they are rather continuous in the order parameters that are characteristic of the system as a whole. To the best of our knowledge, no evidence has been provided so far that similar phase transitions occur in NP-hard scheduling problems. In this paper we report on the existence of phase transitions …

Nebraska’S Lodging Tax, Brian J. Hill

Faculty Publications

Like many states, Nebraska charges a tax on overnight lodging accommodations. Sometimes called a bed tax or occupancy tax, this levy is available on a county by county basis as desired by county commissioners or supervisors. As of 1996, 45 Nebraska counties opted to impose a lodging tax on their guests. That same year, total government revenues from the lodging tax were over $6 million. The funds gathered in this manner provide the funding for the Nebraska Division of Travel and Tourism and for county marketing efforts.

Price And Non-Price Influences On Water Conservation: An Econometric Model Of Aggregate Demand Under Nonlinear Budget Constraints, Leonardo Corral, Anthony C. Fisher, Nile W. Hatch

Faculty Publications

This paper develops a model of residential water demand under a nonlinear budget constraint. The theoretical model for an individual consumer is adapted to yield an aggregate model that preserves the structure of the individual demand function, and that can be used with aggregate (water district level) data. The model is used to study the influence of pricing and non-price conservation programs on consumption and conservation behavior in three water districts in the San Francisco Bay Area, over a 10-year period that includes both drought and normal years. Empirical results show that pricing can be effective in reducing water consumption, …

1999 Faculty Senate Meeting Minutes & Supplementary Materials, Morehead State University. Faculty Senate.

Faculty Senate Records

Faculty Senate Meeting Minutes & Supplementary Materials for 1999.

Algorithms For Scheduling Projects With Generalized Precedence Relations, Bert De Reyck, Erik Demeulemeester, Willy Herroelen

Research Collection Lee Kong Chian School Of Business

The problem of scheduling projects under various types of resource constraints constitutes an important and challenging problem which has received increasing attention during the past several years. The bulk of the models and procedures designed for coping with these problem types aim at scheduling project activities to minimize the project duration subject to constant availability constraints on the required set of resources and precedence constraints that indicate that activities can only be started when all of their predecessors have already been finished. However, real-life project scheduling applications often involve more complicated types of precedence relations such as arbitrary minimal and …

A Classification Scheme For Project Scheduling Problems, Willy Herroelen, Erik Demeulemeester, Bert De Reyck

Research Collection Lee Kong Chian School Of Business

The basic concern of scheduling is commonly described as the allocation of limited resources to tasks over time (Lawler et al. 1993, Pinedo 1995). The resources and tasks may take many forms. In project scheduling the tasks refer to the activities belonging to one or more projects. The execution of project activities may require the use of different types of resources (money, crews, equipment, …). The scheduling objectives may also take many forms (minimizing project duration, minimizing project costs, maximizing project revenues, optimizing due date performance,…). The result is a wide and steadily growing variety of problem types which motivates …

Where Do Resources Come From? A Model Of Resource Generation, Paul C. Godfrey, Hal B. Gregersen

Faculty Publications

Although the Resource-Based View of the firm (RBV) continues to gain centrality in the conversation of strategic management, several unanswered questions remain within the emerging paradigm. This article focuses on one of those questions. We propose a causal model of resource generation built around three central constructs: entrepreneurial ability, market context, and organizational context. Entrepreneurial ability generates new asset combinations that are valuable and unique, while market and organizational contexts preserve the value in these new asset combinations by providing barriers to imitation. We build a model and then consider three separate paths for generating idiosyncratic resources within a firm. …

Service-Learning And Management Education A Call To Action, Paul C. Godfrey

Faculty Publications

The private sector of United States society (private corporations) currently enjoys the moral authority to set the national agenda. Business schools, because they train future managers, can play a vital role in helping the private sector sustain that moral authority. Specifically, I argue that service-learning pedagogies offer management educators a way to incorporate citizenship skills and moral training into the traditional management curriculum. This article describes the concept of service-learning, reviews the current state of service-learning in management, and argues that service-learning can enhance both the technical capability and moral capability of students. Key issues for faculty members involved in …