Business Commons^™

Funding Methods And Pension Plan Amendments, Keith P. Sharp

Journal of Actuarial Practice (1993–2006)

This paper considers the treatment of plan amendments under the individual entry age normal and projected unit credit methods. Alternative treatments are considered, and comments are made about their acceptability.

The Small Plan Audit Program: The Opinions Of The Court, Arnold F. Shapiro

Journal of Actuarial Practice (1993–2006)

One of the most important issues of recent years from the perspective of many pension actuaries is the IRS's small plan audit program. The program initially was expected to raise two-thirds of a billion dollars by targeting well-funded defined benefit plans with five or fewer participants. The focus of the audit was the assumed interest rate and the normal retirement age, both of which the IRS generally regarded as too low. While the focus of the audit was relatively narrow, the issue it raised was a funda mental one. The basic question was the extent to which the IRS could …

Global Social Security: How The Rules Are Changing In Certain Countries, Robert J. Myers

Journal of Actuarial Practice (1993–2006)

Social security programs (i.e., national pension systems) differ widely between countries. This is only natural, and desirable, because of varying social and economic conditions and philosophies. This paper discusses some of the general worldwide trends, such as the equal treatment of men and women, increases in the normal retirement age, projection of future costs, and the different philosophies of social security. Some of the interesting and unique changes recently made in selected countries-Canada, Chile, Eastern European countries, Germany, Japan, People's Republic of China, Saudi Arabia, Union of Soviet Socialist Republics, United Kingdom, and United States-are described.

A Critique Of Defined Contribution Plans Using A Simulation Approach, David M. Knox

Journal of Actuarial Practice (1993–2006)

During the 1980s there was a trend in many countries away from defined benefit plans toward defined contribution plans. This development means that the individual member bears the full investment risk in the preretirement period and the annuity rate risk at retirement, as no pension benefit (expressed as a percentage of salary) is provided. This paper, through the use of a stochastic model for both inflation and a range of investment returns, analyses the distribution of retirement incomes that will be produced from a defined contribution plan. The impacts of changing entry and exit ages, different investment strategies, alternative career …

Discussion Of Mark J. Browne's "The Definition Of Insurance: Implications For A Health Insurance Demand Model", Charles Fuhrer

Journal of Actuarial Practice (1993–2006)

No abstract provided.

Estimating The Effect Of Statutory Changes On Insured Casualty Losses Using Generalized Indicator Variables, Ruy A. Cardoso

Journal of Actuarial Practice (1993–2006)

Techniques for estimating future insured losses in casualty insurance typically assume consistency in the insurance environment over time. Statutory changes, however, can create sharp discontinuities in the loss-generating process, complicating the estimation of those losses. Using indicator variables and dummy variables allows for quantification of the effect of such discontinuities. Three examples from private passenger automobile insurance are presented to illustrate how these variables can be used.

The Definition Of Insurance: Implications For A Health Insurance Demand Model, Mark J. Browne

Journal of Actuarial Practice (1993–2006)

This paper uses data from the 1977-78 National Medical Care Expenditures Survey to evaluate five different measures of insurance: a family's expected out-of-pocket payment for medical care, the expected value of the indemnity (fee-for-service) benefits from an insurance policy for a family, the percentage of the expected loss that the insured pays, the policy premium, and the policy limit of coverage. The study provides information that can help us understand whose insurance coverage will change significantly as a result of health care reform. For example, it shows that those with low income (such as minorities, families headed by females, and …

On The Equivalence Of The Loss Ratio And Pure Premium Methods Of Determining Property And Casualty Rating Relativities, Robert L. Brown

Journal of Actuarial Practice (1993–2006)

There are two distinct stages in the property and casualty ratemaking process. First, there is the portfolio average rate change. Second, there is the adjustment of classification relativities. It is well known that the loss ratio and pure premium (also called the loss cost) methods are algebraically equivalent in the stage called the portfolio average rate change. This paper reviews the proof of this equivalence. Further, it is proved algebraically that the loss ratio and pure premium methods are also equivalent in calculating classification relativities (or differentials) if certain data requirements can be met. A short numerical example of this …

The Process Of Pension Forecasting, Michael Sze

Journal of Actuarial Practice (1993–2006)

This paper explains the process of pension forecasting. It discusses the common purposes and uses of pension forecasts, the major steps involved, and the principal limitations of these forecasts. Some insights into each stage of the forecasting process are provided. Among the stages discussed are: the background research to be performed; the selection of scenario assumptions; shortcuts used in the actual performance of the forecast; review of the forecast results; and communication of the forecast findings.

Discussion Of Patrick Butler's "Cost-Based Pricing Of Individual Automobile Risk Transfer: Car-Mile Exposure Unit Analysis", Ruy A. Cardoso

Journal of Actuarial Practice (1993–2006)

No abstract provided.

Book Reviews, Hoque A. Sharif

Journal of Actuarial Practice (1993–2006)

No abstract provided.

A New Approach To Modeling Excess Mortality, Peter D. England, Steven Haberman

Journal of Actuarial Practice (1993–2006)

This paper describes a complete framework for the statistical modeling of excess mortality, with particular reference to the experience of insured, impaired lives. The principal measure of excess mortality considered is the standardized mortality ratio. The modeling approach, based on the theory of generalized linear models, allows us to build models containing several explanatory variables. The statistical significance of these variables can be tested, and the effect of interactions between the variables can be assessed rigorously. The paper uses data drawn from the extensive, continuing investigation into the mortality of insured, impaired lives conducted by the Prudential Assurance Company (UK). …

Group Insurance, Charles Fuhrer

Journal of Actuarial Practice (1993–2006)

No abstract provided.

On Becoming A Cost Effective Company, Robert D. Shapiro, Barton H. Clennon

Journal of Actuarial Practice (1993–2006)

The 1990s financial services environment requires each life company to identify its distinct capabilities and competitive strengths and to build its future direction from these features. This demands a fundamental rethinking of traditional approaches to planning, organization, and financial management.

Cost-Based Pricing Of Individual Automobile Risk Transfer: Car-Mile Exposure Unit Analysis, Patrick Butler

Journal of Actuarial Practice (1993–2006)

Every mile traveled by a car transfers risk to its insurer. This paper posits that the product of a cents-per-mile rate based on class experience and the miles recorded on the car's odometer appropriately earns prepaid premium while the car is driven. Operation of a practical car-mile system is described briefly. To test the competing idea that driver-record pricing responds to known large differences in risk transfer, a model used to validate claim free discounts is reexamined with the car-mile as the measure of individual cost. Driver-record pricing is found to inflate car-year price-to-cost differences. Consequences of accident rate variability …

Ethical Issues, Helps, And Challenges: Perceptions Of U.S. Actuaries, Therese M. Vaughan, Robert W. Cooper, Garry L. Frank

Journal of Actuarial Practice (1993–2006)

This paper reports the findings of a survey of Fellows of the Casualty Actuarial Society (FCAS) to determine their perceptions of the key ethical issues and dilemmas facing the industry today and the factors they view as most helpful and challenging in resolving these dilemmas. The responses are compared to a previous survey of Fellows of the Society of Actuaries (FSA). The study finds that FSAs and FCASs tend to rank key ethical issues similarly and that both groups of actuaries tend to look first to their own personal values, second to certain factors in their business environment, and last …

Managing The Relative Volumes Of Participating And Nonparticipating Business In A Mutual Life Company, Robert G. Chadburn

Journal of Actuarial Practice (1993–2006)

Management decisions of a mutual life company involving the amounts and relative proportions of participating (with profits) and nonparticipating (without profits) business and the level of expenses are examined in relation to their effect on participating policyholders' returns. A particular expense ratio is defined that plays a key role in a framework for making such decisions. The sensitivity of participating policy returns to changes in each factor are analyzed. Companies with expense ratios (as defined) of less than 2 are shown to prefer a different strategy from companies with higher ratios. There is an incomplete tendency for the ratio to …

Life Insurance Applications Of Recursive Formulas, Timothy L. Giles

Journal of Actuarial Practice (1993–2006)

This paper discusses several practical applications of recursive formulas:

a) Traditional whole life-As an introduction, the well-known relationship between successive terminal reserves is reviewed. Recursive formulas are developed to calculate the reserves and the premiums;

b) Universal life-Recursive formulas are used both for the calculation of target premiums and reserves. Consideration is given to the TEFRA corridor;

c) Paid-up rider-A participating single premium rider that provides a level death benefit can be devised using an inherent one year term benefit. Recursive functions are used to determine the premium that precisely matures the rider.

Because the APL programming language is particularly …

1993 Agricultural Outlook & Nebraska Policy Issues, University Of Nebraska Agricultural Economics Department

Department of Agricultural Economics: News, Announcements, and Information

Introduction by Sam Cordes

The Development of the U.S. Economy – Wesley F. Peterson

North America Free Trade Agreement – Roy Frederick

The Significance of Free Trade Agreements in an Era of Declining Import Duties – Robert McGeorge

Implications of Foreign Agricultural Assistance for Nebraska Agriculture – Dale Anderson

Ag Finance and Credit Outlook – Larry Bitney

Projecting Production Costs for 1993 – Doug Jose

1993 Custom Rates Outlook – Ray Massey

U.S. Tractor Sales Demand – Dennis Conley

Wheat Outlook in 1993 – Lynn Lute

Outlook for Soybeans in 1993 – Lynn Lute

Corn Outlook in 1993 – Lynn …

Quality, Strategy, And Competitiveness, James Belohlav

College of Business Faculty and Staff Works

No abstract provided.

Journal Of Actuarial Practice, Volume 1, No.1, 1993, Colin Ramsay , Editor

Journal of Actuarial Practice (1993–2006)

ARTICLES

Global Social Security: How the Rules are Changing in Certain Countries • Robert J. Myers

On Becoming a Cost Effective Company • Robert D. Shapiro and Barton H. Clennon

The Process of Pension Forecasting • Michael Sze

Cost-Based Pricing of Individual Automobile Risk Transfer: Car-Mile Exposure Unit Analysis • Patrick Butler

Discussion • Ruy A. Cardoso & Richard G. WolI & Patrick Butler's Reply

A New Approach to Modeling Excess Mortality • Peter D. England and Steven Haberman

The Small Plan Audit Program: The Opinions of the Court • Arnold F. Shapiro

BOOK REVIEWS

A. Hoque Sharif reviews "Options …

Graduate Bulletin, 1993-1995, Moorhead State University

Graduate Bulletins (Catalogs)

No abstract provided.

An Investigation Into The Design And Implementation Of A Policies And Procedures Manual For Collegiate Financial Aid, Pam Jones Williams

Theses

This expository study will focus on the development of a Policies and Procedures Manual for Collegiate Financial Aid.

Collegiate financial aid is a complex, ever-changing field. As such, there is a pressing need for financial aid offices to develop, and adhere to, a set of financial aid policies and procedures which can be uniformly applied and consistently referred to by all staff members.

The total dollars involved in the financial aid process can be staggering: each year billions of dollars are awarded to students in the form of federal, state, and institutional scholarships, grants, and loans. It is no wonder …

Resource Allocation As An Outcropping Of Strategic Consistency: Performance Implications, Jeffrey S. Harrison, Ernest H. Hall Jr., Rajendra Nargundkar

Management Faculty Publications

Similarities in financial resource allocations across the lines of business of diversified firms may indicate corporate strategic consistency, which may lead to superior corporate performance. In support of this argument, the variance in R&D intensity across the lines of business of 96 diversified firms was found to be inversely related to industry-adjusted return on assets. However, no relationship was found for capital intensity. These results provide partial support for the usefulness of a resource-based approach to the study of diversification strategy.

Export Marketing Development Program Selection, Albert Phillip Bianchi Jr.

Theses and Dissertations in Urban Services - Urban Management

The purpose of this study was to determine if there is an arrangement of export development programs which could be utilized by state agencies to best serve the economic and social policy goals of states.

Quantitative and qualitative techniques were employed in conducting this research. Descriptive information was gathered from surveys of state export development agencies. A Delphi methodology was used to gain consensus from public managers about program goals and program effectiveness.

The research demonstrates that there are primary goals which states pursue, such as employment generation and providing exporter assistance, for which certain export promotion activities are considered …

Discovering The Unique Synergy Potential Of Undergraduate Research And Tourism Service Needs, Deirdre Gibbons, Brian J. Hill

Faculty Publications

This paper explores the needs and benefits for using undergraduates as a resource at tourism University Centers. The purpose of undergraduate tourism programs varies, but programs strive to combine theory with application, and research plays a role in this process. Undergraduates stand to benefit from the managerial and decision-making skills they can learn through research. The number of university tourism research centers has increased worldwide. These centers often function on small budgets and have limited research centers, yet their services and clientele · base are increasing. This paper explores how some universities have involved undergraduates in university tourism research, focusing …

Managing Russian Factory Workers: The Impact Of U.S.-Based Behavioral And Participative Techniques, Dianne H.B. Welsh, Fred Luthans, Steven M. Sommer

Department of Management: Faculty Publications

The new internationalization of the field of management has produced growing concern as to whether theories and techniques largely developed in the United States apply to other cultures. A within-subjects experimental design was used to analyze the impacts that three popular and successful techniques used in U.S. studies had on the performance of workers in the largest textile factory in the Russian republic of the former Soviet Union. Two techniques, providing extrinsic rewards and behavioral management, had significant,

1993 Faculty Senate Meeting Minutes & Supplementary Materials, Morehead State University. Faculty Senate.

Faculty Senate Records

Faculty Senate Meeting Minutes & Supplementary Materials for 1993.

The Influence Of Cohesive Groups On The Ethical Behavior Of Public Employees: An Analysis Of An Urban University, Patricia Bellin Strait

Theses and Dissertations in Urban Services - Urban Management

Ethics problems permeate all aspects of public agencies. This is especially true in urban areas where public workers have frequent interactions with large numbers of civilians. The results of unethical behavior often have very tangible effects with perhaps the most serious consequences being the deterioration of public services and the destruction of public trust.

This dissertation explores Milton Fisk's Group Ethics Theory which states that ethical behavior varies according to cohesive group membership. In order to investigate Fisk's theory, an ex post facto study was performed within a single urban university. The primary independent variable was group membership. Data was …

Diffusion Of Total Quality Management: An Organizational Self-Production Perspective, Baizhong Zhao

Engineering Management & Systems Engineering Theses & Dissertations

American industries are in the process of a quality revolution. Most companies are busy implementing Total Quality Management (TQM) programs. However, the experience of both Japanese and American companies indicates that successful TQM implementation depends on an understanding of implementation processes, which itself relies on an understanding of organizational self-organizing, for it is through this process that TQM gets diffused and becomes a core component of an organization's culture. Self-organizing is a so-called process-oriented approach, based on theory from cybernetics (Ashby, 1962; Steier & Smith, 1985; von Foerster, 1960), dissipative structure theory (Prigogine & Stengers, 1984), and chaos theory (Gleick, …