CRVM standards are set with company solvency in mind.
Reserves start negative and move to 0 end of year 1.
Are they positive at t=0 with the DPA?
Otherwise - how does a negative reserve in year 1 help ensure solvency? Is CRVM saying nobody dies during the first policy year?
Reserves start negative and move to 0 end of year 1.
Are they positive at t=0 with the DPA?
Otherwise - how does a negative reserve in year 1 help ensure solvency? Is CRVM saying nobody dies during the first policy year?
CRVM reserves