Actuarial Notes

Targeted Improvements Interactive Model

By Society of Actuaries · 2020

Study guide: Exam ILA-201U

An Excel workbook with models of deferred acquisition cost (DAC) and reserve calculations following FASB's Accounting Standards Update No. 2018-12 on targeted improvements to long-duration contract accounting, which the SOA syllabus lists as a reading. It replicates the examples in the ASU, adds a 20-year-term example for each, and sets questions with an answer key.

On the syllabus

  • Exam ILA-201U — Outcomes 1b; the interactive model, with no sheets or questions singled out (as the syllabus states it)

Instructions

  • Overview of the spreadsheet, expectations for candidates, the spreadsheet assignments (questions on the DAC example and on the reserve example) and tab descriptions.

FASB DAC Guidance

  • Key paragraphs from the ASU relevant to DAC.

DAC Example

  • DAC calculation under the group method that replicates the example provided in the ASU.

20 YT DAC

  • An additional DAC example that lets users test persistency scenarios and toggle the valuation year.

FASB Reserve Guidance

  • Key paragraphs from the ASU on the calculation of the reserve for traditional non-participating long-duration insurance contracts.

Reserve Example

  • A reserve calculation example that replicates the example provided in the ASU.

20 YT Reserve

  • An additional reserve example that lets users test mortality and lapse scenarios and toggle the valuation year.

Answer Key

  • Answers to the questions asked in the Instructions tab.

Sources

  • Targeted Improvements Interactive Model (Society of Actuaries, Excel workbook) — the document: the sheet names and the Instructions sheet's overview, assignments and tab descriptions (sha256 39305b896fd0cfd8650f3b9e9dfb66f69e5a89c5ec8610047e8434287227eae2); the other sheets were not read; the workbook names no author or date, so SOA as issuer is taken from where it is published, and the year 2020 from the file's location under the SOA's 2020 spring intro-study-notes folder
  • SOA Exam ILA-201U Syllabus, 2026-2027 — the reading's listing as "Targeted Improvements Interactive Model" with its link and the outcome it serves