| The mechanical advantage of a system is defined as the ratio of the outforce to the inforce. |
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| Expected profit after renewals on inforce business would also be included in the expected profit category. |
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| Our modeling was done based on the current inforce block of business, i.e., no new entrants were assumed. |
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| The control would, at a minimum, identify the sources of the values used for the adjustment, the ways in which changes in the inforce volumes are accounted for, and who has reviewed and confirmed the manual adjustment. |
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| Analysis of gains from inforce operations separately by policy period, or at least between first policy period and subsequent policy periods, may be beneficial. |
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| The value of in-force business is the present value of future expected earnings on inforce business less the present value of capital required to support in-force business. |
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| As a result of this pattern, a stable LTD block with substantial inforce liabilities will likely be profitable but a rapidly growing block may not be profitable, due primarily to the strain on the rapidly growing liabilities. |
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