Exhibit D
| The Analysis of Life Insurance Exhibit displays the cumulative program results for the last five policy periods. The results of this review show a surplus of $1,520,279 has developed for the year ending July 1, 1996 bringing the cumulative balance as of July 1, 1996 to $267,923. | ||||||
| 1995/1996 | 1994/1995 | 1993/1994 | 1992/1993 | 1991/1992 | ||
|---|---|---|---|---|---|---|
| Actual | Actual | Actual | Actual | Actual | ||
| 1. Fund Balance Beginning of Year | ($1,252,355) | ($900,156) | ($399,793) | ($477,087) | $0 | |
| 2. Revenues | ||||||
| (a) Premiums | $10,688,428 | $10,398,488 | $9,573,312 | $8,815,517 | $8,885,230 | |
|
$10,337,772 | $10,037,397 | $9,225,413 | $8,536,832 | n/a | |
|
$350,656 | $361,091 | $347,899 | $278,685 | n/a | |
| (b) State Payments for Expense Charges | 0 | 0 | 0 | 0 | 0 | |
| (c) Interest Earned on Premium Waiver Reserve | 257,501 | 226,847 | 229,325 | 329,330 | 381,504 | |
| (d) Interest on Cash Flow & Claim Reserve | 70,047 | 83,338 | 52,900 | 66,048 | 79,092 | |
| * (e) Interest on Premium Stabilization Reserve | 0 | 0 | 0 | 0 | 0 | |
| (f) Total Revenues | $11,015,976 | $10,708,673 | $9,855,537 | $9,210,895 | $9,345,826 | |
| 3. Benefits | ||||||
| (a) Paid Life Insurance Claims | ||||||
|
$8,816,700 | $10,252,700 | $9,686,300 | $8,817,500 | $9,885,400 | |
|
$215,000 | $100,000 | ||||
| (b) Interest Paid to Beneficiaries on Delayed Claims | 43,002 | 36,643 | 49,783 | 43,137 | 67,899 | |
| (c) Total Benefits | $9,074,702 | $10,399,343 | $9,736,083 | $8,860,637 | $ 9,953,299 | |
| 4. Change in Reserves | ||||||
| (a) Unpaid Claim Reserve | $29,715 | $126,401 | $282,402 | $169,341 | $11,367 | |
|
$31,176 | $75,848 | ||||
|
-$1,461 | $50,553 | ||||
| (b) Premium Waiver Reserve | (263,220) | (83,322) | (180,352) | (425,646) | (195,556) | |
| (c) Premium Stabilization Reserve | 0 | 0 | 0 | 0 | (422,171) | |
| (d) Total Changes in Reserve | ($233,505) | $43,079 | $102,050 | ($256,305) | ($606,360) | |
| 5. Expense Charges | ||||||
| (a) State Premium Taxes | $240,490 | $246,756 | $239,333 | $220,388 | $ 222,131 | |
| (b1) Conversion Charges - Administration | 17,030 | 15,902 | 4,752 | 5,648 | 6,358 | |
| (b2) Conversion Charges - Premium Subsidy | 68,120 | 63,608 | 19,008 | 22,592 | 25,432 | |
| (c) Administration, Risk & Profit | 277,206 | 255,463 | 238,682 | 225,602 | 220,817 | |
| (d) Direct Charges for Specific Services | 1,560 | 715 | 0 | 29,993 | 1,237 | |
| (e) Interest on Deficit | 50,094 | 36,006 | 15,992 | 25,047 | 0 | |
| (f) Total Expense Charges | $654,500 | $618,450 | $517,767 | $529,270 | $475,975 | |
| 6. Fund Balance End of Year | $267,924 | ($1,252,355) | ($900,156) | ($399,794) | ($477,088) | |
| RESERVE BALANCES | ||||||
| 1995/1996 | 1994/1995 | 1993/1994 | 1992/1993 | 1991/1992 | ||
| Projected | Actual | Actual | Actual | Actual | ||
| 1. Unpaid Claim Reserve | $1,496,380 | $1,466,665 | $1,340,264 | $1,057,864 | $888,523 | |
| 2. Premium Waiver Reserve | 5,679,747 | 5,942,967 | 6,026,289 | 6,206,641 | 6,632,287 | |
| 3. Premium Stabilization Reserve | 0 | 0 | 0 | 0 | ||
| 4. Total Reserves | $7,176,127 | $7,409,632 | $7,366,553 | $7,264,505 | $ 7,520,810 | |
| COST OF INSURANCES - $1,000/MONTH | ||||||
| 1. Cost/$1,000 - Basic Life | ||||||
| (a) Employee Share | $0.433 | $0.433 | $0.433 | $0.433 | $0.433 | |
| (b) State Share - | 0.097 | 0.097 | 0.067 | 0.047 | 0.047 | |
| (c) Total | 0.530 | 0.530 | 0.500 | 0.480 | 0.480 | |
| 0.530 | 0.530 | 0.500 | 0.480 | 0.480 | ||
| 2. Cost/$1,000 - Supplemental Insurance | 0.550 | 0.550 | 0.520 | 0490 | 0.490 | |
(Employee pay all)
* Please note that Aetna's accounting methods do not consider interest credits as revenue
items, but rather as expense credits.
** Aetna's accounting methods do not include conversion charges as expense items but
rather a part of incurred claims costs.
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