FIMMAS provides the ability to extract policy valuation information required for valuation calculations and reports as of the valuation date. This enables the user to run valuation calculations and reports without hindering day-to-day policy administration activities. Valuation extract files may be retained on the system—or on backup media—as long as needed. Valuation extract files from two or more reporting periods can be on the system at the same time to facilitate comparative analysis.
FIMMAS supports CRVM and Net Level reserves. When defining a plan, users specify the reserve basis. The tax reserve basis for a plan can vary by era. There is no need to establish different plan codes for different eras.
The reasons for each coverage or rider may be separately specified. Reserves may be calculated from mean or terminal reserve factors; or may be based on tabular cash value, accumulated fund value, surrender value, or unearned premium (gross or Rule of 78). Reserve factors are stored in rate tables. Factors can be generated outside FIMMAS, saved in a standard spreadsheet or ASCII file format, and uploaded into FIMMAS. Factors can also be maintained using FIMMAS screens.
FIMMAS provides a full battery of valuation reports for Statutory NAIC Reporting, Tax Reserves, and GAAP Reserves. This includes reserves and liabilities corresponding to Exhibits 7, 8, 9, 10, and 11 of the U.S. Statutory Annual Statement. FIMMAS also provides Premium Accruals (Due, Deferred, Advance, Unearned) on a gross or net basis, and Policy Exhibit, Schedule "T" Premium Distribution, and State Page information.
FIMMAS includes GAAP factor tables for both reserves and premiums. This includes breakdowns of Benefit Reserve, Deferred Acquisition Cost, Expense, and Deferred Profit components. FIMMAS provides reserve, premium, and FASB 97 reports for use in GAAP financial statements.
FIMMAS also provides valuation extracts for integration with external valuation or reporting systems.
Guideline Premium Compliance
For plans that are qualified as life insurance under the Guideline Premium/Corridor Test, FIMMAS checks the Guideline Premium Limit each time a premium transaction is processed. The Guideline Premium Limit is the maximum premium that can be paid per year according to federal regulations.
The Guideline Premium Limit is calculated by the system based on historic guideline premium information. If a premium transaction will cause actual premiums applied on the contract to exceed the Guideline Premium Limit, the system provides a descriptive warning message in the Premium Receipts Journal.
Valuation for Reinsured Amounts
FIMMAS includes processes for valuation of reinsured amounts. The reinsurance contract records are copied to the Valuation module as of the valuation date. The reinsurance treaty rules include reserve calculation rules and tables. All calculated reinsurance reserve and premium values are stored in contract reinsurance valuation records. Reports for the various reinsurance exhibits are generated from these valuation records and from accounting records.
The FIMMAS Valuation module provides calculations and reports needed for Claim Reserves. Contract and claim records are copied to the Valuation module as of the valuation date. These "frozen" contract and claim records are used to calculate claim reserves for pending life claims and for repetitive payment (waiver, disability, annuity) claims. Reserve calculations are done for amounts due and unpaid as of the valuation date and for the present value of amounts not yet due. All claim reserve calculations are controlled by rules and tables defined at the benefit level. All calculated reserves are stored in contract valuation records. Reports for the claim exhibits are generated from these valuation records and from accounting records.