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Table Reference
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Individual Disability Experience Committee, “Development of the 2012 IDEC Claim Termination Rate Table (Version 1.0)”, Society of Actuaries (2012). Accessed: May, 2013 from http://www.soa.org/files/research/exp-study/2012_idec_claim_termination_rate_table.pdf AND Individual Disability Experience Committee, “SOA IDEC 2012 Tables Workbook Version 1.0 Excel File”, Society of Actuaries (2012) Accessed: May, 2013 from http://www.soa.org/Files/Research/Exp-Study/soa_idec_2012_tables_workbook_excel.xls
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Comments
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Study Data: Table represents Version 1.0 and should be considered work in progress. Based on individual disability income (IDI) experience from 1990 to 2007 and contain no explicit margins for adverse deviations. One company’s policy and claim data was scaled down so as to represent only 40% of total exposure over the study period. Only Accident & Sickness (A&S) policies were included in the database used to calculate termination rates. Since not all of the contributors were able to split Claim Termination Rates (CTR’s) between deaths and recoveries, the 2012 Individual Disability Experience Committee (IDEC) CTR Table combines deaths and recoveries. The 85 Commissioner’s Individual Disability Table A (CIDA) CTR’s combine deaths and recoveries, as well. During the 1990’s, Individual disability income (IDI) companies learned that the claim experience of medical occupations was significantly different than that of the other white collar and professional occupations. Accordingly, “Class M” was introduced for all medical occupation classes, that is, doctors, surgeons, dentists, nurses, podiatrists, veterinarians, psychologists, psychiatrists, pharmacists, etc. Class 1 is the same as that used for 1985 CIDA except medical occupations have been excluded. All sales-related occupations have been assigned to Class 2, (for example: insurance producers, stockbrokers, commodity brokers, other sales). There were no changes to occupation classes 3 and 4 from those adopted for the 1985 CIDA tables. During the first ten years, duration of disablement is separated into weeks 1 to 13, months 4 to 60, and years 6 to 10. After the first ten years of disablement (i.e., the ultimate durations), the 2012 IDEC CTR Table varies only by attained age and gender (See SOA Table Identities 1683 and 1684). Methodology: Select period data separated into three durational periods: (1) Up to Month 24, (2) Month 25-60, and (3) Years 6-10. Each cohort separately graduated using Whittaker-Henderson Type B. The raw CTR’s (i.e., before graduation) were calculated by applying actual-to-expected CTR ratios from the IDEC claim database using 85 CIDA expected CTR’s. Then a 3-step process was used to graduate CTR’s by duration of disablement and age at disablement. Year 9 and year 10 CTR’s were blended with ultimate durations using the following weightings: (a) for year 9, 67% of select CTR plus 33% of ultimate CTR; (b) for year 10, 33% of select CTR plus 67% of ultimate CTR. NOTE: As the overall format of this table is “continuance”, the first sub-table has weekly data, the second sub-table has monthly data, and then the final sub-table has yearly data. Data Transcription Errors: None. Data Certified: 01/2014.
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