[lmi-commits] [lmi] master f05e4b4 8/9: Confirm correctness of guideline premium calculations

[Greg Chicares]

branch: master
commit f05e4b43f1d4070410838da7f3ec6b297309f6b9
Author: Gregory W. Chicares <gchicares@sbcglobal.net>
Commit: Gregory W. Chicares <gchicares@sbcglobal.net>

    Confirm correctness of guideline premium calculations
    
    Adding
      TgtPrem[t] * (LoadTgt[t] - LoadExc[t]) * aD[t]
    is the same as subtracting
      a_TargetPremium * (a_NetPmtFactorExc - a_NetPmtFactorTgt)
    
    The correctness of the latter calculation is readily seen in the
    spreadsheet referenced in gpt_test::test_spreadsheet_1(), where the
    reserve ("GAAV", column $AX) clearly endows at the maturity age for
    each "partly below target, and partly above" scenario.
---
 ihs_irc7702.cpp | 3 ---
 1 file changed, 3 deletions(-)

diff --git a/ihs_irc7702.cpp b/ihs_irc7702.cpp
index 623fdb1..d082059 100644
--- a/ihs_irc7702.cpp
+++ b/ihs_irc7702.cpp
@@ -768,9 +768,6 @@ double Irc7702::CalculatePremium
         +   std::min(ADDLimit, a_SpecAmt) * PvChgADD[a_EIOBasis][a_Year]
         +   a_BftAmt * PvChgMort[a_EIOBasis][a_Year]
         +       a_TargetPremium
-        // TAXATION !! Is this right? '7702.html' [14.3/5] says:
-        // + TgtPrem[t] * (LoadTgt[t] - LoadExc[t]) * aD[t]
-        // so perhaps the sign has been reversed.
             *   (a_NetPmtFactorExc - a_NetPmtFactorTgt)
         )
         /