[lmi] Usage of the term "IRR"

[Greg Chicares]

An experienced colleague in BOLI sales said brokers frequently ask him
whether the IRR columns produced by lmi are "annual" or "cumulative". I
hadn't realized this, but some insurance salespeople make this distinction:

https://web.archive.org/web/20151114011618/http://www.producersweb.com/r/pwebmc/d/printFocus/?pcID=35c8289ebd5948768f7f4375302161fe
| 1. Annual IRR on cash values — This is the annual increase in cash values
| from year to year. ... This return is calculated by dividing the end of
| year cash value by the previous end of year cash value plus any premiums
| paid, minus one.
| ...
| 2. Cumulative IRR on cash values ... This calculation incorporates all
| cash inflows (premiums) and outflows (withdrawals/surrenders/loans).

When lmi calculates cash-value IRR, it applies the second of those two
concepts--the definition normally given in financial-mathematics textbooks.
In particular, lmi's IRR for year N encompasses cashflows from the issue
date through the end of the Nth year. (In the first year only, this happens
to coincide with the first concept.)

To avoid confusion, we'll change column headings in PrintCellTabDelimited():

-        ,"IrrOnSurrender"
-        ,"IrrOnDeath"
+        ,"CumulativeIrrOnSurrender"
+        ,"CumulativeIrrOnDeath"

because that report is what occasions these repeated inquiries. Perhaps
this concern is limited to brokers in this market who use this particular
report (captioned "FOR BROKER-DEALER USE ONLY") for product comparisons.
We do not propose to change any other report at this time; if anyone asks
for a similar change in illustrations presented to clients, we should first
consider whether it would be better to give a thorough explanation in the
list that defines "column headings and key terms".