Commissioners' Annuity Reserve Valuation Method - CARVM

AAA

DEFINITION of 'Commissioners' Annuity Reserve Valuation Method - CARVM'

A term denoting statutory cash reserves for annuities. CARVM can be calculated according to several different methods. The cash reserve of the annuity must be greater or equal to the value calculated by the CARVM. The CARVM is equal to the greatest net present value of all future guaranteed benefits.

INVESTOPEDIA EXPLAINS 'Commissioners' Annuity Reserve Valuation Method - CARVM'

CARVM calculations do not include expenses or lapses in policies. However, they do include any nonforfeiture benefits that exceed premiums that are required in the future. These reserves must be maintained by each annuity carrier according to state law.

RELATED TERMS
  1. Reserve Requirements

    Requirements regarding the amount of funds that banks must hold ...
  2. Capital Reserve

    A type of account on a municipality's or company's balance sheet ...
  3. Insurance

    A contract (policy) in which an individual or entity receives ...
  4. Annuity

    A financial product sold by financial institutions that is designed ...
  5. Reserve Tranche

    The proportion of the required quota of currency that each International ...
  6. Subaccount Charge

    Fees charged for the management of an investment fund.
RELATED FAQS
  1. No results found.
Related Articles
  1. Markets

    Burn Rate Key Factor In Company's Sustainability

    Be careful around companies with high cash burn rates. These investments can turn to ashes.
  2. Fundamental Analysis

    Spotting Profitability With ROCE

    This straightforward ratio measures whether a company is efficient, money-making or neither.
  3. Retirement

    Strategies To Build Your Retirement Portfolio

    Retirement indexes are designed to estimate how much an investor would need to have saved today to generate annual income in retirement, starting at 65.
  4. Investing

    What are Fixed-Income Securities?

    For a fixed-income security, the periodic return on the investment is the same throughout the life of the security. Principal is returned at the time of maturity. The payment can be in the form ...
  5. Professionals

    Monthly Pension Or Lump-Sum: Which Is Better?

    When a client is faced with the choice of a monthly pension or a lump-sum payment, which one is better? Here's a quick guide on how to decide.
  6. Professionals

    Immediate Annuities: What To Watch Out For

    Immediate annuities can provide substantially higher monthly payouts than other fixed-income instruments, but also have some key limitations.
  7. Investing Basics

    Guidance On Pairing Annuities, Target Date Funds

    The Treasury and the IRS have issued new guidance on pairing annuities with target date funds. Here's a look.
  8. Investing News

    Tips To Beat Inflation For Near-Retireees

    How can investors close to retirement protect the purchasing power of their savings? Here are some tips for near-retirees and their financial advisors.
  9. Savings

    Are Equity-Indexed Annuities Right For You?

    Equity-indexed annuities can be confusing to understand, but for conservative investors, they can be valuable savings plans.
  10. Home & Auto

    Watch Your Back In The Annuity Game

    Find out how to get the upper hand when dealing with this payout challenge.

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center