Actuarial Glossary :: "The Mother of All Actuarial Glossaries"

Z

Zero Claim (G)

Another term for nil claim.

 

Zero Coupon Bond (A)

A Bond under which no Coupon payments are made. A single redemption payment is made at the end of the Term.

 

Zillmer Adjustment (F)

This is an addition made to the net premium in a net premium valuation so as to allow for initial expenses being higher than renewal expenses.

 

Zillmerisation (F)

This is a method for allowing for the uneven incidence of expenses in a net premium valuation. It involves an increase - Zillmer adjustment - to the net premium which has the effect of reducing the value of a contract at its first valuation and thereby reducing new business strain.

Zillmerised reserves are lower than unzillmerised reserves for the whole of the premium paying term of a contract.

Zillmerisation has no effect on the reserves for single premium policies or paid-up policies since these policies have no future premiums.

 

Zillmerised Reserves (D)

A method of calculating reserves in life insurance that allows (either partially or fully) for the initial expenses incurred when policies are issued.