3.3.1 Closed-Group Projection of Current Contractual Residents or Members
The actuary should use a population projection that is performed solely with respect to current contractual residents or members on the valuation date. The actuary should project the surviving contractual residents’ or members’ movements through various levels of care until contract termination. This projection excludes new contractual residents, new members, and any non-contractual residents.3.3.2 Assets
The actuary should estimate the actuarial present value of each of the following: the future periodic fees (described in section 3.6.1), the future additional fees and third-party payments (described in section 3.6.2), and the physical property for assets currently in service (described in section 3.6.3).The actuary should reflect in the actuarial balance sheet other assets from the accounting balance sheet as appropriate, in the actuary’s professional judgment. These assets generally include such items as cash and investment balances, current receivables, and other items not specifically reflected in the above guidance.
3.3.3 Liabilities
The actuary should estimate the actuarial present value of each of the following: the future use of physical property (described in section 3.6.4), the future operating expenses (described in section 3.6.5), the future refunds due to refund guarantees (described in section 3.6.6), and the long-term debt (described in section 3.6.7).The actuary should reflect in the actuarial balance sheet other liabilities from the accounting balance sheet as appropriate, in the actuary’s professional judgment. These liabilities generally include such items as current payables, prepaid contractual resident or member deposits, fees paid in advance, short-term debt obligations, and other items not specifically reflected in the above guidance.
