ILA 201-U: In-force actions need a feasibility assumption
Changing a product’s future cash flows can involve operational, contractual and customer constraints. A projected management action is not useful unless its timing and authority are plausible.
Original practice scenario
In an original guarantee-risk scenario, compare a proposed hedge with a product change that cannot be applied to existing contracts. Record execution cost, basis risk and implementation timing. Explain which action can affect the existing portfolio and which applies only to new business.
Study check
Write the assumptions, the decision being supported and one limitation. Use the current course syllabus for the required terminology and scope; this introductory guide is not a complete course summary.
Reading sources
ActNet editorial guide · October 1, 2026 · Original illustrative examples.