17-37 For life insurance companies,the distribution of premium income minus policyholder liquidations normally is predictable.

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Life insurance companies use actuarial science to predict the expected future cash flows from premiums and policyholder claims. This helps them to set premiums at a level that will allow them to pay out claims and still earn a profit. While there may be variability in actual premiums collected and policyholder liquidations, these fluctuations are generally accounted for in the actuarial models used by life insurance companies.

17-37 for Life Insurance Companies,the Distribution of Premium Income Minus