State of Connecticut

Exhibit C

ANALYSIS OF LIFE INSURANCE PROGRAM - STATE OF CONNECTICUT
1995/1996 1994/1995 1993/1994 1992/1993 1991/1992 1990/1991
Actual Actual Actual Actual Actual Actual
1. Fund Balance (Deficit) Beginning of Year ($1,252,355) ($900,156) ($399,793) ($477,087) $422,171 $328,210
2. Revenues
(a) Premiums $10,688,428 $10,398,488 $9,573,312 $8,815,517 $8,885,230 $8,771,556
(b) State Payments for Expense Charges 0 0 0 0 0
(c) Interest Earned on Premium Waiver Reserve 257,501 226,847 229,325 329,330 381,504 553,163
(d) Interest on Cash Flow & Claim Reserve 70,047 83,338 52,900 66,048 79,092
* (e) Interest on Premium Stabilization Reserve 0 0 0 0 0
(f) Total Revenues $11,015,976 $10,708,673 $9,855,537 $9,210,895 $9,345,826 $9,324,719
3. Benefits
(a) Paid Life Insurance Claims $9,074,702 $10,362,700 $9,686,300 $8,817,500 $9,885,400 $9,106,499
(b) Interest Paid on Delayed Claims 43,002 36,643 49,783 43,137 67,899 107,537
(c) Total Benefits $9,074,702 $10,399,343 $9,736,083 $8,860,637 $ 9,953,299 $9,214,036
4. Change in Reserves
(a) Unpaid Claim Reserve $29,715 $126,401 $282,402 $169,341 $11,367 $49,967
(b) Premium Waiver Reserve (263,220) (83,322) (180,352) (425,646) (195,556) (486,027)
(c) Premium Stabilization Reserve 0 0 0 0 0 0
(d) Total Changes in Reserve ($233,505) $43,079 $102,050 ($256,305) ($606,360) ($436,060)
5. Expense Charges
(a) State Premium Taxes $240,490 $246,756 $239,333 $220,388 $ 222,131 $219,289
(b1) Conversion Charges - Administration 17,030 15,902 23,760 28,240 31,790 18,388
(b2) Conversion Charges - Premium Subsidy 68,120 63,608
(c) Administration, Risk & Profit 277,206 255,463 238,682 225,602 220,817 214,937
(d) Direct Charges for Specific Services 1,560 715 0 29,993 1,237 168
(e) Interest on Deficit 50,094 36,006 15,992 25,047 0 0
(f) Total Expense Charges $654,500 $618,450 $518.767 $529,270 $475,975 $452,782
6. Fund Balance End of Year $267,924 ($1,252,355) ($900,156) ($399,794) ($477,088) $422,171
-- Balance expressed as per $1000/mo.
RESERVE BALANCES
1995/1996 1994/1995 1993/1994 1992/1993 1991/1992 1990/1991
Projected Actual Actual Actual Actual Actual
1. Unpaid Claim Reserve $1,466,665 $1,340,264 $1,057,864 $888,523 $877,156
2. Premium Waiver Reserve 5,942,967 6,026,289 6,206,641 6,632,287 6,827,843
3. Premium Stabilization Reserve 0 0 0 0 0
4. Total Reserves $0 $7,409,632 $7,366,553 $7,264,505 $ 7,520,810 $7,704,999
COST OF INSURANCE - $1,000/MONTH
1. Basic Insurance: Employee Share $0.433 $0.433 $0.433 $0.433 $0.433 $0.433
State Share 0.097 0.097 0.067 0.047 0.047 0.047
Total 0.530 0.530 0.500 0.480 0.480 0.480
State Share - Retired 0.530 0.530 0.500 0.480 0.480 0.480
2. Supplemental Insurance (EE pay-all) 0.550 0.550 0.520 0490 0.490 0.490


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