Statutory Accounting
Definition of "Statutory accounting"
Rules that insurance companies must follow in filing an annual financial statement known as the convention blank, with state insurance departments. The reported financial condition of an insurance company can differ markedly depending on whether statutory accounting rules or generally accepted accounting principles (gaap) are used in preparing financial statements. In general, statutory accounting is more conservative than GAAP because it tends to overstate expenses and liabilities while understating income and assets.
Popular Insurance Terms
Act passed by Congress in 1991, the purpose of which is to make it easier for consumers to compare deposit accounts among savings institutions (SI). Some of the act's more important ...
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Retirement payments to be credited for future years of service with an employer. ...
Loading to the burning cost ratio for a reinsurer's expenses, profit, and to build a reserve to meet unusually large claims. ...
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Based on historical loss experience, from which future loss experience is predicted. ...
Termination of coverage in insurance. ...
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