Statutory Requirements
Standards set by the various state regulatory authorities that determine how financial statements must be prepared for regulators. The states are responsible for making certain that insurers will remain solvent and have enough set aside in reserves to pay future claims. To this end, they have devised statutory accounting principles that govern insurance company reporting. These requirements differ from generally accepted accounting principles (gaap). Among other things, statutory requirements include the setting of statutory reserves, and the immediate expensing of the cost of acquiring new business, rather than allowing insurers to spread the exposure over the life of the policy.
Popular Insurance Terms
Monetary value of the reputation of a business. Goodwill is an intangible asset and thus may be difficult to measure. ...
Employer, association, labor union, or other group ...
Policy used to provide the funds for buy and sell agreements under which an income payment or a series of income payments is paid to the buyer of the disabled partner's interest contained ...
Critical point in the total amount of claims paid above which the excess insurance policy pays a percentage (generally 80-100%) of the claims for any policy year experience. ...
Authority to act on behalf of an individual that terminates upon its revocation or death of that individual. ...
Coverage for extra expenses associated with the reconstruction of a damaged or destroyed building where zoning requirements mandate more costly construction material. This endorsement is ...
Death payment that increases with the age of an insured. Graded benefits may increase gradually and then level off, or may increase sharply before becoming level. This type of coverage is ...
Written statements on a form by a prospective insured about himself, including assets and other personal information. These statements and additional information, such as a medical report, ...
Coverage for automobile or aircraft operators if they are sued for negligently killing or injuring a passenger. The PERSONAL AUTOMOBILE POLICY (PAP) provides MEDICAL PAYMENTS INSURANCE for ...
Have a question or comment?
We're here to help.