What are FAS 60 products?

What are FAS 60 products?

FAS 60 Summary Long-duration contracts include contracts, such as whole-life, guaranteed renewable term life, endowment, annuity, and title insurance contracts, that are expected to remain in force for an extended period.

What are FAS 97 products?

FAS 97 defines investment contracts as policies “that do not subject the insurance enterprise to risks arising from policyholder mortality or morbidity.” These contracts are to be accounted for as “interest-bearing or other financial instruments.”

What FAS 91?

FAS-91 means Statement No. 91 under the Statements of Financial Accounting Standards issued by FASB, as modified or amended from time to time.

What is a short duration insurance contract?

Short-duration contract. The contract provides insurance protection for a fixed period of short duration and enables the insurer to cancel the contract or to adjust the provisions of the contract at the end of any contract period, such as adjusting the amount of premiums charged or coverage provided.

What does GAAP stand for in accounting?

Generally Accepted Accounting Principles
Generally Accepted Accounting Principles (GAAP or US GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting.

What are long duration contracts?

Long-duration contracts include contracts, such as whole-life, guaranteed renewable term life, endowment, annuity, and title insurance contracts, that are expected to remain in force for an extended period. Premiums from long-duration contracts are recognized as revenue when due from policyholders.

What are deposit type contracts?

As discussed in SSAP No. 50, deposit-type contracts are those contracts that do not subject the reporting entity to any risks arising from policyholder mortality or morbidity. Deposit-type contracts frequently grant policyholders significant discretion over the amount and timing of deposits and withdrawals.

What is an SOP Reserve?

• SOP 03-1 reserves are set up if the amounts assessed against the contract. holder each period for the insurance are assessed in a manner that is. expected to result in profits in earlier years and subsequent losses. • Definition of an assessment: If there is an explicit fee for a benefit, then.

What replaced FASB 91?

FASB Accounting Standards Codification
The SFAS have been superseded by the FASB Accounting Standards Codification (ASC). The codification is effective for interim and annual periods ending after September 15, 2009. All existing accounting standards documents are superseded by the ASC.

What is FAS 5 now called?

5: Accounting for Contingencies (FAS 5), the original FASB pronouncement, superseded by the substantively same FASB Accounting Standards Codification (ASC) subtopic 450 -20, Contingencies: Loss Contingencies, is a principal source of guidance on accounting for impairment in a loan portfolio under GAAP.

What is the difference between FAS 60 and FAS 120?

• But not all types of products are covered by FAS 60 –FAS 60 is the basis –FAS 97 and FAS 120 are amendments for special life products •FAS 97(issued in 1987) addresses – Universal Life Type Contracts (Unit Linked Products) –Limited Payment Contracts –Investment Contracts

What does FAS 60 short stand for in GAAP?

•FAS 60 short(cont.) – The premiums earned(“verdiente Prämien”) are that part of the premiums booked which belongs to the accounting period •They are determined using the unearned premium reserve (UPR)

What is statement of financial accounting standards No.60?

FAS 60 Summary This Statement extracts the specialized principles and practices from the AICPA insurance industry related Guides and Statements of Position and establishes financial accounting and reporting standards for insurance enterprises other than mutual life insurance enterprises, assessment enterprises, and fraternal benefit societies.

What is the contribution principle of FAS 120?

•FAS 120(issued in 1995) addresses participating life products with policyholders’ dividends according to the contribution principle 2.1 Overview Finanz. Führungsinfo. Teil 3; US GAAPDr. Ruprecht Witzel; FS 11 13 Content 2.1 Overview 2.2 FAS 60