An applicant/insured may pay the premium to his or her insurance agent. How are premium balances due from an agent accounted for on an insurer's financial statements under statutory accounting principles (SAP)? - Answer>
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An applicant/insured may pay the premium to his or her insurance agent. How are premium balances due from an agent accounted for on an insurer's financial statements under statutory accounting principles (SAP)? - Answer>>> Premium balances due from agents are an admitted asset unless they are more than 90 days past due.
At year-end last year, Conservative Casualty Insurance Company had total assets of $360 million and total liabilities of $310 million. The company's net underwriting income last year was $5 million and net investment income was $3 million. Based on the accounting equation, what was Conservative Casualty's policyholders' surplus at the end of last year? - Answer>>> 50 million
Statutory accounting adopts a conservative approach to valuing most assets and liabilities, resulting in a conservative statement of policyholders' surplus. This approach assigns values as if the insurer were to immediately cease operations. This approach is known as the - Answer>>> Liquidation perspective.
Which one of the following statements about various schedules to the National Association of Insurance Commissioners (NAIC) Annual Statement is true? - Answer>>> Schedule F provides information the insurer's reinsurance arrangements, including reinsurance assumed and reinsurance ceded.
Under statutory accounting, the immediate effect of a property and liability insurance company writing a new insurance policy is - Answer>>> A drain on policyholders' surplus.
Generally accepted accounting principles (GAAP) and statutory accounting principles (SAP) vary with regard to income reporting. GAAP requires unrealized investment gains and losses, foreign currency translations, and changes in minimum pension liabilities to be added to net income to determine an income measure. SAP does not require calculation of this income measure. This income measure computed under GAAP is called - Answer>>> Comprehensive income.
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