Financial Accounting Standards Board (fasb) 115
Definition of "Financial accounting standards board (fasb) 115"
New rule entitled "Accounting for Certain Investments in Debt and Equity Securities," which requires most fixed maturity investments to be listed on the INSURANCE COMPANY'S FINANCIAL STATEMENTS at MARKET VALUE beginning in 1994. This rule stipulates three categories of investment to be affected:
- Securities Available for Sale securities that are available for sale but are not considered securities held for trading.
- Securities Held to Maturity�securities that the insurance company has both the intent and ability to hold to maturity. Such securities would be listed on the company's financial statement at amortized cost.
- Trading Securities�securities that are bought for the purpose of trading in order to realize a profit. These securities are listed on the financial statements valued at market with any changes in the market value recorded on the income statement.
Popular Insurance Terms
Form of accident insurance that indemnifies or pays a stated benefit to insured or his/her beneficiary in the event of bodily injury or death due to accidental means (other than natural ...
Agent who is licensed and who markets and services insurance policies in a state in which he or she is not domiciled. ...
Additional amount of life insurance above that provided by the employee benefit plan (standard group life plan) that may be chosen by the employee. A limit is usually placed on this maximum ...
Event that results in bodily injury and/or property damage to a third party. A clause that is common to most liability insurance policies stipulates that all bodily injuries and/or property ...
In many health insurance and dental insurance policies, stipulation that, if the estimated cost of a recommended plan of treatment exceeds a specified sum, the insured must submit the plan ...
Conversion of form of ownership from a mutual insurance company to a stock insurance company. Interest in demutualization of life insurance companies surged in the early 1980s among many ...
Arrangement by which the insured agrees to incur a given degree of variability in the ultimate total costs associated with financing its losses. ...
in a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, should death occur due to an accident. In double indemnity, twice the face value of the policy ...
Company formed and operated without the profit motive as its normal business objective; normally sells and services health insurance policies. ...
Have a question or comment?
We're here to help.