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
Person covered by insurance under a blue cross or blue shield plan. ...
Life is unpredictable so to compensate this, people have invented insurance. Insurance deals with unforeseen events. Sometimes insurance companies cover only a part of your losses and a few ...
Attachment to a general liability policy thereby eliminating the exclusion of property under the care, custody, and/or control of an insured. Without this endorsement there would be no ...
Life insurance policy under which its face value is payable only if the insured survives to the end of the stated endowment period; no benefit is paid if the insured dies during the ...
Coverage in the event of death due to accident, usually in combination with dismemberment insurance. If death is due to accident, payment is made to the insured's beneficiary; if bodily ...
Casualty losses of high severity. ...
Insurance policy in force only after the insurance company approves the application. Today, most companies use the insurability conditional premium receipt. ...
Coverage on an all risks basis, subject to listed exclusions, for personal property of the insured dealer that is used in normal business activities. Goods that have been sold on an ...
Right to sell a given security at a stipulated price until a future expiration date. For example, assume the "None-Do-Well" company's stock has a market value of $20. Investor A sells ...
Have a question or comment?
We're here to help.