Liabilities: Life Insurance Companies
Future benefits to be paid to the policyholders and beneficiaries, assigned surpluses, and miscellaneous debts. These primary liabilities take the form of reserves, which must be listed on the company's balance sheet as part of the liabilities section. The valuation of a company's reserves, which guarantee that funds will be available to meet its liabilities, is strictly regulated by the state insurance departments. Life insurance company liabilities also include cash surrender values of its policies and annuities.
Popular Insurance Terms
Account in which the same interest rate is credited on all premiums regardless of the time period and amount contributed. ...
Means of paying the cost of benefits of pension plan participants including retirement, death, and disability. ...
Employee benefit plans under which both the employee and the employer pay part of the premium. Contribution ratios vary. For example, an employer contributes two dollars for every dollar ...
Massachusetts commissioner of insurance responsible for the passage of legislation (1861) that guaranteed policy owners of that state equity in the cash value of their life insurance. The ...
Non qualified plan of deferred compensation whose goal is to compensate key employees without having to provide similar benefits to rank and file employees. The trust is irrevocable, and ...
Life insurance payment that is constant from year to year. The premium may be paid throughout the life of an insured or may be limited to a maximum number, such as 30 annual premiums. The ...
Reduction in the amount that the insured receives from the insurer, after having incurred a property loss, because the insurer failed to carry the amount of coverage required by the ...
Exemption in ocean marine policy for losses caused by strikes, riots, and civil commotion. ...
Policies that have been sold to and paid for by an insured, but not yet delivered to the insured. ...
Have a question or comment?
We're here to help.