Statutory Accounting
Definition of "Statutory accounting"
Rules that insurance companies must follow in filing an annual financial statement known as the convention blank, with state insurance departments. The reported financial condition of an insurance company can differ markedly depending on whether statutory accounting rules or generally accepted accounting principles (gaap) are used in preparing financial statements. In general, statutory accounting is more conservative than GAAP because it tends to overstate expenses and liabilities while understating income and assets.
Popular Insurance Terms
Coverage by at least two insurance policies providing the same coverage for the same risk. ...
Relationship between expected incurred insurance-related costs (not including claims) and expected written premiums. ...
Computation of the asset share value, surrender value, and reserve and the comparison of the three computations in order to judge the adequacy and equity of the tentative gross premium ...
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Bureau insurer that files its statistical and underwriting experience with a rating bureau. ...
Regulation named after a former Superintendent of Insurance of New York State, and instituted in the early 1900s. It requires every insurer admitted to New York to comply with the New York ...
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