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
Initial reserve plus the terminal reserve divided by two for any year of valuation. ...
Feature of property and casualty policy providing coverage without a reduction in the policy's limits after a loss is paid. For example, if the limit of coverage under a property policy is ...
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Calculation of insurance premiums based on an age less than the current age of the insured. ...
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Layman description of the key features and benefits of a pension plan that must be filed with the Department of Labor. Periodic updates of this summary must also be provided to the ...
Tax assessed by the states as a payroll tax on employers to pay for unemployment compensation ...
number of people born as a percentage of the total population in any given period of time. ...
Error, misstatement, or breach of duty by an officer or director of a company that results in a lawsuit against the company. directors and officers liability insurance covers claims arising ...
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