Valuation Of Assets
Rules by state insurance regulators for valuing admitted assets on the books of insurance companies. Part of the state supervision and regulation of insurers is the determination of which assets-"admitted assets"-are allowed to back statutory reserves. Admitted assets include real estate, mortgages, securities, cash, and bank deposits. Mortgage loans, cash, and bank deposits are recognized at face value. Real estate is allowed at book value. Securities are carried according to security valuation rules. Bonds with acceptable credit quality are carried at amortized value, which is the face value plus or minus the amount of any purchase discount or premium, as amortized over the life of the bond. Preferred stock is valued at cost and common stock investments at year-end market price. Valuations for impaired securities such as bonds in default are determined by the Committee on Valuation of Securities of the national association of insurance commissioners (NAIC).
Popular Insurance Terms
Length of time insurance policy is in force. ...
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Many different, unofficial, and voluntary nonlitigation processes employed by insurance companies to resolve contractual disputes with their insureds. Examples would include nonbinding ...
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