Definitions
A payment that an insurance entity undertakes to relieve the policy holder of all or part of a risk and to spread the total cost of similar risks among large groups of policyholders.
What is a premium?
Entities that do not serve the public directly, but assume portions of the risk underwritten by insurance entities for their contract holders.
What are Reinsurance Entities?
This must be high enough to:
Pay contract benefits
Cover selling, operating, and maintenance expenses
Provide for an adequate profit
What are direct premium rates?
Federal regulator of life insurance entities who require periodic reporting requirements that include Form 10-K and Form 10-Q.
Who is the SEC?
Insurance contracts that have guaranteed cash value or nonforfeiture benefits will pay this upon the termination of the insurance contract.
What are surrender benefits?
An incorporated entity without private ownership interests that operates for the benefit of its contract holders and their beneficiaries.
What are mutual insurance entities?
Those contracts under which a portion of the associated earnings are returned to contract holders in the form of participating or contract holder dividends.
What are participating contracts?
Under statutory accounting principles, premiums and annuity considerations are recognized as revenue on this basis
What is the gross basis?
The federal entity that regulates insurance entity mergers, mail order advertising, and other trade practices affecting competition.
Who is the Federal Trade Commission (FTC)?
This type of annuity benefit provides for periodic payment to the annuitant as long as he/she lives and death of the annuitant completes the contract.
What is a straight life annuity?
These are usually independent contractors and often are granted an exclusive territory in which to produce business for a life insurance entity.
What are general agencies?
Stock entities, mutual entities, fraternal benefit societies, assessment entities
What are the legal forms of organizations?
These are long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.
What are investment contracts?
Outside auditors of public insurance companies are subject to the provisions and standards issued by this entity.
Who is the Public Company Accounting Oversight Board (PCAOB)?
Under this methodology, premiums receivable are reported on the balance sheet as the net amount expected to be collected based on historical information and management's estimates.
What is Current Expected Credit Losses (CECL)?
Assets that are liquid and whose value can be assessed or receivables that can reasonably be expected to be paid.
What are admitted assets?
Life insurance entities sell their products through these
What are Distribution Systems?
The revenue recognition methodologies applied under GAAP are defined by these.
What are the accounting classifications of the contracts?
Established in 1871, who is the standard-setting and regulatory support organization who established uniform financial reporting for insurance companies?
What is the National Association of Insurance Commissioners (NAIC)?
The process of examining and evaluating applications that are subject to mortality or morbidity rates including the evaluation of acceptability of the risk, selection of the applicable premium schedule, and evaluation of the entities capacity or desire to assume the entire risk.
What is underwriting?
A fund operated by regulators to provide protection for contract holders in the event that an insurance entity fails.
What is state guaranty funds?
The ratio that measures the percentage change in premium from the prior to current year
What is the change in premium ratio?
Premiums from these types of contracts should be recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided.
What are Short Term Contracts?
A systemic risk regulator created by the Dodd-Frank Act which identifies any company, product, or activity that could threaten the financial system.
What is the Financial Stability Oversight Council (FSOC)?
In the calculation of nonadmitted assets, uncollected premiums overdue by how many days should be classified as nonadmitted.
What is 90 days?