{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/944/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"405-944","topic":"405","title":"Financial Services—Insurance","area":"Liabilities","paragraphs":8,"summary":"ASC 405-944 tells insurance entities where liability accounting guidance lives and adds one specific rule for reinsurance contracts. Liabilities for claims costs and future policyholder benefits are in Subtopic 944-40, premium deficiencies in 944-60, and policyholder dividends in 944-50. The substantive rule here: a ceding entity that agrees to service the reinsured contracts without reasonable compensation must accrue a liability for estimated excess future servicing costs (405-944-25-1).","concepts":["reinsurance contract","ceding entity","excess future servicing costs","policyholder benefits","premium deficiency","policyholder dividends","insurance liabilities"],"categories":["Recognition","Industry-specific","Subsequent measurement"],"level":"intermediate","topic_title":"Liabilities","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-944-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL50304917-203110\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#dividend-to-policyholders\" class=\"term\" title=\"Nonguaranteed amounts distributable to policyholders of participating life insurance contracts and based on actual performance of the insurance entity as determined by the insurer. Under various state insurance laws, dividends are apportioned to policyholders on an equitable basis. The dividend allotted to any contract often is based on the amount that the contract, as one of a class of similar contracts, has contributed to the income available for distribution as dividends. Dividends to policyholders include annual policyholder dividends and terminal dividends.\"><span>Dividend to Policyholders</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/405/944/#405-944-05-1\" class=\"xref\">944-405-05-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a></td><td class=\"entry\">12/14/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/405/944/#405-944-05-2\" class=\"xref\">944-405-05-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nDividend to Policyholders | Added | Accounting Standards Update No. 2014-06 | 03/14/2014…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7480a569faa2704ee479d6d1fd34d54ea9b84ddba3346e900d2c9f17291445ed","downloaded_from":"2026-09-10T00:18:57.648Z","last_downloaded_at":"2026-09-10T00:18:57.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477687","source_sha256":"b6b5d5261fbab5a3c0d2115f75a0295d1201be45557db32692d464cd3bd9f725"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ac047e4e8f8140e935dcd28da8e6a1ac2a0d955de44a3064236d684fbe4c857","downloaded_from":"2026-09-10T00:18:57.648Z","last_downloaded_at":"2026-09-10T00:18:57.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477687","source_sha256":"b6b5d5261fbab5a3c0d2115f75a0295d1201be45557db32692d464cd3bd9f725"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d10b99525a600c21ec43f94cb1d77b6b7202612bcaf6dcaee1b9edc5ec4ffd7d","downloaded_from":"2026-09-10T00:18:57.648Z","last_downloaded_at":"2026-09-10T00:18:57.648Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477687","source_sha256":"b6b5d5261fbab5a3c0d2115f75a0295d1201be45557db32692d464cd3bd9f725"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-944-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance to insurance entities on accounting for and financial reporting of liabilities. The guidance in this Subtopic is provided in the following two Subsections:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><a href=\"/glossary/r/#reinsurance\" class=\"term\" title=\"A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.\"><span>Reinsurance</span></a> contracts.</div></li></ol></div></div>","snippet":"This Subtopic provides guidance to insurance entities on accounting for and financial reporting of liabilities. The guidance in this Subtopic is provided in the following two Subsections:\n(a) General\n(b) Reinsurance cont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76617de5bf8fab137d5d01c1a3e93d18246a7bb6ade47d9795f31d2c32695338","downloaded_from":"2026-09-10T00:18:59.503Z","last_downloaded_at":"2026-09-10T00:18:59.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478910","source_sha256":"2a387c70b4fd45d4fef190408a218b2c8888afed5b16791d5f25c2c7bf814e6f"}},{"citation":"405-944-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">For guidance on liabilities for claims costs and future policyholder benefits, see Subtopic <a altsource=\"GUID-DE23C1D2-8518-4C4F-B092-B41011D05673.ditamap\" class=\"ditamap\">944-40</a>. For guidance on liabilities related to premium deficiencies, see Subtopic <a altsource=\"GUID-3ACB496D-B77C-4877-9E43-541B153CE38E.ditamap\" class=\"ditamap\">944-60</a>. For guidance on liabilities for <a href=\"/glossary/d/#dividend-to-policyholders\" class=\"term\" title=\"Nonguaranteed amounts distributable to policyholders of participating life insurance contracts and based on actual performance of the insurance entity as determined by the insurer. Under various state insurance laws, dividends are apportioned to policyholders on an equitable basis. The dividend allotted to any contract often is based on the amount that the contract, as one of a class of similar contracts, has contributed to the income available for distribution as dividends. Dividends to policyholders include annual policyholder dividends and terminal dividends.\"><span>dividends to policyholders</span></a>, see Subtopic <a altsource=\"GUID-6F856520-5A78-47BE-A3B6-F1DAB6B7CF5A.ditamap\" class=\"ditamap\">944-50</a>.</div></div>","snippet":"For guidance on liabilities for claims costs and future policyholder benefits, see Subtopic 944-40. For guidance on liabilities related to premium deficiencies, see Subtopic 944-60. For guidance on liabilities for divide…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22d330924b80188a09c0cdf09ed358056fe9a42fceef5950fccbd60785269f4d","downloaded_from":"2026-09-10T00:18:59.503Z","last_downloaded_at":"2026-09-10T00:18:59.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478910","source_sha256":"2a387c70b4fd45d4fef190408a218b2c8888afed5b16791d5f25c2c7bf814e6f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21a2b60ed0884a865919fe582374fbee1b4cd1eb27874c449339eccbf30075e6","downloaded_from":"2026-09-10T00:18:59.503Z","last_downloaded_at":"2026-09-10T00:18:59.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478910","source_sha256":"2a387c70b4fd45d4fef190408a218b2c8888afed5b16791d5f25c2c7bf814e6f"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"405-944-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance to insurance entities on accounting for and financial reporting of liabilities related to <a href=\"/glossary/r/#reinsurance\" class=\"term\" title=\"A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.\"><span>reinsurance</span></a> contracts.</div></div>","snippet":"This Subtopic provides guidance to insurance entities on accounting for and financial reporting of liabilities related to reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce0facaf959bd391b06c55fb9bec1a8cfd200844b234ef38672f9264054784ab","downloaded_from":"2026-09-10T00:18:59.503Z","last_downloaded_at":"2026-09-10T00:18:59.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478910","source_sha256":"2a387c70b4fd45d4fef190408a218b2c8888afed5b16791d5f25c2c7bf814e6f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e3eb5aea3c0093a9a0ef22b2c3c183e2f07850ad27be08cc087a02b69eb1dfa","downloaded_from":"2026-09-10T00:18:59.503Z","last_downloaded_at":"2026-09-10T00:18:59.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478910","source_sha256":"2a387c70b4fd45d4fef190408a218b2c8888afed5b16791d5f25c2c7bf814e6f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:543cd7a145f9ee5d2530683b98207896b7c26b112bf803ebd40ce5348bf938f6","downloaded_from":"2026-09-10T00:18:59.503Z","last_downloaded_at":"2026-09-10T00:18:59.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478910","source_sha256":"2a387c70b4fd45d4fef190408a218b2c8888afed5b16791d5f25c2c7bf814e6f"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"405-944-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-6D9C18A3-ADAA-4660-A6E4-06A364A6BB5D.ditamap\" class=\"ditamap\">944-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9da12a4ae0c791540230cefd70da3d7609463f1409dfa541d9abe67c03a6d66b","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b657c84fe450e819d0905a3d91796bccc82f9367b668e599c92095d49640c774","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}},{"block":"Reinsurance Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"405-944-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the <a href=\"/asc/405/944/#15-scope-and-scope-exceptions\" class=\"xref\">General Subsection</a> of this Section, with specific instrument qualifications noted below.</div></div>","snippet":"The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2785a0b8f3abe2c5b6d5ae5962617ba18036cdb1917126b5babf976c8d139b1","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74b91a2c87ae39749e243e46126f5ae56436ec7cfa1183114c2340cf6a2142c3","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}},{"block":"Reinsurance Contracts","heading":"Instruments","paragraphs":[{"citation":"405-944-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to <a href=\"/glossary/r/#reinsurance\" class=\"term\" title=\"A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.\"><span>reinsurance</span></a> contracts. For guidance on identifying a reinsurance contract, see the <a href=\"/asc/944/20/#15-scope-and-scope-exceptions\" class=\"xref\">Reinsurance Contracts Subsection</a> of Section 944-20-15.</div></div>","snippet":"The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. For guidance on identifying a reinsurance contract, see the Reinsurance Contracts Subsection of Section 944-20…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:393dccf6b2e41c6af99b627f89fbecb3d54e82934cb37d06f5753070b944b8c2","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:356b1196f19e5a304910e3c2f66746acb59bcc202d8a7af74b993552e121b727","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf1ccf395ded670a03c0c9bcff36dd39fbda853893c361616601def0ba89c4d9","downloaded_from":"2026-09-10T00:19:02.199Z","last_downloaded_at":"2026-09-10T00:19:02.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478046","source_sha256":"a2d82a36154606c38f4a7ad19de452e1b2d815f7aa44ec16183f5a224410ff4e"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"405-944-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0526593C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If a <a href=\"/glossary/c/#ceding-entity\" class=\"term\" title=\"The party that pays a reinsurance premium in a reinsurance transaction. The ceding entity receives the right to reimbursement from the assuming entity under the terms of the reinsurance contract.\"><span>ceding entity</span></a> has agreed to service all of the related insurance contracts without reasonable compensation, a liability shall be accrued for estimated excess future servicing costs under the <a href=\"/glossary/r/#reinsurance\" class=\"term\" title=\"A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.\"><span>reinsurance</span></a> contract. </span></span></div></div>","snippet":"If a ceding entity has agreed to service all of the related insurance contracts without reasonable compensation, a liability shall be accrued for estimated excess future servicing costs under the reinsurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:194c63b7dd26dde13d09566c7e4d18fe7cd362fbda18e5b974263eaebaca32f4","downloaded_from":"2026-09-10T00:19:09.841Z","last_downloaded_at":"2026-09-10T00:19:09.841Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478695","source_sha256":"a96dee421c81a929c699f33ab520d185ee92e1e1701b9ccd039308b5e413a610"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b51d83826713947ba23661935b1f71c1b850106e73523629c3e78b31b762cd0","downloaded_from":"2026-09-10T00:19:09.841Z","last_downloaded_at":"2026-09-10T00:19:09.841Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478695","source_sha256":"a96dee421c81a929c699f33ab520d185ee92e1e1701b9ccd039308b5e413a610"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29383066b08da1c143ba7c2191aba71eedde6803c123777b9b83a9ac805e9773","downloaded_from":"2026-09-10T00:19:09.841Z","last_downloaded_at":"2026-09-10T00:19:09.841Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478695","source_sha256":"a96dee421c81a929c699f33ab520d185ee92e1e1701b9ccd039308b5e413a610"}}],"enrichment":{"summary":"ASC 405-944 tells insurance entities where liability accounting guidance lives and adds one specific rule for reinsurance contracts. Liabilities for claims costs and future policyholder benefits are in Subtopic 944-40, premium deficiencies in 944-60, and policyholder dividends in 944-50. The substantive rule here: a ceding entity that agrees to service the reinsured contracts without reasonable compensation must accrue a liability for estimated excess future servicing costs (405-944-25-1).","key_points":["The Subtopic is organized into a General Subsection and a Reinsurance Contracts Subsection, both addressing insurance entity liabilities (405-944-05-1).","Cross-references direct users elsewhere: claims costs and future policyholder benefits to Subtopic 944-40, premium deficiencies to 944-60, and dividends to policyholders to 944-50 (405-944-05-2).","Scope follows Section 944-10-15 (the Overall insurance Subtopic), and the Reinsurance Contracts Subsections apply only to reinsurance contracts, identified under 944-20-15 (405-944-15-1 through 15-3).","If a ceding entity agrees to service all related insurance contracts without reasonable compensation, it must accrue a liability for estimated excess future servicing costs under the reinsurance contract (405-944-25-1)."],"categories":["Recognition","Industry-specific","Subsequent measurement"],"audience_level":"intermediate","student_note":"The only operative rule in this Subtopic is the accrual of excess future servicing costs by a ceding entity that services reinsured contracts for less than reasonable compensation; everything else is a signpost to Subtopics 944-40, 944-50, and 944-60. A common mistake is looking here for measurement of claim liabilities or policyholder benefits, which are governed by 944-40.","related_topics":["944-40","944-50","944-60","944-20","944-10","944-30"],"key_concepts":["reinsurance contract","ceding entity","excess future servicing costs","policyholder benefits","premium deficiency","policyholder dividends","insurance liabilities"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db27f3033be0e358bd0432a08d5539d60fc5340eb98c3ed880f75f978d000492","downloaded_from":"2026-09-10T00:18:57.648Z","last_downloaded_at":"2026-09-10T00:19:09.841Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"340-944","title":"Financial Services—Insurance","topic_title":"Other Assets and Deferred 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