{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/605/944/#25-recognition","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.","topic":"605","topic_title":"Revenue Recognition","subtopic":"605-944","subtopic_title":"Financial Services—Insurance","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Short-Duration Contracts","heading":null,"paragraphs":[{"citation":"605-944-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_075FDE0B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Premiums from short-duration contracts shall be recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. For those few types of contracts for which the period of risk differs significantly from the <a href=\"/glossary/c/#contract-period\" class=\"term\" title=\"The period over which insured events that occur are covered by insurance or reinsurance contracts. Commonly referred to as the coverage period or period that the contracts are in force.\"><span>contract period</span></a>, premiums shall be recognized as revenue over the period of risk in proportion to the amount of insurance protection provided. That generally results in premiums being recognized as revenue evenly over the contract period (or the period of risk, if different), except for those few cases in which the amount of insurance protection declines according to a predetermined schedule. </span></span></div></div>","snippet":"Premiums from short-duration contracts shall be recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided. For those few types of contracts for which the period of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5fc3207e3e8898a5138ae173f26da053b9a2312e7cf5c7d2c7abe120055e67b0","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_075FDFA3-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If premiums are subject to adjustment (for example, retrospectively rated or other experience-rated insurance contracts for which the premium is determined after the period of the contract based on <a href=\"/glossary/c/#claim\" class=\"term\" title=\"A demand for payment of a policy benefit because of the occurrence of an insured event.\"><span>claim</span></a> experience or reporting-form contracts for which the premium is adjusted after the period of the contract based on the value of insured property), premium revenue shall be recognized as follows: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_075FE11A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the ultimate premium is reasonably estimable, the estimated ultimate premium shall be recognized as revenue over the period of the contract. The estimated ultimate premium shall be revised to reflect current experience. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_075FE252-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the ultimate premium cannot be reasonably estimated, the <a href=\"/glossary/c/#cost-recovery-method\" class=\"term\" title=\"A revenue recognition method under which premiums are recognized as revenue in an amount equal to estimated claim costs as insured events occur until the ultimate premium is reasonably estimable, and recognition of income is postponed until that time.\"><span>cost recovery method</span></a> or the <a href=\"/glossary/d/#deposit-method\" class=\"term\" title=\"A revenue recognition method under which premiums are not recognized as revenue and claim costs are not charged to expense until the ultimate premium is reasonably estimable, and recognition of income is postponed until that time.\"><span>deposit method</span></a> may be used until the ultimate premium becomes reasonably estimable. </span></span></div></li></ol></div></div>","snippet":"If premiums are subject to adjustment (for example, retrospectively rated or other experience-rated insurance contracts for which the premium is determined after the period of the contract based on claim experience or re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48e687da323e3ba237e32b0eaaec5c9cb9b3f8d33e180c26436260bac59f4f3a","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0cc6e504b274557f9dad81122ef8b1ff8f0be7cefc85350f869a6b2ef40d82f","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Long-Duration Contracts","heading":"Traditional Long-Duration Contracts","paragraphs":[{"citation":"605-944-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_077228E6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Because no single function or service is predominant over the periods of most types of long-duration contracts, premiums shall be recognized as revenue over the premium-paying periods of the contracts when due from policyholders. </span></span><span class=\"sfragment\" id=\"sfr_07722A11-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This includes premiums from <a href=\"/glossary/w/#whole-life-contract\" class=\"term\" title=\"Insurance that may be kept in force for a person's entire life by paying one or more premiums. It is paid for in one of three different ways: Ordinary life insurance (premiums are payable as long as the insured lives) Limited-payment life insurance (premiums are payable over a specified number of years) Single-premium life insurance (a lump-sum amount paid at the inception of the insurance contract). The insurance contract pays a benefit (contractual amount adjusted for items such as policy loans and dividends, if any) at the death of the insured. Whole-life insurance contracts also build up nonforfeiture benefits.\"><span>whole-life contracts</span></a>, guaranteed renewable term life contracts, title insurance contracts, </span></span><span class=\"sfragment\" id=\"sfr_07722B12-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">and participating life insurance contracts that meet the criteria in paragraph <a href=\"/asc/944/20/#944-20-15-3\" class=\"xref\">944-20-15-3</a>. </span></span></div></div>","snippet":"Because no single function or service is predominant over the periods of most types of long-duration contracts, premiums shall be recognized as revenue over the premium-paying periods of the contracts when due from polic…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c24d261e5fcee9fec70bbdd4653e0c3b3a640d2583faf9987d5c81649d9a41c","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_07722C0C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Premium revenue from long-duration contracts generally exceeds expected policy benefits in the early years of the contracts and it is necessary to accrue, as premium revenue is recognized, a liability for costs that are expected to be paid in the later years of the contracts. </span></span>See Subtopic <a altsource=\"GUID-DE23C1D2-8518-4C4F-B092-B41011D05673.ditamap\" class=\"ditamap\">944-40</a> for specific guidance.</div></div>","snippet":"Premium revenue from long-duration contracts generally exceeds expected policy benefits in the early years of the contracts and it is necessary to accrue, as premium revenue is recognized, a liability for costs that are …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:affa815e71a2731dcbbeca8ed42070d3836052ced7b5bbdb9fd2500efcd2d3c5","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f71513e6ef211fe56f8328d119d264b194dfdf592e1a47cac6261cd1161de2d1","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Long-Duration Contracts","heading":"Limited-Payment Contracts","paragraphs":[{"citation":"605-944-25-4A","para":"25-4A","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_07722D26-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Because the collection of premium under a limited-payment contract does not represent the completion of an earnings process, </span></span><span class=\"sfragment\" id=\"sfr_07722E29-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">any <a href=\"/glossary/g/#gross-premium\" class=\"term\" title=\"The premium charged to a policyholder for an insurance contract. See also Net Premiums.\"><span>gross premium</span></a> received in excess of the net premium shall be deferred. </span></span></div></div>","snippet":"Because the collection of premium under a limited-payment contract does not represent the completion of an earnings process, any gross premium received in excess of the net premium shall be deferred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22f0d1eac4c24e3e6ac2aaba8ef030d0ea57308fb9d2abcf060908bea9f70eb3","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb7e967a967806dd32124ff434f8f4c7783828d632e5f216de609a4697c9594b","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts","paragraphs":[{"citation":"605-944-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_07722F25-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Premiums collected on universal life-type contracts shall not be reported as revenue in the statement of earnings of the insurance entity. </span></span><span class=\"sfragment\" id=\"sfr_0772300A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Revenue from those contracts shall represent amounts assessed against policyholders and shall be reported in the period that the amounts are assessed unless evidence indicates that the amounts are designed to compensate the insurer for services to be provided over more than one period. </span></span></div></div>","snippet":"Premiums collected on universal life-type contracts shall not be reported as revenue in the statement of earnings of the insurance entity. Revenue from those contracts shall represent amounts assessed against policyholde…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:378b58ffac739f89dc1bbfe76454e091c06889bd0ddfdf625c81b523867c5d7d","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-6","para":"25-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_077230F1-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts assessed that represent compensation to the insurance entity for services to be provided in future periods are not earned in the period assessed. Such amounts shall be recognized as unearned revenue. </span></span></div></div>","snippet":"Amounts assessed that represent compensation to the insurance entity for services to be provided in future periods are not earned in the period assessed. Such amounts shall be recognized as unearned revenue.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:423da51c60cb343ed4696e0b344eb36fd3c055893f6081c99aa074c57719c963","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-7","para":"25-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_077231D8-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts that are assessed against the policyholder balance as consideration for origination of the contract, often referred to as <a href=\"/glossary/i/#initiation-or-front-end-fees\" class=\"term\" title=\"Amounts that are assessed against the policyholder balance as consideration for origination of the contract.\"><span>initiation or front-end fees</span></a>, shall be recognized as unearned revenues. </span></span></div></div>","snippet":"Amounts that are assessed against the policyholder balance as consideration for origination of the contract, often referred to as initiation or front-end fees, shall be recognized as unearned revenues.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2312909ddcbf90bda1d6abc0bf12270671bec8fc1a70426576cff5bf6b95265","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-8","para":"25-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2018-12/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2018-12</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2018-12.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a58799a06c43320e7239f97577bf48a595dba6c7ab20eea7ed1332703979360","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-9","para":"25-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_077233A4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An insurance entity shall not record a liability for unearned revenue if the purpose is an attempt to inappropriately level the contract's gross profit over the life of the contract or the accrual would serve to produce a level gross profit from the <a href=\"/glossary/m/#mortality\" class=\"term\" title=\"The relative incidence of death in a given time or place.\"><span>mortality</span></a> benefit over the life of the contract. </span></span></div></div>","snippet":"An insurance entity shall not record a liability for unearned revenue if the purpose is an attempt to inappropriately level the contract's gross profit over the life of the contract or the accrual would serve to produce …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75a5113b9d9eaf0871462c3c6c48b2c6e389c074240e7ad77d69938f18ca65fb","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-10","para":"25-10","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_07723487-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">This Subtopic does not limit the accrual of unearned revenue for insurance benefit features of universal life-type contracts to situations where profits are expected to be followed by losses; that is, the facts and circumstances of each situation must be considered in determining the need for accruing unearned revenue. </span></span></div></div>","snippet":"This Subtopic does not limit the accrual of unearned revenue for insurance benefit features of universal life-type contracts to situations where profits are expected to be followed by losses; that is, the facts and circu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c16c9aa60b74d039410fffeb8f5c008c8ca7b8e1cc22540c58b68f744061adc0","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-11","para":"25-11","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2018-12/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2018-12</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2018-12.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dad90b903f2b7f75ac4a8feb36b08da0439445e66f87223969f4c79d1d3cb00","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dcebbe429e907e6dc68698282d5c180136aca6044acf321126b6b69cce2bfc6","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Long-Duration Contracts","heading":"Title Insurance Contracts","paragraphs":[{"citation":"605-944-25-12","para":"25-12","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0772363D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Except as noted in the next sentence, premiums from title insurance contracts shall be considered due from policyholders and, accordingly, recognized as revenue on the effective date of the insurance contract </span></span><span class=\"sfragment\" id=\"sfr_07723708-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">because most of the services associated with the contract have been rendered by that time. </span></span><span class=\"sfragment\" id=\"sfr_077237CE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, the <a href=\"/glossary/b/#binder-date\" class=\"term\" title=\"The date a commitment to issue a policy is given.\"><span>binder date</span></a> is appropriate if the insurance entity is legally or contractually entitled to the premium on the binder date. </span></span></div></div>","snippet":"Except as noted in the next sentence, premiums from title insurance contracts shall be considered due from policyholders and, accordingly, recognized as revenue on the effective date of the insurance contract because mos…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6a4c151c8d24c7dfc7adcfbb56ebe5a4505cbc61c13e8fa66a028577c743499","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-13","para":"25-13","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_077238E7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If reasonably estimable, premium revenue and costs relating to title insurance contracts issued by agents shall be recognized when the agents are legally or contractually entitled to the premiums, using estimates based on past experience and other sources. If not reasonably estimable, premium revenue and costs shall be recognized when agents report the issuance of title insurance contracts. </span></span></div></div>","snippet":"If reasonably estimable, premium revenue and costs relating to title insurance contracts issued by agents shall be recognized when the agents are legally or contractually entitled to the premiums, using estimates based o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:934f1350caf5ede6d21c01b72fb31f34b5a98dc9fc915f074cc98d4cd536b22d","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4b274753e11d862911246654aa951c8c78b41538debe04fc8418af014565c50","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Long-Duration Contracts","heading":"Retrospective and Contingent Commission Arrangements","paragraphs":[{"citation":"605-944-25-14","para":"25-14","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_077239BA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If retrospective commission or experience refund arrangements exist under experience-rated insurance contracts, a separate liability shall be accrued for those amounts. </span></span><span class=\"sfragment\" id=\"sfr_07723A80-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Income in any period shall not include any amounts that are expected to be paid to agents or others in the form of experience refunds or additional commissions. </span></span><span class=\"sfragment\" id=\"sfr_07723B3D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Contingent commissions receivable or payable shall be accrued over the period in which related income is recognized. </span></span></div></div>","snippet":"If retrospective commission or experience refund arrangements exist under experience-rated insurance contracts, a separate liability shall be accrued for those amounts. Income in any period shall not include any amounts …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5c578400e08042250a5f0448ca871a80f5be2f9308e7094c9166300ce7083365","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-15","para":"25-15","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/page-1833002/\" class=\"xref\">Paragraph not used</a>.</div></div>","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3318a1e3c6bfcf9690ec9aae6014f63e52750e64e6b05ab8155cb4f7d418f546","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9b11e523977d25c33cf53fc51a949bfc27113e621cbc38960eeb1326a15285e","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Reinsurance Contracts","heading":"Foreign Property and Liability Reinsurance","paragraphs":[{"citation":"605-944-25-16","para":"25-16","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A40D1-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The periodic method and <a href=\"/glossary/o/#open-year-method\" class=\"term\" title=\"A revenue recognition method under which underwriting results of foreign reinsurance are not included in the income statement until sufficient information becomes available to provide reasonable estimates of earned premiums.\"><span>open year method</span></a> are not interchangeable in the same circumstances. </span></span><span class=\"sfragment\" id=\"sfr_078A42A5-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The periodic method and open year method are not alternative accounting principles as discussed in Topic <a altsource=\"GUID-2C19D78B-1169-4772-A984-E4C872339081.ditamap\" class=\"ditamap\">250</a>. </span></span><span class=\"sfragment\" id=\"sfr_078A4482-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Rather, one or the other is to be used depending on the circumstances. </span></span><span class=\"sfragment\" id=\"sfr_078A45D6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As such, changes between these methods are not accounting changes. </span></span><span class=\"sfragment\" id=\"sfr_078A473C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In addition, changes from the periodic method to the open year method would be seldom. </span></span></div></div>","snippet":"The periodic method and open year method are not interchangeable in the same circumstances. The periodic method and open year method are not alternative accounting principles as discussed in Topic 250. Rather, one or the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18ff76886be11b87bb17f0b3757d83ded26683fb894475b6776052f2368a89ea","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-17","para":"25-17","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A487F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The periodic method of accounting for <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> provides for current recognition of profits and losses. </span></span><span class=\"sfragment\" id=\"sfr_078A49DD-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Premiums are recognized as revenue over the policy term, and claims, including an estimate of claims incurred but not reported, are recognized as they occur. </span></span><span class=\"sfragment\" id=\"sfr_078A4B26-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The periodic method shall be used to account for foreign reinsurance except in the circumstance described in the following paragraph. </span></span><span class=\"sfragment\" id=\"sfr_078A4C52-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Only if reasonable estimates cannot be made currently, for the reason discussed in the following paragraph, shall the open year method be used. </span></span></div></div>","snippet":"The periodic method of accounting for reinsurance provides for current recognition of profits and losses. Premiums are recognized as revenue over the policy term, and claims, including an estimate of claims incurred but …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22cfefae41ea538ba7063cd15bc603f923cb841fccfe0a6ae4cf5e680e64ca92","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-18","para":"25-18","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A4D54-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If, due to local revenue recognition policies, the foreign <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> cannot provide the information required by the assuming entity to estimate both the ultimate premiums and the appropriate periods of recognition in accordance with U.S. generally accepted accounting principles (GAAP), then the open year method shall be used. </span></span><span class=\"sfragment\" id=\"sfr_078A4E45-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the foreign ceding entity maintains supplementary records that are sufficient to reasonably estimate earned premiums currently, then the U.S. assuming entity shall obtain the necessary information and use the periodic method to account for the foreign reinsurance. </span></span><span class=\"sfragment\" id=\"sfr_078A4F2A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The presence of uncertainties that may be inherent in estimating earned premiums is not an acceptable basis for using the open year method. </span></span></div></div>","snippet":"If, due to local revenue recognition policies, the foreign ceding entity cannot provide the information required by the assuming entity to estimate both the ultimate premiums and the appropriate periods of recognition in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8b368d294a9ae238edc197f029b62873d8129a5b9ba270366fc586b7c68a234","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-19","para":"25-19","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A502F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Under the open year method, premiums, claims, commissions, and related direct taxes shall not be reported currently as income; instead, paragraph <a href=\"/asc/605/944/#605-944-35-5\" class=\"xref\">944-605-35-5</a> requires that they be included in the open underwriting balance to which they pertain. </span></span><span class=\"sfragment\" id=\"sfr_078A5125-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The underwriting balances shall be aggregated </span></span><span class=\"sfragment\" id=\"sfr_078A520F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">and each underwriting balance shall be kept open until, as discussed in paragraph <a href=\"/asc/605/944/#605-944-35-6\" class=\"xref\">944-605-35-6</a>, sufficient information becomes available to record a reasonable estimate of earned premiums. </span></span></div></div>","snippet":"Under the open year method, premiums, claims, commissions, and related direct taxes shall not be reported currently as income; instead, paragraph 944-605-35-5 requires that they be included in the open underwriting balan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c598b0cbf4d6f1703a9b5b1d3be177b8816ab757ea6dc6aeac91ae8d5a9b2dbc","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9687abcfaa28b26cd4784f3d79cec93f51e32ea9a38051e18834dc5fde0cc044","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Reinsurance Contracts","heading":"Reinsurance of Short-Duration Contracts","paragraphs":[{"citation":"605-944-25-20","para":"25-20","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A52EF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts paid for <a href=\"/glossary/p/#prospective-reinsurance\" class=\"term\" title=\"Reinsurance in which an assuming entity agrees to reimburse a ceding entity for losses that may be incurred as a result of future insurable events covered under contracts subject to the reinsurance. A reinsurance contract may include both prospective and retroactive reinsurance provisions.\"><span>prospective reinsurance</span></a> of short-duration contracts that meet the conditions for reinsurance accounting shall be reported as <a href=\"/glossary/p/#prepaid-reinsurance-premiums\" class=\"term\" title=\"Amounts paid to the reinsurer relating to the unexpired portion of reinsured contracts.\"><span>prepaid reinsurance premiums</span></a>. </span></span></div></div>","snippet":"Amounts paid for prospective reinsurance of short-duration contracts that meet the conditions for reinsurance accounting shall be reported as prepaid reinsurance premiums.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6676dcc1948adee9836b90efa818d9bcd23d17b289c2b6b729f2a23d00cb500f","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-21","para":"25-21","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A53D2-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If practicable, prospective and retroactive provisions included within a single contract shall be accounted for separately. </span></span><span class=\"sfragment\" id=\"sfr_078A54A9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Reinsurance Contracts Subsections of this Subtopic do not require any specific method for allocating reinsurance premiums to the prospective and retroactive portions of a contract. </span></span><span class=\"sfragment\" id=\"sfr_078A5582-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, separate accounting for the prospective and retroactive portions of a contract may take place only when an allocation is practicable. </span></span><span class=\"sfragment\" id=\"sfr_078A564C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Practicability requires a reasonable basis for allocating the reinsurance premiums to the risks covered by the prospective and retroactive portions of the contract, considering all amounts paid or deemed to have been paid regardless of the timing of payment. </span></span><span class=\"sfragment\" id=\"sfr_078A5714-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If separate accounting for prospective and retroactive provisions included within a single contract is impracticable, the contract shall be accounted for as a retroactive contract provided the conditions for reinsurance accounting are met. </span></span><span class=\"sfragment\" id=\"sfr_078A57DB-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Impracticable is used to mean that the prospective and retroactive provisions cannot be accounted for separately without incurring excessive costs. </span></span><span class=\"sfragment\" id=\"sfr_078A5897-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Practicability is a dynamic concept: what is practicable for one entity might not be for another; what is not practicable in one year might be in another. </span></span></div></div>","snippet":"If practicable, prospective and retroactive provisions included within a single contract shall be accounted for separately. The Reinsurance Contracts Subsections of this Subtopic do not require any specific method for al…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:374a6789ae0efbef6b80e678f69037e8a8914aaa37f1c62f11e523585a750c6c","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-22","para":"25-22","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A5963-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts paid for <a href=\"/glossary/r/#retroactive-reinsurance\" class=\"term\" title=\"Reinsurance in which an assuming entity agrees to reimburse a ceding entity for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. A reinsurance contract may include both prospective and retroactive reinsurance provisions.\"><span>retroactive reinsurance</span></a> of short-duration contracts that meets the conditions for reinsurance accounting shall be reported as <a href=\"/glossary/r/#reinsurance-recoverable\" class=\"term\" title=\"All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.\"><span>reinsurance recoverables</span></a> to the extent those amounts do not exceed the recorded liabilities relating to the underlying reinsured contracts. </span></span><span class=\"sfragment\" id=\"sfr_078A5A2C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the recorded liabilities exceed the amounts paid, reinsurance recoverables shall be increased to reflect the difference and the resulting gain deferred. </span></span></div></div>","snippet":"Amounts paid for retroactive reinsurance of short-duration contracts that meets the conditions for reinsurance accounting shall be reported as reinsurance recoverables to the extent those amounts do not exceed the record…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:711e59e6bddfdc2961b3f8d614f8ea7ddcf63fc645f02a72b3b1dec98cc58321","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-23","para":"25-23","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_078A5AF5-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the amounts paid for retroactive reinsurance for short-duration contracts exceed the recorded liabilities relating to the underlying reinsured short-duration contracts, the ceding entity shall increase the related liabilities or reduce the reinsurance recoverable or both at the time the reinsurance contract is entered into, so that the excess is charged to earnings. </span></span></div></div>","snippet":"If the amounts paid for retroactive reinsurance for short-duration contracts exceed the recorded liabilities relating to the underlying reinsured short-duration contracts, the ceding entity shall increase the related lia…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:26f0e15d0547385c66010c78b4842ed72a9fc1f813a0e5bc0f8e83973fb749fd","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-24","para":"25-24","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/page-1833002/\" class=\"xref\">Paragraph not used</a>.</div></div>","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62d79949e4a81a5670f5e98d60d539fea3e4f9c84211fee789b64ef0f2a60084","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36b38d787b6bce61783d90d8cc99b6c3e4688173c0b2a554a472752e9b2e51ae","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"605-944-25-25","para":"25-25","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799CB39-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><span class=\"principle\">An insurance entity shall recognize a liability for the unearned premium revenue at the inception of a financial guarantee insurance contract.</span> The unearned premium revenue represents the insurance entity's stand-ready obligation under a financial guarantee insurance contract at initial recognition.</span></span></div></div>","snippet":"An insurance entity shall recognize a liability for the unearned premium revenue at the inception of a financial guarantee insurance contract. The unearned premium revenue represents the insurance entity's stand-ready ob…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27b7d013d8d0c8b2f055c8e2862d9d5f3613fbb83ad8fc5f4c82efc092e625f6","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-26","para":"25-26","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799CC77-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><span class=\"principle\">An insurance entity shall recognize the premium from a financial guarantee insurance contract as revenue over the period of the contract in proportion to the amount of insurance protection provided with a corresponding adjustment (decrease) in the unearned premium revenue.</span></span></span></div></div>","snippet":"An insurance entity shall recognize the premium from a financial guarantee insurance contract as revenue over the period of the contract in proportion to the amount of insurance protection provided with a corresponding a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:add511fcb941f4d6414edf9de9d962427c1e125b0f4ac98cf16edc01206cbe94","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-27","para":"25-27","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799CD6F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount of insurance protection provided is assumed to be a function of the insured principal amount outstanding. Therefore, the proportionate share of premium revenue to be recognized in a given reporting period shall be a constant rate calculated based on the relationship between the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_0799CE5C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The insured principal amount outstanding in a given reporting period </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_0799CF3F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The sum of each of the insured principal amounts outstanding for all periods. </span></span></div></li></ol></div></div>","snippet":"The amount of insurance protection provided is assumed to be a function of the insured principal amount outstanding. Therefore, the proportionate share of premium revenue to be recognized in a given reporting period shal…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05dab8dcee8b8a8885f64e8d5f49db43ac0d659831516d0a28cb47854a20e960","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-28","para":"25-28","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799D031-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accordingly, the premium revenue for each reporting period shall be determined by multiplying the insured principal amount outstanding for that period by the ratio of (a) to (b):</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_0799D1C3-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The total present value of the premium due or expected to be collected over the period of the contract</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_0799D34B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The sum of all insured principal amounts outstanding during each reporting period over the period of the contract (either contract period or expected period). </span></span></div></li></ol><span class=\"sfragment\" id=\"sfr_0799D432-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Example 2 (see paragraph <a href=\"/asc/605/944/#605-944-55-17\" class=\"xref\">944-605-55-17</a>) illustrates the application of this guidance.</span></span></div></div>","snippet":"Accordingly, the premium revenue for each reporting period shall be determined by multiplying the insured principal amount outstanding for that period by the ratio of (a) to (b):\n(a) The total present value of the premiu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63d944fd30aaa713e5967dd4daf96c4bf7f6f1914e48425041bdedae02dbb5ee","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-29","para":"25-29","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799D520-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If an insured financial obligation accretes to the principal amount over its life and has a single principal payment at maturity, the sum of all insured accreted principal amounts outstanding during each reporting period shall be used as the denominator of the ratio and the insured principal amount outstanding is the accreted principal amount outstanding. Example 3 (see paragraph <a href=\"/asc/605/944/#605-944-55-19\" class=\"xref\">944-605-55-19</a>) illustrates the application of this guidance.</span></span></div></div>","snippet":"If an insured financial obligation accretes to the principal amount over its life and has a single principal payment at maturity, the sum of all insured accreted principal amounts outstanding during each reporting period…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5dbb9e847665d7e9d51f026744e33ac78b8d818d12f8d83204e3d9e52677b053","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-30","para":"25-30","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in the following paragraph applies if both of the following conditions exist:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_0799D608-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An expected period is used as discussed in paragraph <a href=\"/asc/310/944/#310-944-30-3\" class=\"xref\">944-310-30-3</a></span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_0799D6DF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The expected period changes due to changes in prepayment assumptions. </span></span></div></li></ol></div></div>","snippet":"The guidance in the following paragraph applies if both of the following conditions exist:\n(a) An expected period is used as discussed in paragraph 944-310-30-3\n(b) The expected period changes due to changes in prepaymen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0510727f9bd14e3000f947b93828b9e493f5b84b69dfa9a3574116d0198b1aa","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-31","para":"25-31","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799D7CF-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the conditions in the preceding paragraph are met, the insurance entity shall recalculate the constant rate based on the new prepayment assumptions (and current risk-free rate) and apply that new constant rate to the principal amounts outstanding for the remaining expected period of the contract. Example 1 in Section <a altsource=\"GUID-CC88078D-AD15-429D-86EE-FF8A0D5F7B92.ditamap\" class=\"ditamap\">944-310-55</a> (see paragraph <a href=\"/asc/310/944/#310-944-55-1\" class=\"xref\">944-310-55-1</a>) illustrates the application of this guidance.</span></span></div></div>","snippet":"If the conditions in the preceding paragraph are met, the insurance entity shall recalculate the constant rate based on the new prepayment assumptions (and current risk-free rate) and apply that new constant rate to the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a9263683ba5d28307386f7600a02fa5ca8eb98d98b18aeae695f3685942fd96","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:feb3f032fbdb13f39c3da9fa0452ffa1d686d7db7453d2540ac9e7b848719705","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Early Retirement and Replacement of an Insured Financial Obligation","paragraphs":[{"citation":"605-944-25-32","para":"25-32","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799D8AC-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In a refunding, the financial guarantee insurance contract on the retired financial obligation is extinguished—that is, the financial guarantee insurance contract must be extinguished to be considered a refunding for purposes of this paragraph. The insurance entity shall immediately recognize any nonrefundable unearned premium revenue related to that contract as premium revenue and any associated acquisition costs previously deferred under Subtopic <a altsource=\"GUID-FF5ECAE8-5C8C-4E07-B8E0-96D5CBD7671B.ditamap\" class=\"ditamap\">944-30</a> as an expense.</span></span></div></div>","snippet":"In a refunding, the financial guarantee insurance contract on the retired financial obligation is extinguished—that is, the financial guarantee insurance contract must be extinguished to be considered a refunding for pur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5028a619127f54fe68ba1260aa4a7017af11bf19c37b53fb26ca5c8b652b1559","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},{"citation":"605-944-25-33","para":"25-33","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0799D97A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the insurance entity insures the new financial obligation, the insurance entity shall recognize the unearned premium revenue on the new financial obligation that is commensurate with the premium it would charge to insure a similar financial obligation in a separate (standalone) transaction. If that premium differs from the premium actually charged, the difference shall be recognized in current earnings. Example 4 (see paragraph <a href=\"/asc/605/944/#605-944-55-22\" class=\"xref\">944-605-55-22</a>) illustrates the application of this guidance.</span></span></div></div>","snippet":"If the insurance entity insures the new financial obligation, the insurance entity shall recognize the unearned premium revenue on the new financial obligation that is commensurate with the premium it would charge to ins…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22ec964b33d0eeeb5c5846ebfa0ec7c410ef4daef4bc77ed7c9f33a65e81b7f9","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40899a61e6a7ee1d705993d9b7089c3c313f79f398c6c76cf9d578eb5c623a75","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2edc9c88c4103363ea15e8617fcff8050644bad4c10bcd2a65db7331bc7c1aef","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2edc9c88c4103363ea15e8617fcff8050644bad4c10bcd2a65db7331bc7c1aef","downloaded_from":"2026-09-10T00:49:29.001Z","last_downloaded_at":"2026-09-10T00:49:29.001Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478384","source_sha256":"cbbfe327219e21d0daaa60eefd9a2d58fe188c91ff6ab9d622d26776e42ce541"}}