{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/605/944/","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":"605-944","topic":"605","title":"Financial Services—Insurance","area":"Revenue","paragraphs":111,"summary":"ASC 944-605 governs when and how insurance entities recognize premium revenue, split into short-duration, long-duration, reinsurance, and financial guarantee subsections. Short-duration premiums are earned over the contract (or risk) period in proportion to insurance protection provided; long-duration premiums are recognized when due from policyholders; universal life-type contract revenue is limited to amounts assessed against policyholders, with front-end fees deferred as unearned revenue. Reinsurance sections address prepaid reinsurance premiums, deferral and amortization of retroactive reinsurance gains, and the open year versus periodic method for foreign reinsurance.","concepts":["premium revenue recognition","short-duration and long-duration contracts","universal life-type contracts","unearned revenue and front-end fees","deferred profit liability","retroactive reinsurance deferred gain","open year method","financial guarantee unearned premium revenue"],"categories":["Revenue","Industry-specific","Recognition","Subsequent measurement"],"level":"advanced","topic_title":"Revenue Recognition","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"605-944-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Acquisition Costs Amended Accounting Standards Update No. 2010-26 10/13/2010
Contract Period Amended Accounting Standards Update No. 2016-19 12/14/2016
Liability for Future Policy Benefits Added Accounting Standards Update No. 2018-12 08/15/2018
Net Premiums Amended Accounting Standards Update No. 2018-12 08/15/2018
Reinsurance Receivable Superseded Accounting Standards Update No. 2016-19 12/14/2016
Reinsurance Recoverable Added Accounting Standards Update No. 2016-19 12/14/2016
944-605-05-1 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-05-7 Amended Accounting Standards Update No. 2009-02 07/01/2009
944-605-05-8 Amended Accounting Standards Update No. 2009-02 07/01/2009
944-605-25-8 Superseded Accounting Standards Update No. 2018-12 08/15/2018
944-605-25-11 Superseded Accounting Standards Update No. 2018-12 08/15/2018
944-605-25-21 Amended Accounting Standards Update No. 2016-01 01/05/2016
944-605-25-22 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-25-23 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-25-24 Amended Accounting Standards Update No. 2009-02 07/01/2009
944-605-30-1 Amended Accounting Standards Update No. 2018-12 08/15/2018
944-605-30-2 Amended Accounting Standards Update No. 2018-12 08/15/2018
944-605-30-2A Added Accounting Standards Update No. 2018-12 08/15/2018
944-605-35-1 Amended Accounting Standards Update No. 2018-12 08/15/2018
944-605-35-1A Amended Accounting Standards Update No. 2018-12 08/15/2018
944-605-35-1B Added Accounting Standards Update No. 2018-12 08/15/2018
944-605-35-1C Added Accounting Standards Update No. 2018-12 08/15/2018
944-605-35-8 Amended Accounting Standards Update No. 2012-04 10/01/2012
944-605-35-9 Amended Accounting Standards Update No. 2012-04 10/01/2012
944-605-35-12 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-45-1 Amended Maintenance Update 2016-11 (PDF) 06/27/2016
944-605-55-1 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-55-11 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-55-12 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-55-14 Amended Accounting Standards Update No. 2016-19 12/14/2016
944-605-55-15 Amended Accounting Standards Update No. 2016-19 12/14/2016
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nAcquisition Costs | Amended | Accounting Standards Update No. 2010-26 | 10/13/2010 |\nCon…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d445bea788215f2ba5efa2b1b065a79cd4e40cb7eb5e92addd62f3126b11e79d","downloaded_from":"2026-09-10T00:49:17.918Z","last_downloaded_at":"2026-09-10T00:49:17.918Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479020","source_sha256":"412ae7a991b49c1ba4ba1575d4706408bf835a7631294fc98ba93dbefac1a2a2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6609ca0b7fa27bff998c79d67abafa2ba675b65481bab38c3c31321fb48f7ab8","downloaded_from":"2026-09-10T00:49:17.918Z","last_downloaded_at":"2026-09-10T00:49:17.918Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479020","source_sha256":"412ae7a991b49c1ba4ba1575d4706408bf835a7631294fc98ba93dbefac1a2a2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:168222492945bd3aed0a8e5ebc4500bb73d4f6003fc9f39366b9974590341363","downloaded_from":"2026-09-10T00:49:17.918Z","last_downloaded_at":"2026-09-10T00:49:17.918Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479020","source_sha256":"412ae7a991b49c1ba4ba1575d4706408bf835a7631294fc98ba93dbefac1a2a2"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"605-944-05-1","para":"05-1","html":"
This Subtopic provides guidance to insurance entities on accounting for and financial reporting of revenue from insurance contracts. The guidance in this Subtopic is presented in the following five Subsections:
  1. a
    General
  2. b
    Short-Duration Contracts
  3. c
    Long-Duration Contracts
  4. d
    Reinsurance Contracts
  5. e
    Financial Guarantee Insurance Contracts.
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The Short-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from short-duration insurance contracts.
","snippet":"The Short-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from short-duration insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ab5cbf35c62d24acb405f16518debe13d40a43995b1d0c9ad1aa3a1375ab396","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8599c39efd5751f52e83611882db07ebb37104ea9f6018f7d766ad5e1e8fafc","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"605-944-05-3","para":"05-3","html":"
The Long-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from long-duration insurance contracts.
","snippet":"The Long-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from long-duration insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1df6022ce4af4ff8ac7fcbc2250ce2bc6e4771e04af0da551cf294959f0a63c8","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02c531a707c188756e5931366b5ff711ba059ecae053916f71da500443c3e67f","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"605-944-05-4","para":"05-4","html":"
The Reinsurance Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from reinsurance contracts.
","snippet":"The Reinsurance Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5abff7a765088f2419ad6049522a15e5c416a073b8988f94674f205571bbfd9f","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d876c237a44c323357d7e277f5daef643fc4013fc39e507d5c7f103ed366a57","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}},{"block":"Reinsurance Contracts","heading":"All Reinsurance Contracts","paragraphs":[{"citation":"605-944-05-5","para":"05-5","html":"
Reinsurers assuming business from domestic entities historically have had sufficient information to monitor and account for contract results. In contrast, some reinsurers assuming business from foreign entities do not receive such information, because in some foreign jurisdictions, insurance entities' accounting and reporting practices concerning periodic recognition of revenue and incurred claims are substantially different from U.S. practices. Therefore, reinsurers assuming business from foreign ceding entities cannot always obtain sufficient information to periodically estimate earned premiums for the business assumed from the foreign ceding entities.
","snippet":"Reinsurers assuming business from domestic entities historically have had sufficient information to monitor and account for contract results. In contrast, some reinsurers assuming business from foreign entities do not re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59a3f7d2a166603b55fe274c46f38815b496f707c7d6816de003b5f553ebe367","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}},{"citation":"605-944-05-6","para":"05-6","html":"
A significant amount of reinsurance is transacted through syndicates organized by Lloyd's of London. Lloyd's syndicates report the amounts of premiums, claims, and expenses recorded in an underwriting account for a particular year to the assuming entities that participate in the syndicates. The syndicates generally keep accounts open for three years. Traditionally, three years have been necessary to report substantially all premiums associated with an underwriting year and to report most related claims, although claims may remain unsettled after the account is closed. A Lloyd's syndicate typically closes an underwriting account by reinsuring outstanding claims on that account with a syndicate for the next underwriting year. The ceding syndicate pays the assuming syndicate an amount based on the unearned premiums and outstanding claims in the underwriting account at the date of the assumption and distributes the remaining balance to its participants.
","snippet":"A significant amount of reinsurance is transacted through syndicates organized by Lloyd's of London. Lloyd's syndicates report the amounts of premiums, claims, and expenses recorded in an underwriting account for a parti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0ced4cdab21a3e513a6fbbbc466a53c0559b13e9a463ad676bc5bd23951bad0","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}},{"citation":"605-944-05-7","para":"05-7","html":"
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The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of revenue from financial guarantee insurance contracts.
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In some cases, the issuer of an insured financial obligation will retire an insured financial obligation before its maturity and replace it with a new financial obligation. That situation, referred to as a refunding, often occurs when interest rates decrease and the insured financial obligation is replaced with a new financial obligation at a lower interest rate.
","snippet":"In some cases, the issuer of an insured financial obligation will retire an insured financial obligation before its maturity and replace it with a new financial obligation. That situation, referred to as a refunding, oft…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54ed7d443227edeec3b8f455f78931db665fac003f4f181afc79fc628adb6f03","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:32462babfe852c0739ee466f466af33cad931ce959c8a860c10b57d2ef65e750","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f3fe40daa53cb177eb9ca956bda7425a2ad993b06b96a69b00ea89604500871","downloaded_from":"2026-09-10T00:49:20.979Z","last_downloaded_at":"2026-09-10T00:49:20.979Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478037","source_sha256":"dade6f8c1f0e7ac45da4a241c383f321989d092aa8eaaa741efe9ec690c77d02"}},{"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":"605-944-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15, with specific entity exceptions noted below.
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The guidance in this Subtopic does not apply to mortgage guaranty insurance entities.
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The Short-Duration Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument exceptions noted below.
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The guidance in the Short-Duration Contracts Subsections of this Subtopic applies only to short-duration contracts. See the Short-Duration Contracts Subsection of Section 944-20-15 for a discussion of what constitutes a short-duration contract.
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The Long-Duration Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument exceptions noted below.
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The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration contracts. See the Long-Duration Contracts Subsection of Section 944-20-15 for a discussion of what constitutes a long-duration contract.
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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 exceptions noted below.
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The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. See the Reinsurance Contracts Subsection of Section 944-20-15 for a discussion of what constitutes a reinsurance contract.
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The guidance in the Financial Guarantee Insurance Contracts Subsections of this Subtopic applies only to financial guarantee insurance contracts (which include financial guarantee reinsurance contracts).
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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 contract period, 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.
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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 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:
  1. a
    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.
  2. b
    If the ultimate premium cannot be reasonably estimated, the cost recovery method or the deposit method may be used until the ultimate premium becomes reasonably estimable.
","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":"
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. This includes premiums from whole-life contracts, guaranteed renewable term life contracts, title insurance contracts, and participating life insurance contracts that meet the criteria in paragraph 944-20-15-3.
","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":"
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. See Subtopic 944-40 for specific guidance.
","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":"
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.
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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 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.
","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":"
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.
","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":"
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.
","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":"
Paragraph superseded by Accounting Standards Update No. 2018-12.
","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":"
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 mortality benefit over the life of the contract.
","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":"
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.
","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":"
Paragraph superseded by Accounting Standards Update No. 2018-12.
","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":"
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 most of the services associated with the contract have been rendered by that time. However, the binder date is appropriate if the insurance entity is legally or contractually entitled to the premium on the binder date.
","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":"
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.
","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":"
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 that are expected to be paid to agents or others in the form of experience refunds or additional commissions. Contingent commissions receivable or payable shall be accrued over the period in which related income is recognized.
","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":"
Paragraph not used.
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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 other is to be used depending on the circumstances. As such, changes between these methods are not accounting changes. In addition, changes from the periodic method to the open year method would be seldom.
","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":"
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 not reported, are recognized as they occur. The periodic method shall be used to account for foreign reinsurance except in the circumstance described in the following paragraph. Only if reasonable estimates cannot be made currently, for the reason discussed in the following paragraph, shall the open year method be used.
","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":"
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 accordance with U.S. generally accepted accounting principles (GAAP), then the open year method shall be used. 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. The presence of uncertainties that may be inherent in estimating earned premiums is not an acceptable basis for using the open year method.
","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":"
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 balance to which they pertain. The underwriting balances shall be aggregated and each underwriting balance shall be kept open until, as discussed in paragraph 944-605-35-6, sufficient information becomes available to record a reasonable estimate of earned premiums.
","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":"
Amounts paid for prospective reinsurance of short-duration contracts that meet the conditions for reinsurance accounting shall be reported as prepaid reinsurance premiums.
","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":"
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 allocating reinsurance premiums to the prospective and retroactive portions of a contract. However, separate accounting for the prospective and retroactive portions of a contract may take place only when an allocation is practicable. 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. 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. Impracticable is used to mean that the prospective and retroactive provisions cannot be accounted for separately without incurring excessive costs. 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.
","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":"
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 recorded liabilities relating to the underlying reinsured contracts. If the recorded liabilities exceed the amounts paid, reinsurance recoverables shall be increased to reflect the difference and the resulting gain deferred.
","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":"
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.
","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":"
Paragraph not used.
","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":"
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 obligation under a financial guarantee insurance contract at initial recognition.
","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":"
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.
","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":"
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:
  1. a
    The insured principal amount outstanding in a given reporting period
  2. b
    The sum of each of the insured principal amounts outstanding for all periods.
","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":"
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):
  1. a
    The total present value of the premium due or expected to be collected over the period of the contract
  2. b
    The sum of all insured principal amounts outstanding during each reporting period over the period of the contract (either contract period or expected period).
Example 2 (see paragraph 944-605-55-17) illustrates the application of this guidance.
","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":"
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 944-605-55-19) illustrates the application of this guidance.
","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":"
The guidance in the following paragraph applies if both of the following conditions exist:
  1. a
    An expected period is used as discussed in paragraph 944-310-30-3
  2. b
    The expected period changes due to changes in prepayment assumptions.
","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":"
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 944-310-55 (see paragraph 944-310-55-1) illustrates the application of this guidance.
","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":"
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 944-30 as an expense.
","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":"
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 944-605-55-22) illustrates the application of this guidance.
","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"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts with Death or Other Insurance Benefit Features","paragraphs":[{"citation":"605-944-30-1","para":"30-1","html":"
A liability for unearned revenue to be recognized under paragraphs
944-605-25-5 through 25-7
and
944-605-25-9 through 25-10
shall be measured initially as the portion of such assessments that compensates the insurance entity for benefits to be provided in future periods.
","snippet":"A liability for unearned revenue to be recognized under paragraphs 944-605-25-5 through 25-7 and 944-605-25-9 through 25-10 shall be measured initially as the portion of such assessments that compensates the insurance en…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a552d9407514c3f9fb305c21dc64c4d4dfbd27bffd943cd31b3950ce9281cb96","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"citation":"605-944-30-2","para":"30-2","html":"
For contracts in which assessments are collected over a period significantly shorter than the period for which the contract is subject to mortality and morbidity risks, the assessment would be considered a front-end fee and accounted for under paragraphs
944-605-25-6 through 25-7
. The amounts amortized into income shall be considered assessments for purposes of this paragraph.
","snippet":"For contracts in which assessments are collected over a period significantly shorter than the period for which the contract is subject to mortality and morbidity risks, the assessment would be considered a front-end fee …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f426a3d19c85bb56d5d99db1f522fa5b4ecc80e69e97384939d43a5796afd9a8","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1dab17568736d2ff9ff64bf58cc5d914dc16e9c4aefc22e7059590be423065f","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"block":"Long-Duration Contracts","heading":"Limited-Payment Contracts","paragraphs":[{"citation":"605-944-30-2A","para":"30-2A","html":"
Assumptions used in measuring any gross premium deferred in accordance with paragraph 944-605-25-4A (that is, the deferred profit liability) shall be consistent with those used in estimating the liability for future policy benefits as described in paragraph 944-40-30-7.
","snippet":"Assumptions used in measuring any gross premium deferred in accordance with paragraph 944-605-25-4A (that is, the deferred profit liability) shall be consistent with those used in estimating the liability for future poli…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0ca2a06422ba60ac6ecf32012b283ec65c1eea0bb003a60bd742de89ae9a305","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0fcecdff6cb18379ea74724d0cbc5976600b07d029c8602502da310cc1f0d06","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"block":"Long-Duration Contracts","heading":"Retrospective and Contingent Commission Arrangements","paragraphs":[{"citation":"605-944-30-3","para":"30-3","html":"
The liability recognized under paragraph 944-605-25-14 shall be based on experience and the provisions of the contract.
","snippet":"The liability recognized under paragraph 944-605-25-14 shall be based on experience and the provisions of the contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1af4e8deb97c13fcbf4ad88e07b1cfa5489ce128fed0e94112c2ee21ecd260a9","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d9abbd08f4ec58473a280a31da339d826785b8472b5c2c0dc470607103fb30c","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"block":"Reinsurance Contracts","heading":"Reinsurance of Long-Duration Contracts","paragraphs":[{"citation":"605-944-30-4","para":"30-4","html":"
The difference, if any, between amounts paid for a reinsurance contract and the amount of the liabilities for policy benefits relating to the underlying reinsured contracts is part of the estimated cost to be amortized.
","snippet":"The difference, if any, between amounts paid for a reinsurance contract and the amount of the liabilities for policy benefits relating to the underlying reinsured contracts is part of the estimated cost to be amortized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8c22e960f6abaf59552d481411c9e7fd542f748182d37781b019cf6fec4cb1f","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a19e4e96e5223ca726fa1bdd7b02924bcad36e9d515cc0e2a6630f96ebb5b5d5","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"605-944-30-5","para":"30-5","html":"
Initial measurement of the unearned premium revenue recognized under paragraph 944-605-25-25 shall be equal to the present value of either of the following:
  1. a
    If the criteria in paragraph 944-310-30-3 are met and used, the premiums expected to be collected over the period of the financial guarantee insurance contract
  2. b
    If the criteria in paragraph 944-310-30-3 are not met, the premiums due.
","snippet":"Initial measurement of the unearned premium revenue recognized under paragraph 944-605-25-25 shall be equal to the present value of either of the following:\n(a) If the criteria in paragraph 944-310-30-3 are met and used,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc7378f2f1c7500919f0387dc399db521f6e3b70223ca3abd42d00dd71a5c9c3","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"citation":"605-944-30-6","para":"30-6","html":"
If the premium is a single premium received at the inception of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at the amount received.
","snippet":"If the premium is a single premium received at the inception of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at the amount received.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22abafa39eba86d812a3f275e01cc7235bdf2899cb78fb0df55d40daa746fdea","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"citation":"605-944-30-7","para":"30-7","html":"
If the premiums are received as payments over the period of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at an amount equal to the present value of the premiums due or expected to be collected over the period of the financial guarantee insurance contract. Example 1 (see paragraph 944-605-55-16) illustrates the application of this paragraph. Paragraph 944-310-30-2 provides guidance on the discount rate and the period used.
","snippet":"If the premiums are received as payments over the period of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at an amount equal to the present value of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03bfb861cdba49bf3611724bca3b766e01e1e4740af45831d497973689d92556","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2fc4465c19b229130328fd146421434b8b6000d7ad0b97b8cc54f008ca21f66b","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a97ae5f311f8862343e661b2174b453795d4532f35cace46d75592de9466c19","downloaded_from":"2026-09-10T00:49:31.248Z","last_downloaded_at":"2026-09-10T00:49:31.248Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477897","source_sha256":"ca496db8410a12fc67cf79ddfe8b13ad4733abc788847cba37156b4d6dfb893d"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":"Limited-Payment Contracts","paragraphs":[{"citation":"605-944-35-1","para":"35-1","html":"
Any gross premium deferred in accordance with paragraph 944-605-25-4A(that is, the deferred profit liability) shall be recognized in income in a constant relationship with insurance in force (if accounting for life insurance contracts) or with the amount of expected future benefit payments (if accounting for annuity contracts).
","snippet":"Any gross premium deferred in accordance with paragraph 944-605-25-4A(that is, the deferred profit liability) shall be recognized in income in a constant relationship with insurance in force (if accounting for life insur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d926a2d2ffd677ceddb33ecd75824695a36903df4b9a86efd4ca4bac0f744a0a","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-1A","para":"35-1A","html":"
The deferred profit liability shall be amortized in relation to the discounted amount of the insurance in force or expected future benefit payments, discounted as described in paragraph 944-40-30-9, and interest shall accrue to the unamortized balance. The use of interest in the amortization is consistent with the determination of the deferred profit using discounting.
","snippet":"The deferred profit liability shall be amortized in relation to the discounted amount of the insurance in force or expected future benefit payments, discounted as described in paragraph 944-40-30-9, and interest shall ac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86990d44b3783648a19c8a949246085403ecbc9143a4073501435206661ce647","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-1B","para":"35-1B","html":"
Assumptions shall be updated in subsequent accounting periods to determine changes in the deferred profit liability, contemporaneously with the updating of assumptions for the corresponding liability for future policy benefits (see paragraph 944-40-35-5). Cash flow assumptions shall be reviewed—and if there is a change, updated—on an annual basis, at the same time every year. Cash flow assumptions shall be updated in interim reporting periods if evidence suggests that earlier cash flow assumptions should be revised. The interest accretion rate shall remain the original discount rate used at contract issue date.
","snippet":"Assumptions shall be updated in subsequent accounting periods to determine changes in the deferred profit liability, contemporaneously with the updating of assumptions for the corresponding liability for future policy be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f8625e1e3c5634e989aedabd38017faca02ed31076cd930a9f3d075652b1eaa","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-1C","para":"35-1C","html":"
A related charge or credit to net income for the current reporting period as a result of updating cash flow assumptions at the level of aggregation at which reserves are calculated shall be determined as follows:
  1. a
    Cash flow assumptions used to calculate the deferred profit liability at contract issuance shall be updated in subsequent periods using actual historical experience and updated future cash flow assumptions.
  2. b
    The recalculated deferred profit liability as of the contract issue date shall be subsequently amortized in accordance with paragraph 944-605-35-1A to derive the revised deferred profit liability estimate as of the beginning of the current reporting period.
  3. c
    The revised deferred profit liability estimate calculated in (b) shall be compared with the carrying amount of the deferred profit liability as of the beginning of the current reporting period to determine the change in estimate adjustment to be recognized in net income for the current reporting period (see paragraph 944-40-45-4).
","snippet":"A related charge or credit to net income for the current reporting period as a result of updating cash flow assumptions at the level of aggregation at which reserves are calculated shall be determined as follows:\n(a) Cas…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27e818b16c5da2dfedf8681a8faa4a1166e280b7c4de9024c9815cecfffe4b67","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b012bf8b2a30cf28c3dcb259f41c9b623af74fa8cbe42f2e2447fd05ef6d9be4","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts","paragraphs":[{"citation":"605-944-35-2","para":"35-2","html":"
Amounts recognized as unearned revenue under paragraph 944-605-25-6 shall be recognized in income over the period benefited using the same assumptions and factors used to amortize capitalized acquisition costs under the Long-Duration Contracts Subsection of Section 944-30-35.
","snippet":"Amounts recognized as unearned revenue under paragraph 944-605-25-6 shall be recognized in income over the period benefited using the same assumptions and factors used to amortize capitalized acquisition costs under the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a982dcff919a2bd2d33b25917d9f74289c68a6bd301c4abe91bdd5b785acdb19","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-3","para":"35-3","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b6b2a30c86104e173985e67a612c7883836c80d97f73457dfe7eeb71d7bf5e2","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:baf949ca9c3af2aac9b31525b888b2f3d2ed2ccf34d88a374bf947dec2c665fc","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"block":"Reinsurance Contracts","heading":"Foreign Property and Liability Reinsurance—Open Year Method","paragraphs":[{"citation":"605-944-35-4","para":"35-4","html":"
Paragraph 944-605-25-17 explains that only if reasonable estimates cannot be made currently for the reason discussed in paragraph 944-605-25-18, shall the open year method be used.
","snippet":"Paragraph 944-605-25-17 explains that only if reasonable estimates cannot be made currently for the reason discussed in paragraph 944-605-25-18, shall the open year method be used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92f655171411e421cea5fd6c1749adfbe3b1b3698e238dedf6e3e1dce12c7bc0","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-5","para":"35-5","html":"
Under the open year method, underwriting results of foreign reinsurance shall not be included in the income statement until sufficient information becomes available to provide reasonable estimates of earned premiums. Instead, premiums, claims, commissions, and related direct taxes shall be included in the open underwriting balance to which they pertain. The underwriting balances shall be aggregated and each underwriting balance shall be kept open until sufficient information becomes available to record a reasonable estimate of earned premiums.
","snippet":"Under the open year method, underwriting results of foreign reinsurance shall not be included in the income statement until sufficient information becomes available to provide reasonable estimates of earned premiums. Ins…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:708cbca0b8f17c45a3febc33328b9356c3fc4b5013f8f32fbdb8498cbb9d752d","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-6","para":"35-6","html":"
The underwriting balance aggregated under the preceding paragraph shall be disaggregated and reported in the income statement as premiums, claims, commissions, and related direct taxes when earned premiums are reasonably determinable.
","snippet":"The underwriting balance aggregated under the preceding paragraph shall be disaggregated and reported in the income statement as premiums, claims, commissions, and related direct taxes when earned premiums are reasonably…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:11ddea3578bf55476812117d52fa55ca7cec8db7c67d6e73f551ed19afa95f93","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-7","para":"35-7","html":"
If it becomes probable that a loss has been incurred before an underwriting balance is closed, a provision for the loss shall be recorded. Examples of situations in which a provision may need to be recorded before an underwriting balance is closed include catastrophic losses, higher-than-expected claim frequency, significant unanticipated adverse events, or a negative open year account.
","snippet":"If it becomes probable that a loss has been incurred before an underwriting balance is closed, a provision for the loss shall be recorded. Examples of situations in which a provision may need to be recorded before an und…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:623a983e66fa7f5d5730c034c37d2144cb6d0caffe705cb5f19aa7b674b63387","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9476ddaccd7e6f99821f6a6f4026d669cc3f7d8d2c5582565a0a89f405597762","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"block":"Reinsurance Contracts","heading":"Reinsurance of Short-Duration Contracts","paragraphs":[{"citation":"605-944-35-8","para":"35-8","html":"
Prepaid reinsurance premiums recognized under paragraph 944-605-25-20 shall be amortized over the remaining contract period in proportion to the amount of insurance protection provided. If the amounts paid are subject to adjustment and can be reasonably estimated, the basis for amortization shall be the estimated ultimate amount to be paid.
","snippet":"Prepaid reinsurance premiums recognized under paragraph 944-605-25-20 shall be amortized over the remaining contract period in proportion to the amount of insurance protection provided. If the amounts paid are subject to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3eb0ddb230ec71dc5ce1336b9f523fe26a358adb30c6028fe0c758bb85d1c6a","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-9","para":"35-9","html":"
Any gain deferred under paragraph 944-605-25-22 shall be amortized over the estimated remaining settlement period. If the amounts and timing of the reinsurance recoveries can be reasonably estimated, the deferred gain shall be amortized using the effective interest rate inherent in the amount paid to the reinsurer and the estimated timing and amounts of recoveries from the reinsurer; that is, the interest method. Otherwise, the proportion of actual recoveries to total estimated recoveries (the recovery method) shall determine the amount of amortization.
","snippet":"Any gain deferred under paragraph 944-605-25-22 shall be amortized over the estimated remaining settlement period. If the amounts and timing of the reinsurance recoveries can be reasonably estimated, the deferred gain sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb63c1aaa04bb66a4630b3188d35766bd447084241ef4c9d307e4ac068783db3","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-10","para":"35-10","html":"
Amortization of deferred amounts arising from retroactive reinsurance under both the interest method and the recovery method is based on the ceding entity's estimates of the expected timing and total amount of cash flows. The timing of changes in those estimates shall not alter the recognition of the revenues and costs of reinsurance. Therefore, changes in estimates of the amount recoverable from the reinsurer shall be accounted for consistently both at the inception of and after the reinsurance transaction.
","snippet":"Amortization of deferred amounts arising from retroactive reinsurance under both the interest method and the recovery method is based on the ceding entity's estimates of the expected timing and total amount of cash flows…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8531606c224b4b89c26ae75539ce73ee0b7bc3bfe9e1a06f73b772ac97e4f84a","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-11","para":"35-11","html":"
Changes in the estimated amount of the liabilities relating to the underlying reinsured contracts shall be recognized in earnings in the period of the change.
","snippet":"Changes in the estimated amount of the liabilities relating to the underlying reinsured contracts shall be recognized in earnings in the period of the change.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59729484b4ff550e5d8a561ea80c3ce3041546f192918b405af5314796db488c","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-12","para":"35-12","html":"
Reinsurance recoverables shall reflect the related change in the amount recoverable from the reinsurer, and a gain to be deferred and amortized, as described in paragraph 944-605-25-22, shall be adjusted or established as a result. Decreases in the estimated amount of the liabilities shall reduce the related amount recoverable from the reinsurer and accordingly reduce previously deferred gains.
","snippet":"Reinsurance recoverables shall reflect the related change in the amount recoverable from the reinsurer, and a gain to be deferred and amortized, as described in paragraph 944-605-25-22, shall be adjusted or established a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c793cd7ffe57fdbf62109dc89f9d18980441ca9e150ee20c110634ce502e1d6a","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-13","para":"35-13","html":"
When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment shall be recognized in earnings in the period of the change so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. However, if the revised estimate of the liabilities is less than the amounts paid to the reinsurer, a loss shall not be deferred. The resulting difference shall be recognized in earnings immediately, as described in paragraph 944-605-25-23.
","snippet":"When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment shall be recognized in earnings in the period of the cha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2165142a7a7f8279774c6f6f7dc1939b38b63569dffaf401e757b5ca20a34fe","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:32e206c48194ba2a08847ae36e2039c2ef2636edfdb1f209d00bc696e7889f5b","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"block":"Reinsurance Contracts","heading":"Reinsurance of Long-Duration Contracts","paragraphs":[{"citation":"605-944-35-14","para":"35-14","html":"
Amortization of the estimated cost of reinsurance of long-duration contracts that meets the conditions for reinsurance accounting depends on whether the reinsurance contract is long-duration or short-duration. The cost shall be amortized over the remaining life of the underlying reinsured contracts if the reinsurance contract is long-duration, or over the contract period of the reinsurance if the reinsurance contract is short-duration.
","snippet":"Amortization of the estimated cost of reinsurance of long-duration contracts that meets the conditions for reinsurance accounting depends on whether the reinsurance contract is long-duration or short-duration. The cost s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce35b8de578645e187f244d80bcbdca38e92c5c25ae695e3ff05b82522ec9a8b","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"citation":"605-944-35-15","para":"35-15","html":"
The assumptions used in accounting for reinsurance costs shall be consistent with those used for the reinsured contracts.
","snippet":"The assumptions used in accounting for reinsurance costs shall be consistent with those used for the reinsured contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e5b6060ec70f78d4eaa0bd2dacee05a9a2db2eea7cbd9b8dcdf4d15c3a8fb5f","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b086272bb52b75cac72819ee21adf29969e8d133a6fa1c964def4ecc935e570","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"605-944-35-16","para":"35-16","html":"
In instances where a contract period is used as the period of the financial guarantee insurance contract to measure the unearned premium revenue an insurance entity shall adjust the unearned premium revenue to reflect early principal payments as they occur. The adjustment to the unearned premium revenue shall equal the adjustment to the premium receivable.
","snippet":"In instances where a contract period is used as the period of the financial guarantee insurance contract to measure the unearned premium revenue an insurance entity shall adjust the unearned premium revenue to reflect ea…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0171d151a48d405c676ea3130f0fa8f0077fa9b38ee970b7a4985ad7e047249","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87da062ff2b19df4d150b9d7f1284eb01e745081f09d36c0bbd03bd87921c6a6","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25ab330c177b4c7f479256ba48612c69f53d2f99150a21bd295f46384811aa70","downloaded_from":"2026-09-10T00:49:33.589Z","last_downloaded_at":"2026-09-10T00:49:33.589Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477947","source_sha256":"f9de828c8ecc8e3a8295d46c819f93f9c597a6d4d88ef97fa10adb4b5d254737"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Reinsurance Contracts","heading":"All Reinsurance Contracts","paragraphs":[{"citation":"605-944-45-1","para":"45-1","html":"
The amounts of earned premiums ceded and recoveries recognized under reinsurance contracts shall either be:
  1. a
    Reported in the statement of earnings, as separate line items or parenthetically
  2. b
    Disclosed in the notes to financial statements under paragraph 944-605-50-1.
","snippet":"The amounts of earned premiums ceded and recoveries recognized under reinsurance contracts shall either be:\n(a) Reported in the statement of earnings, as separate line items or parenthetically\n(b) Disclosed in the notes …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c26f57f8f8b15abbb9a5d5af38fc3d3bda57f99040de929d8b42319c4045ae3d","downloaded_from":"2026-09-10T00:49:36.452Z","last_downloaded_at":"2026-09-10T00:49:36.452Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478832","source_sha256":"b2a7450feb26cab99aeb6a6f4a9abe89ddf1c428288f4ba981b691bd4a4ea4a8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7c76d1e27887a12cbda21de63d07d1f8995605bee07ba3437e5a25e005494c1","downloaded_from":"2026-09-10T00:49:36.452Z","last_downloaded_at":"2026-09-10T00:49:36.452Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478832","source_sha256":"b2a7450feb26cab99aeb6a6f4a9abe89ddf1c428288f4ba981b691bd4a4ea4a8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8640e36eb338cf93eaea0598681a02764c6efb80d5c699b1332cd46d95474a28","downloaded_from":"2026-09-10T00:49:36.452Z","last_downloaded_at":"2026-09-10T00:49:36.452Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478832","source_sha256":"b2a7450feb26cab99aeb6a6f4a9abe89ddf1c428288f4ba981b691bd4a4ea4a8"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":"Reinsurance Contracts","heading":"All Reinsurance Contracts","paragraphs":[{"citation":"605-944-50-1","para":"50-1","html":"
All insurance entities shall disclose all of the following in their financial statements:
  1. a
    For all reinsurance contracts, both of the following:
    1. 1
      Methods used for income recognition on reinsurance contracts
    2. 2
      If not reported under paragraph 944-605-45-1 in the statement of earnings, as separate line items or parenthetically, the amounts of earned premiums ceded and recoveries recognized under reinsurance contracts.
  2. b
    For short-duration contracts, all of the following on both a written basis and an earned basis:
    1. 1
      Premiums from direct business
    2. 2
      Reinsurance assumed
    3. 3
      Reinsurance ceded.
  3. c
    For long-duration contracts, all of the following:
    1. 1
      Premiums and amounts assessed against policyholders from direct business
    2. 2
      Reinsurance assumed and ceded
    3. 3
      Premiums and amounts earned.
  4. d
    For foreign reinsurance accounted for by the open year method, all of the following shall be disclosed for each period for which an income statement is presented:
    1. 1
      The amounts of premiums, claims, and expenses recognized as income on closing underwriting balances
    2. 2
      The additions to underwriting balances for the year for reported premiums, claims, and expenses.
  5. e
    The amounts of premiums, claims, and expenses in the underwriting account for each balance sheet presented.
","snippet":"All insurance entities shall disclose all of the following in their financial statements:\n(a) For all reinsurance contracts, both of the following:\n(1) Methods used for income recognition on reinsurance contracts\n(2) If …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9b4ef8d61df509a5b4a509081d6294fd02837795c5a080fd4c435197b72ff85b","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}},{"citation":"605-944-50-2","para":"50-2","html":"
Appropriate disclosure of both of the following items is encouraged:
  1. a
    The extent to which reinsurance contracts indemnify the ceding entity against loss or liability relating to insurance risk
  2. b
    Indemnification policies as part of the required disclosure in the preceding paragraph about the nature and effect of reinsurance transactions.
","snippet":"Appropriate disclosure of both of the following items is encouraged:\n(a) The extent to which reinsurance contracts indemnify the ceding entity against loss or liability relating to insurance risk\n(b) Indemnification poli…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0071ee962ea9cee160d3c192ef213a615018727c2cbdafe7412d95243bedb947","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}},{"citation":"605-944-50-3","para":"50-3","html":"
Disclosure in the financial statements of an insurance entity's accounting policies under Topic 250 shall include a description of the methods used to account for foreign reinsurance.
","snippet":"Disclosure in the financial statements of an insurance entity's accounting policies under Topic 250 shall include a description of the methods used to account for foreign reinsurance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2fcddba75365d7b74f09443cfccf8d63ac5df2cbc1282723418d3d2791b4cddb","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:524db482434977996f42f3fa365e76bb449670cb77d18b262e546cd2bb626a3e","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"605-944-50-4","para":"50-4","html":"
To meet the disclosure objective in paragraph 944-20-50-7, an insurance entity shall disclose all of the following information for each annual period and interim period:
  1. a
    For premium revenue recognition that has been accelerated, the amount and reasons for acceleration
  2. b
    A schedule of the future expected premium revenue as of the latest date of the statement of financial position detailing both of the following:
    1. 1
      The four quarters of the subsequent annual period and each of the next four annual periods
    2. 2
      The remaining periods aggregated in five-year increments.
","snippet":"To meet the disclosure objective in paragraph 944-20-50-7, an insurance entity shall disclose all of the following information for each annual period and interim period:\n(a) For premium revenue recognition that has been …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:068e1aa2fbe6871b99336f9881acdf06aa4d7a0d3f9659493d1b39335495c932","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1684552111d722c2464feec94bef535246598509c7bd63355d1286df4c66f4f3","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d5ac361fc8f2b65e79635a8dd8469ae0ce6d1a6ae6864ab3771a60388dc815b","downloaded_from":"2026-09-10T00:49:39.778Z","last_downloaded_at":"2026-09-10T00:49:39.778Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479032","source_sha256":"70bbf837fb6710beedc8b1c8afa5f4659ed9bb67b17e0e43235a379ae944e229"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":"Reinsurance Contracts","heading":"Implementation Guidance","paragraphs":[{"citation":"605-944-55-1","para":"55-1","html":"
If a reinsurance contract provides the ceding entity's policyholders and claimants with the right to recover their claims directly from the reinsurer (a cut-through provision), the ceding entity shall not net the recoverable due from the reinsurer against the gross loss obligations on the underlying insurance contracts. As stated in paragraphs
944-20-40-3 through 40-4
, reinsurance contracts in which a ceding entity is not relieved of its legal liability to its policyholder do not result in removal of the related assets and liabilities from the ceding entity's financial statements. Amounts recoverable and payable between the ceding entity and a reinsurer may be offset only if a right of setoff exists, as defined in Subtopic 210-20.
","snippet":"If a reinsurance contract provides the ceding entity's policyholders and claimants with the right to recover their claims directly from the reinsurer (a cut-through provision), the ceding entity shall not net the recover…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dbbacc18befcc0ec44a0b835c3ecb24d2ea807cc432aa58929545f9e27b878e8","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-2","para":"55-2","html":"
Similarly, if the circumstances discussed in the preceding paragraph involved retroactive reinsurance of short-duration insurance policies that resulted in a gain to the ceding entity, the gain shall not be recognized in income immediately. Paragraph 944-40-25-33 states that reinsurance contracts do not result in immediate recognition of gains unless the reinsurance contract is a legal replacement of one insurer by another and thereby extinguishes the ceding entity's liability to the policyholder.
","snippet":"Similarly, if the circumstances discussed in the preceding paragraph involved retroactive reinsurance of short-duration insurance policies that resulted in a gain to the ceding entity, the gain shall not be recognized in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96bfb9b0149d6a16601733d47b37c9dde45ba7d5cd892318a474b90910237586","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-3","para":"55-3","html":"
Under the definition of settlement period, if the ceding entity does not expect to receive any recoveries because the reinsurer has agreed to reimburse claimants under the reinsured contracts directly, the settlement period shall not be considered to have ended on the effective date of the contract. Unless the reinsurance contract results in legal replacement of one reinsurer by another, a gain shall not be recognized at the inception of the contract. In the circumstances discussed in paragraph 944-605-55-1 the reinsurer is substantively acting as disbursing agent for the ceding entity. Therefore, the ceding entity cannot be said to have recovered amounts due from the reinsurer before payment is made to the claimant.
","snippet":"Under the definition of settlement period, if the ceding entity does not expect to receive any recoveries because the reinsurer has agreed to reimburse claimants under the reinsured contracts directly, the settlement per…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8dd3f790057840ef9c4ce7b4dd49e9ab7ab739b31845a75e2e94f89d28e0092a","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-4","para":"55-4","html":"
This implementation guidance addresses circumstances in which a ceding entity enters into a retroactive contract to reinsure short-duration insurance policies that gives rise to a deferred gain. Specifically, it addresses whether, if the reinsurer prepays its obligation under the contract, the ceding entity may recognize its deferred gain at the time the prepayment is received.
","snippet":"This implementation guidance addresses circumstances in which a ceding entity enters into a retroactive contract to reinsure short-duration insurance policies that gives rise to a deferred gain. Specifically, it addresse…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:727dba4d8210605e6c960936dea06825ea295fcdc415b917d01042ea8dce61f3","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-5","para":"55-5","html":"
The amortization period (the settlement period) is based on the period over which the reinsurer settles its obligations to the ceding entity, and it may be appropriate to recognize the gain over the expected prepayment period. However, all of the facts and circumstances shall be considered to determine whether the reinsurer has substantively settled its obligation to the ceding entity. For example, if the ceding entity agrees to compensate the reinsurer for the prepayment, such as by crediting the reinsurer with investment income on prepaid amounts or balances held, the reinsurer has not, in substance, settled its obligation but rather has made a deposit with the ceding entity that shall be accounted for accordingly.
","snippet":"The amortization period (the settlement period) is based on the period over which the reinsurer settles its obligations to the ceding entity, and it may be appropriate to recognize the gain over the expected prepayment p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c9971ab6690b066ac9c4471dfcc72cb8c3110b4c80553acb90825a8b3d0ee06","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44a9cfa9462d7979d1851a9707ab8b8fdbe3cac2c2e8f494043bd2c7aefcecdf","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"block":"Reinsurance Contracts","heading":"Illustrations","paragraphs":[{"citation":"605-944-55-6","para":"55-6","html":"
The following Cases illustrate how the requirement in paragraphs
944-605-25-22 through 25-23
that gains arising from retroactive reinsurance be deferred and losses be charged to expense immediately is affected by the requirements in paragraphs
944-605-35-11 through 35-13
for a catch-up adjustment to reflect changes in estimates of amounts recoverable from reinsurers:
  1. a
    Adverse development occurs (Case A)
  2. b
    Favorable development occurs (Case B).
","snippet":"The following Cases illustrate how the requirement in paragraphs 944-605-25-22 through 25-23 that gains arising from retroactive reinsurance be deferred and losses be charged to expense immediately is affected by the req…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1f6c81beb3d41485e02af09ed17920b7fff98c5b6cbc4be029c2ba8954190f5","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-7","para":"55-7","html":"
Cases A and B share all of the following assumptions:
  1. a
    Entity A pays $100 of premium in 1993 for $150 limit of retroactive reinsurance.
  2. b
    Entity A has recorded related liabilities of $110.
  3. c
    There is a 5-year settlement period.
  4. d
    At inception, Entity A recorded a reinsurance recoverable of $110 and a deferred gain of $10.
","snippet":"Cases A and B share all of the following assumptions:\n(a) Entity A pays $100 of premium in 1993 for $150 limit of retroactive reinsurance.\n(b) Entity A has recorded related liabilities of $110.\n(c) There is a 5-year sett…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8663d6370ef55ef720a013b432f85c4958ad816511434bb98a56d4df1a5ea180","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-8","para":"55-8","html":"
If an adverse development of $30 occurred in the first year, paragraphs
944-605-35-11 through 35-13
require an adjustment to bring the balance of the deferred gain to the balance that would have existed had the revised estimate been available at inception, less cumulative amortization. The balance that would have existed at inception is $40 ($140 reserves less $100 premium) and cumulative amortization to date is $8 ($40/5 years). Therefore, a net $32 deferred gain balance is required. Entity A would defer $30 of additional gain ($40 less the $10 already recorded) and credit income for $8 amortization. Straight-line amortization is used for simplicity of illustration rather than the interest method or recovery method as required by paragraph 944-605-35-9.
","snippet":"If an adverse development of $30 occurred in the first year, paragraphs 944-605-35-11 through 35-13 require an adjustment to bring the balance of the deferred gain to the balance that would have existed had the revised e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7a7c7152600f1d7b9bd54908ea415f5f1496a2576d42e652d9fc0bdaa535729","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-9","para":"55-9","html":"
If a favorable development of $15 occurred in the first year, the amount of ceded premiums ($100) would exceed the related revised liabilities ($95). Paragraphs
944-605-35-11 through 35-13
state that decreases in the estimated amount of the liabilities reduce the related amount recoverable and reduce previously deferred gains. Further, if the revised estimate of the liabilities is less than the amounts paid to the reinsurer, the difference shall be charged to earnings. Entity A would therefore reduce the reinsurance recoverable by $15, reduce the $10 deferred gain to zero, and charge $5 to earnings.
","snippet":"If a favorable development of $15 occurred in the first year, the amount of ceded premiums ($100) would exceed the related revised liabilities ($95). Paragraphs 944-605-35-11 through 35-13 state that decreases in the est…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e8ba19e02f4c9d8272584805f000a6bb19d1b136d2d1cdfc7b4caf346865a32","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-10","para":"55-10","html":"
This Example illustrates the application of the requirements in the Reinsurance Contracts Subsections of this Subtopic to a property-casualty insurance entity (Property-Casualty Insurance Entity) that issues short-duration contracts.
","snippet":"This Example illustrates the application of the requirements in the Reinsurance Contracts Subsections of this Subtopic to a property-casualty insurance entity (Property-Casualty Insurance Entity) that issues short-durati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4b26c86eebc3c244bcb0c5625dcbba34c04ee6457229751efa22c1916399aaf","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-11","para":"55-11","html":"
Property-Casualty Insurance Entity's statement of financial position follows.
  1. a
    The Reinsurance Contracts Subsections of this Subtopic require that estimated amounts recoverable from reinsurers include amounts related to paid and unpaid claims and claims incurred but not reported. Details of the amounts comprising reinsurance recoverables may be presented separately.
  2. b
    Prepaid reinsurance premiums include amounts paid to reinsurers relating to the unexpired portion of reinsured policies, often referred to as ceded unearned premiums.
  3. c
    Alternatively, the effect of reinsurance on premiums earned and claim costs may be shown parenthetically or may be disclosed. An illustration of a parenthetical presentation follows.
","snippet":"Property-Casualty Insurance Entity's statement of financial position follows.\n(a) The Reinsurance Contracts Subsections of this Subtopic require that estimated amounts recoverable from reinsurers include amounts related …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:536600d158c8e8169d18dcf132c18deacc12d4af7d00dc218a3cdeee19381517","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-12","para":"55-12","html":"
Property-Casualty Insurance Entity's related notes to financial statements follow.
","snippet":"Property-Casualty Insurance Entity's related notes to financial statements follow.\nProperty-Casualty Insurance Entity— Notes to Financial Statements\nSummary of Significant Accounting Policies\nIn the normal course of busi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61fa84c012c09ff47c3f6c0986e319ca1ba2d214e2465c606781b3fa472403d5","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-13","para":"55-13","html":"
This Example illustrates the application of the requirements in the Reinsurance Contracts Subsections of this Subtopic to a life insurance entity (Life Insurance Entity) that issues long-duration contracts.
","snippet":"This Example illustrates the application of the requirements in the Reinsurance Contracts Subsections of this Subtopic to a life insurance entity (Life Insurance Entity) that issues long-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22a30e548ef14a29214bdd2d01a16cc359d90f2f1c2356e014eba426e1008328","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-14","para":"55-14","html":"
Life Insurance Entity's statement of financial position follows.
","snippet":"Life Insurance Entity's statement of financial position follows.\n(a) The Reinsurance Contracts Subsections of this Subtopic require that estimated amounts recoverable from reinsurers include amounts related to paid and u…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ced874c07f9b7ab4bfc89f5faeedcb3321fceea0ef5c406dc9e0697d57c07098","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-15","para":"55-15","html":"
Life Insurance Entity's related notes to financial statements follow.
","snippet":"Life Insurance Entity's related notes to financial statements follow.\nLife Insurance Entity—Notes to Financial Statements\nSummary of Significant Accounting Policies\nIn the normal course of business, the Entity seeks to l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73f671cad8c2a94340d9da548ac7bf843a35502aed88f7c2eee8e41fca823886","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea8df9e823e90c90627e95cc91d1becbe67284195ae390d30e33758b81d49171","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Illustrations","paragraphs":[{"citation":"605-944-55-16","para":"55-16","html":"
This example illustrates the application of paragraph 944-605-30-7, which states that if the premiums are received as payments over the period of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at an amount equal to the present value of the premiums due or expected to be collected over the period of the financial guarantee insurance contract. For example, if the insurance entity expects to receive total premiums due over the period of the financial guarantee insurance contract of $28 million and the present value of that amount is $24.3 million, both the unearned premium revenue and the premium receivable initially shall be recognized at $24.3 million.
","snippet":"This example illustrates the application of paragraph 944-605-30-7, which states that if the premiums are received as payments over the period of the financial guarantee insurance contract, the insurance entity shall ini…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:095841fb91d475607319389c7067bf44170d5abe90b81fe1f8c63014f2a70851","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-17","para":"55-17","html":"
This Example illustrates the application of paragraphs
944-605-25-27 through 25-28
to insured principal payments made over the period of a contract. On January 1, 20X0, an insurance entity issues a single-premium financial guarantee insurance contract for a financial obligation (municipal bond) with a contract period of 10 years. The premium amount is $5 million. Insured principal payments of $100 million will be made by the issuer of the bond over the period of the contract. The contractual schedule of expected insured principal payments follows.
","snippet":"This Example illustrates the application of paragraphs 944-605-25-27 through 25-28 to insured principal payments made over the period of a contract. On January 1, 20X0, an insurance entity issues a single-premium financi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08100e9a90aad27721a49f18b71a03efe53937a328bf695b70e8a1ece0673ce3","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-18","para":"55-18","html":"
The ratio of the premium to the sum of all contractual insured principal amounts outstanding during each reporting period (the constant rate) is 0.00877193 (calculated as $5 million divided by $570 million). Accordingly, the insurance entity would recognize $877,193 of premium revenue (calculated as $100 million of insured principal amount outstanding multiplied by 0.00877193) in the first year of the contract. In the second year of the contract, the insurance entity would recognize $833,333 (calculated as $95 million multiplied by 0.00877193) of premium revenue. Thus, premium revenue is recognized based on the insurance protection being provided (represented by the constant rate and the insured principal amounts outstanding).
","snippet":"The ratio of the premium to the sum of all contractual insured principal amounts outstanding during each reporting period (the constant rate) is 0.00877193 (calculated as $5 million divided by $570 million). Accordingly,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f684e552a98fab460eb4f143f2681b5baa95f6e8ac18ca31fb96b259c9050070","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-19","para":"55-19","html":"
The Example illustrates the application of paragraph 944-605-25-29 to an insured principal payment made at the end of period of a contract. Assume all of the following:
  1. a
    On January 1, 200X, an insurance entity issues a single-premium financial guarantee insurance contract for a financial obligation (a zero-coupon municipal bond).
  2. b
    The insured financial obligation was issued at $61.4 million, resulting in an effective yield of 5 percent.
  3. c
    The premium amount is $5 million.
  4. d
    The insured principal payment of $100 million will be made by the issuer of the bond in total at the end of the 10-year period of the contract.
","snippet":"The Example illustrates the application of paragraph 944-605-25-29 to an insured principal payment made at the end of period of a contract. Assume all of the following:\n(a) On January 1, 200X, an insurance entity issues …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c085ecca4b5fc6560b9b89c48b482da4e45b3922be48501755855cc2c91dc11","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-20","para":"55-20","html":"
In this Example, the insured accreted principal amount outstanding represents the obligation of the insurance entity. The schedule of the insured accreted principal amounts outstanding during each reporting period follows.
","snippet":"In this Example, the insured accreted principal amount outstanding represents the obligation of the insurance entity. The schedule of the insured accreted principal amounts outstanding during each reporting period follow…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e645d24160375b839a87e5c6ce49cbd37f3510acb7acda4cdc6af2ef51483e74","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-21","para":"55-21","html":"
The ratio of the premium to the sum of the insured accreted principal amounts outstanding (the constant rate) is 0.006474168 (calculated as $5 million divided by $772.3 million). Accordingly, the insurance entity would recognize $397,514 of premium revenue (calculated as $61.4 million of insured accreted principal amount outstanding multiplied by 0.006474168) in the first year of the contract. In accordance with the Financial Guarantee Insurance Contracts Subsection of Section 944-605-25, premium revenue is recognized based on the insurance protection being provided (represented by the constant rate and the insured accreted principal amount outstanding).
","snippet":"The ratio of the premium to the sum of the insured accreted principal amounts outstanding (the constant rate) is 0.006474168 (calculated as $5 million divided by $772.3 million). Accordingly, the insurance entity would r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d781d0f454abc743e617827c5ae9a1652173d6296dcc869642e80080a632d482","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-22","para":"55-22","html":"
This Example illustrates the application of paragraphs
944-605-25-32 through 25-33
to the early retirement and replacement of an insured financial obligation if the same insurance entity insured the new financial obligation. This Example makes all of the following assumptions:
  1. a
    On January 1, 20X0, an insurance entity issues a nonrefundable, single premium financial guarantee insurance contract for a 30-year financial obligation (municipal bond).
  2. b
    The premium amount is $5 million.
  3. c
    On the municipal bond's 10th anniversary, the issuer of the insured financial obligation retires the municipal bond.
  4. d
    Premium recognized by the insurance entity for the financial guarantee insurance contract over the first 10 years was $2 million.
","snippet":"This Example illustrates the application of paragraphs 944-605-25-32 through 25-33 to the early retirement and replacement of an insured financial obligation if the same insurance entity insured the new financial obligat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:039ca68f3605ba77370e963113182ec16a1bbd705472d5dedd75585ea3cab8a0","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-23","para":"55-23","html":"
At early retirement on the 10th anniversary, the insurance entity would recognize as premium revenue the remaining unearned premium revenue ($3 million) because the risk to the insurance entity is extinguished. In addition, any remaining associated deferred acquisition costs are expensed.
","snippet":"At early retirement on the 10th anniversary, the insurance entity would recognize as premium revenue the remaining unearned premium revenue ($3 million) because the risk to the insurance entity is extinguished. In additi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8161a22fe398c873c61b71b3fc6039d35d9e3c5b1795358b85c25acfad3329f","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-24","para":"55-24","html":"
This Example makes all of the following further assumptions:
  1. a
    The issuer of the financial obligation facilitated the early retirement of the municipal bond by issuing a new municipal bond at a lower interest rate.
  2. b
    The same insurance entity insures the new municipal bond.
  3. c
    The premium amount for the financial guarantee insurance contract for the new financial obligation is $3 million.
  4. d
    The amount of premium charged to insure a similar financial obligation in a separate standalone transaction is $4 million.
","snippet":"This Example makes all of the following further assumptions:\n(a) The issuer of the financial obligation facilitated the early retirement of the municipal bond by issuing a new municipal bond at a lower interest rate.\n(b)…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd480c35b75e14671d4f1c68216d36362470368072671f15c0615f73bf395b14","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}},{"citation":"605-944-55-25","para":"55-25","html":"
The insurance entity would recognize unearned premium revenue of $4 million. It also would recognize a debit to earnings in the amount of $1 million. This represents the difference between the amount of premium charged ($3 million) and the amount of premium that would be charged for a similar financial obligation in a separate standalone transaction.
","snippet":"The insurance entity would recognize unearned premium revenue of $4 million. It also would recognize a debit to earnings in the amount of $1 million. This represents the difference between the amount of premium charged (…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bebf92761fd85491a849a1a04bd6e9ee9ab49ac69e63f832640605d491a74cc","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a69e6d316a7ce4b650abe1dd36e97d97526e246b5bc5a4525cf58b1b1bc4ac1a","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff651245d2e9066870dedd533e4f755b2afa5703f2324ea30d49286a8e4fd2ad","downloaded_from":"2026-09-10T00:49:43.753Z","last_downloaded_at":"2026-09-10T00:49:43.753Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477548","source_sha256":"0517a379415598e87253ee658813ee6611f6b0fe4668572f3450a21243b33320"}}],"enrichment":{"summary":"ASC 944-605 governs when and how insurance entities recognize premium revenue, split into short-duration, long-duration, reinsurance, and financial guarantee subsections. Short-duration premiums are earned over the contract (or risk) period in proportion to insurance protection provided; long-duration premiums are recognized when due from policyholders; universal life-type contract revenue is limited to amounts assessed against policyholders, with front-end fees deferred as unearned revenue. Reinsurance sections address prepaid reinsurance premiums, deferral and amortization of retroactive reinsurance gains, and the open year versus periodic method for foreign reinsurance.","key_points":["Short-duration premiums are recognized as revenue over the contract period (or period of risk if significantly different) in proportion to the insurance protection provided, generally evenly (944-605-25-1); if the ultimate premium is not reasonably estimable, the cost recovery or deposit method may be used (944-605-25-2).","Long-duration contract premiums are recognized as revenue over the premium-paying period when due from policyholders (944-605-25-3), and gross premium in excess of net premium on limited-payment contracts is deferred as a deferred profit liability (944-605-25-4A) recognized in constant relationship to insurance in force or expected future benefit payments (944-605-35-1 through 35-1C).","Premiums collected on universal life-type contracts are not revenue; revenue is the amounts assessed against policyholders in the period assessed, with assessments for future services and front-end/initiation fees recorded as unearned revenue (944-605-25-5 through 25-7) and amortized using the same assumptions used for deferred acquisition costs (944-605-35-2).","Title insurance premiums are recognized on the effective date of the contract (or binder date if the entity is legally or contractually entitled to the premium) (944-605-25-12), and agent-issued contracts are recognized when agents are entitled to premiums if reasonably estimable (944-605-25-13).","Prospective reinsurance amounts paid are reported as prepaid reinsurance premiums amortized over the remaining contract period in proportion to protection provided (944-605-25-20; 944-605-35-8); retroactive reinsurance gains (liabilities exceeding amounts paid) are deferred and amortized by the interest or recovery method (944-605-25-22; 944-605-35-9), while excess of amounts paid over liabilities is charged to earnings immediately (944-605-25-23).","Foreign reinsurance must use the periodic method unless the foreign ceding entity cannot supply information to estimate ultimate premiums and periods under U.S. GAAP, in which case the open year method defers premiums, claims, commissions, and direct taxes in an open underwriting balance until earned premiums are reasonably estimable (944-605-25-17 through 25-19; 944-605-35-5 through 35-7).","For financial guarantee insurance contracts, an unearned premium revenue liability (the stand-ready obligation) is recognized at inception measured at the premium received or the present value of premiums due/expected (944-605-25-25; 944-605-30-5 through 30-7) and released to revenue using a constant rate applied to insured principal amounts outstanding (944-605-25-27 through 25-29); on a refunding, remaining nonrefundable unearned premium and deferred acquisition costs are recognized immediately (944-605-25-32 through 25-33)."],"categories":["Revenue","Industry-specific","Recognition","Subsequent measurement"],"audience_level":"advanced","student_note":"Insurance revenue recognition is largely carved out of ASC 606, so know that \"premium collected\" is not automatically \"revenue\"—for universal life-type contracts only assessments are revenue, and for retroactive reinsurance a day-one gain must be deferred (losses, by contrast, hit earnings immediately). The most common error is applying general revenue models or netting reinsurance recoverables against gross liabilities when no right of setoff exists.","related_topics":["944-40","944-20","944-30","944-310","210-20","606"],"key_concepts":["premium revenue recognition","short-duration and long-duration contracts","universal life-type contracts","unearned revenue and front-end fees","deferred profit liability","retroactive reinsurance deferred gain","open year method","financial guarantee unearned premium revenue"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bde544212ad213f3d158c693d25b17a0743266aa90da8dc3656580abc17bd5d8","downloaded_from":"2026-09-10T00:49:17.918Z","last_downloaded_at":"2026-09-10T00:49:46.481Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"944-20","title":"Insurance Activities","topic_title":"Financial Services—Insurance","score":0.8622,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fb83037d25a618041f7f27ecb89cce5b9c1e39b1087ddce9ecca73f5c3d9ddb","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-944","title":"Financial 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