# ASC 720-954-35: Other Expenses — Health Care Entities — 35 Subsequent Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/720/954/#35-subsequent-measurement)

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## ASC 720-954-35: 35 Subsequent Measurement

[Read section](https://asc.understandingaccounting.org/asc/720/954/#35-subsequent-measurement)

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#### Retrospectively Rated Premiums

##### [720-954-35-1](https://asc.understandingaccounting.org/asc/720/954/#720-954-35-1)

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A health care entity insured under a retrospectively rated policy whose ultimate premium is based primarily on the experience of a group of health care entities amortizes the initial premium to expense on a pro rata basis over the policy term.

#### Medical Malpractice Claims Insured by Captive Insurance Entities

##### [720-954-35-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-35-2)

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A health care entity insured by an unconsolidated multiprovider captive insurance entity for medical malpractice claims under a retrospectively rated policy based primarily on the experience of a group of health care entities shall account for such insurance as indicated in paragraph [954-720-25-2](https://asc.understandingaccounting.org/asc/720/954/#720-954-25-2). However, the health care entity shall consider whether the economic substance of the multiprovider captive insurance entity is sufficient to relieve the health care entity from further liability.

##### [720-954-35-3](https://asc.understandingaccounting.org/asc/720/954/#720-954-35-3)

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[Paragraph superseded by Accounting Standards Update No. 2010-24](https://asc.understandingaccounting.org/updates/asu-2010-24/).