# ASC 944-40-15: Financial Services—Insurance — Claim Costs and Liabilities for Future Policy Benefits — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/944/40/#15-scope-and-scope-exceptions) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:aa87efc631a7ca4e71b8a16bc898fb4c4243d5713201caa8e11c9d6eba836456 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 944-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/944/40/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [944-40-15-1](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:45410c6d7ece42d9c1ca1975685e37f1c86370075a0ff50743faaced07d51346 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Entities ##### [944-40-15-2](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:eed64611baea3a662943e12dcdba09d534704587251f4527378514c154704787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not apply to [mortgage guaranty insurance entities](https://asc.understandingaccounting.org/glossary/m/#mortgage-guaranty-insurance-entity "An insurance entity that issues insurance contracts that guarantee lenders, such as savings and loan associations, against nonpayment by mortgagors."). ### Short-Duration Contracts #### Overall Guidance ##### [944-40-15-3](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:49778b2e58d2c42667d816f032441cfab1dd9674707aa2ba7f439a686a233bf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Short-Duration Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the [General Subsection](https://asc.understandingaccounting.org/asc/944/40/#15-scope-and-scope-exceptions) of this Section, with specific instrument qualifications noted below. #### Instruments ##### [944-40-15-4](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:021b1a2b42eec4790599383ada6001175bf099954121904fc054a13c4037f1c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Short-Duration Contracts Subsections of this Subtopic applies only to short-duration contracts. See the [Short-Duration Contracts Subsection](https://asc.understandingaccounting.org/asc/944/20/#15-scope-and-scope-exceptions) of Section 944-20-15 for a discussion of what constitutes a short-duration contract. ### Long-Duration Contracts #### Overall Guidance ##### [944-40-15-5](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:f8ab9293fd1c0a2d01338b6cfb9f9b040482018ae203fdcf7bd4948db1a360eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Long-Duration Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the [General Subsection](https://asc.understandingaccounting.org/asc/944/40/#15-scope-and-scope-exceptions) of this Section, with specific instrument qualifications noted below. #### Instruments ##### [944-40-15-6](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:a67fedebd3225dc8d9cc0cb6f2c69fbd12de663c22b463a716a2daabc68c1881 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Long-Duration Contracts Subsections of this Subtopic applies to long-duration contracts, including [investment contracts](https://asc.understandingaccounting.org/glossary/i/#investment-contracts "Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.") with respect to nontraditional contract benefits referenced in paragraph [944-40-25-25B](https://asc.understandingaccounting.org/asc/944/40/#944-40-25-25B). See the [Long-Duration Contracts Subsection](https://asc.understandingaccounting.org/asc/944/20/#15-scope-and-scope-exceptions) of Section 944-20-15 for a discussion of what constitutes a long-duration contract. ### Reinsurance Contracts #### Overall Guidance ##### [944-40-15-7](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:9186cbeefdbaa876f83f66a90aa22db8cdfd3863d0ac9a590055712febc14a70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the [General Subsection](https://asc.understandingaccounting.org/asc/944/40/#15-scope-and-scope-exceptions) of this Section, with specific instrument qualifications noted below. #### Instruments ##### [944-40-15-8](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:7bb88b21439fd2b7198b8a8867b165d54801744d986d9138b57bf13506954cb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contracts. For guidance on identifying a reinsurance contract, see the [Reinsurance Contracts Subsection](https://asc.understandingaccounting.org/asc/944/20/#15-scope-and-scope-exceptions) of Section 944-20-15. ### Financial Guarantee Insurance Contracts ##### [944-40-15-9](https://asc.understandingaccounting.org/asc/944/40/#944-40-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:16:31.680Z to 2026-09-10T02:16:31.680Z Record version: sha256:08d0b89864e05bd8e4e7ec91dcf338807c06b8ef6e1c6c74aed6e1478be5bd57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Financial Guarantee Insurance Contracts Subsections of this Subtopic applies only to [financial guarantee insurance contracts](https://asc.understandingaccounting.org/glossary/f/#financial-guarantee-insurance-contract "A contract issued by an insurance entity that provides protection to the holder of a financial obligation from a financial loss in the event of a default. Specifically, a contract that obligates the insurance entity to pay a claim upon the occurrence of an event of default. The event of a default (insured event) refers to nonpayment (when due) of insured contractual payments (generally principal and interest) by the issuer of the insured financial obligation.") and [financial guarantee reinsurance contracts](https://asc.understandingaccounting.org/glossary/f/#financial-guarantee-reinsurance-contract "See Financial Guarantee Insurance Contract").