{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/40/#30-initial-measurement","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"944","topic_title":"Financial Services—Insurance","subtopic":"944-40","subtopic_title":"Claim Costs and Liabilities for Future Policy Benefits","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Liability for Unpaid Claims","paragraphs":[{"citation":"944-40-30-1","para":"30-1","html":"
The liability for unpaid claims shall be based on the estimated ultimate cost of settling the claims (including the effects of inflation and other societal and economic factors), using past experience adjusted for current trends, and any other factors that would modify past experience.
","snippet":"The liability for unpaid claims shall be based on the estimated ultimate cost of settling the claims (including the effects of inflation and other societal and economic factors), using past experience adjusted for curren…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:717dadc48cb88a23d4190f69030af06700547ba9a9a37de2e61cddba55fcd330","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-2","para":"30-2","html":"
Estimated recoveries on unsettled claims, such as salvage, subrogation, or a potential ownership interest in real estate, shall be evaluated in terms of their estimated realizable value and deducted from the liability for unpaid claims.
","snippet":"Estimated recoveries on unsettled claims, such as salvage, subrogation, or a potential ownership interest in real estate, shall be evaluated in terms of their estimated realizable value and deducted from the liability fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:16f49f7831cee74e3b8e4a84219b32970eb080db7a6462c4f83325c5a8589c59","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-3","para":"30-3","html":"
Estimated recoveries on settled claims other than mortgage guaranty and title insurance claims also shall be deducted from the liability for unpaid claims.
","snippet":"Estimated recoveries on settled claims other than mortgage guaranty and title insurance claims also shall be deducted from the liability for unpaid claims.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48addcc84548cacc821e69a345152d3a61471a69945bd81970498c954d049986","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-4","para":"30-4","html":"
Claim adjustment expenses include costs associated directly with specific claims paid or in the process of settlement, such as legal and adjusters' fees. Claim adjustment expenses also include other costs that cannot be associated with specific claims but are related to claims paid or in the process of settlement, such as internal costs of the claims function.
","snippet":"Claim adjustment expenses include costs associated directly with specific claims paid or in the process of settlement, such as legal and adjusters' fees. Claim adjustment expenses also include other costs that cannot be …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aaeca60c2ac5b172ee092c0bf49a3246542db01877777b2854cce41e61605745","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-5","para":"30-5","html":"
The initial measurement attributes of items recognized under the General Subsection of Section 944-40-25 are the same as stated for subsequent measurement, see the General Subsection of Section 944-40-35.
","snippet":"The initial measurement attributes of items recognized under the General Subsection of Section 944-40-25 are the same as stated for subsequent measurement, see the General Subsection of Section 944-40-35.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2806b80139ce0b5052215d3397f9271f017c26c44aa78e599c7849100d69910a","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:495aeb2dafc0e0bfefef329d966da5c7acbe65c54997675fdff4dd48075dd8d5","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"block":"Long-Duration Contracts","heading":"Overall","paragraphs":[{"citation":"944-40-30-6","para":"30-6","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":"sha256:09d0a99c6eb0b2bfb03c0cbdf784f14e1db0b11e8faf36c4193134d8c320d1db","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15ae68fdfc36800ec0c9e63e4f9931c7fd5addbfa92ac113cdd3388061754cb6","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"block":"Long-Duration Contracts","heading":"Traditional and Limited-Payment Long-Duration Contracts","paragraphs":[{"citation":"944-40-30-7","para":"30-7","html":"
The liability for future policy benefits accrued under paragraph 944-40-25-8 shall be the present value of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums (portion of gross premium required to provide for all benefits and expenses, excluding acquisition costs or costs that are required to be charged to expense as incurred). That liability shall be estimated using methods that include assumptions, such as discount rate, mortality, morbidity, terminations, and expenses (see paragraphs 944-40-30-9 and
944-40-30-11 through 30-15
). The liability also shall consider other assumptions relating to guaranteed contract benefits, such as coupons, annual endowments, and conversion privileges. The assumptions shall not include a provision for the risk of adverse deviation. In determining the level of aggregation at which reserves are calculated, an insurance entity shall not group contracts together from different issue years but shall group contracts into quarterly or annual groups.
","snippet":"The liability for future policy benefits accrued under paragraph 944-40-25-8 shall be the present value of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3669e8b67ddbff67e6857d219bbdfbc4bd51bfd22e5a5e326893287a1a5435d","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-7A","para":"30-7A","html":"
To the extent the present value of future benefits and expenses exceeds the present value of future gross premiums, an immediate charge shall be recognized in net income (see paragraph 944-40-45-4) such that net premiums are set equal to gross premiums. In no event shall the liability for future policy benefits balance be less than zero for the level of aggregation at which reserves are calculated. Assumptions shall be updated in subsequent accounting periods as described in paragraphs 944-40-35-5 through 35-6A and
944-40-35-7A through 35-7B
.
","snippet":"To the extent the present value of future benefits and expenses exceeds the present value of future gross premiums, an immediate charge shall be recognized in net income (see paragraph 944-40-45-4) such that net premiums…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02eed694d2720e8cb19bf1c73ec29aae4eeb1ea844b267b1fe3833022a79dcdd","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-8","para":"30-8","html":"
This guidance discusses the following assumptions:
  1. a
    Discount rate
  2. b
    Mortality
  3. c
    Morbidity
  4. d
    Termination
  5. e
    Expense.
","snippet":"This guidance discusses the following assumptions:\n(a) Discount rate\n(b) Mortality\n(c) Morbidity\n(d) Termination\n(e) Expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:251fdbee0100cb799996c45a255c210672b4737d8c936369e4c4623a54a3f66e","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-9","para":"30-9","html":"
The liability for future policy benefits shall be discounted using an upper-medium grade (low-credit-risk) fixed-income instrument yield. An insurance entity shall consider reliable information in estimating the upper-medium grade (low-credit-risk) fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits (see paragraph 944-40-55-13E). An insurance entity shall maximize the use of relevant observable inputs and minimize the use of unobservable inputs in determining the discount rate assumption.
","snippet":"The liability for future policy benefits shall be discounted using an upper-medium grade (low-credit-risk) fixed-income instrument yield. An insurance entity shall consider reliable information in estimating the upper-me…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9fee33e759911853c1f1903f7f78125de67591f2e59d743c39cd1382aadc81ab","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-10","para":"30-10","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":"sha256:9de8ceb64a2184cdb0f349077ea045f05fcf6c3a26ba259d49e4354df23740f3","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-11","para":"30-11","html":"
Mortality assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected mortality.
","snippet":"Mortality assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected mortality.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a160b53846d004f3cbd1cf5dbbc5dd1d204d81c36f82a077e1416c70f0879aa6","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-12","para":"30-12","html":"
Morbidity assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected incidences of disability and claim costs.
","snippet":"Morbidity assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected incidences of disability and claim costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:531f738d9563e5fecbbdb1c671565faeabf10b2c003729a3b5dca4efbcb45aac","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-13","para":"30-13","html":"
Expected incidences of disability and claim costs for various types of insurance (for example, noncancelable and guaranteed renewable accident and health insurance contracts) and other factors, such as occupational class, waiting period, sex, age, and benefit period, shall be considered in making morbidity assumptions. The risk of antiselection or adverse selection also shall be considered in making morbidity assumptions.
","snippet":"Expected incidences of disability and claim costs for various types of insurance (for example, noncancelable and guaranteed renewable accident and health insurance contracts) and other factors, such as occupational class…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cecd7af859cb17f6c3b43d2a269d8c172949a3e2677778430c3c20ba4a27cd61","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-14","para":"30-14","html":"
Termination assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected terminations and nonforfeiture benefits, using expected termination rates and contractual nonforfeiture benefits. Termination rates may vary by plan of insurance, age at issue, year of issue, frequency of premium payment, and other factors. If composite rates are used, the rates shall be representative of the entity's actual mix of business. Termination assumptions shall be made for long-duration insurance contracts without termination benefits because of the effects of terminations on expected premiums and claim costs.
","snippet":"Termination assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected terminations and nonforfeiture benefits, using expected termination rates and contractual nonfor…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9772b24228339980254c2a0021ea163f2bb7560c7aa6992b6a316abd18949d39","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-15","para":"30-15","html":"
Expense assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected nonlevel costs, such as termination or settlement costs, and costs after the premium-paying period. Renewal expense assumptions shall consider the possible effect of inflation on those expenses. However, expense assumptions shall not include acquisition costs or any costs that are required to be charged to expense as incurred, such as those relating to investments, general administration, policy maintenance costs, product development, market research, and general overhead (see paragraph 944-720-25-2).
","snippet":"Expense assumptions used in estimating the liability for future policy benefits shall be based on estimates of expected nonlevel costs, such as termination or settlement costs, and costs after the premium-paying period. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be810971fccbfaa5b1c146971aa4f706b7bf85370a8c635d801e24e824677211","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3985ddbd59e34069ed0a20cb971e65fcdc0ec6f70b875e44581cce47eac188b","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts and Nontraditional Contract Benefits","paragraphs":[{"citation":"944-40-30-16","para":"30-16","html":"
The liability for policy benefits for universal life-type contracts shall be equal to the sum of the following:
  1. a
    The balance that accrues to the benefit of policyholders at the date of the financial statements
  2. b
    Any amounts that have been assessed to compensate the insurance entity for services to be performed over future periods (see Subtopic 944-605 on insurance—revenue recognition)
  3. c
    Any amounts previously assessed against policyholders that are refundable on termination of the contract
  4. d
    Any probable loss (premium deficiency) as described in paragraphs
    944-60-25-7 through 25-9
    .
","snippet":"The liability for policy benefits for universal life-type contracts shall be equal to the sum of the following:\n(a) The balance that accrues to the benefit of policyholders at the date of the financial statements\n(b) Any…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06f15261af694299a2cdfd4d4e0897adfd126d6e39b21168fdb49a4b6d4eba53","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-17","para":"30-17","html":"
Amounts that may be assessed against policyholders in future periods, including surrender charges, shall not be anticipated in determining the liability for policy benefits.
","snippet":"Amounts that may be assessed against policyholders in future periods, including surrender charges, shall not be anticipated in determining the liability for policy benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a83e2896037828926cf8a94873a2ce74295c10cb55e2fdca07c34a38a9dfed1","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-18","para":"30-18","html":"
In the absence of a stated account balance or similar explicit or implicit contract value, the cash value, measured at the date of the financial statements, that could be realized by a policyholder upon surrender shall represent the element of liability described in paragraph 944-40-30-16(a).
","snippet":"In the absence of a stated account balance or similar explicit or implicit contract value, the cash value, measured at the date of the financial statements, that could be realized by a policyholder upon surrender shall r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07cf4fc24b30747cf94d06532a88ce2a49c41249fdbb916b9e81767160c7342c","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-19","para":"30-19","html":"
Provisions for risk of adverse deviation shall not be made.
","snippet":"Provisions for risk of adverse deviation shall not be made.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5636a0ff29d7875291fc0d790e8211fe50a8ada7ad52570277c3b6196a54640a","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-19A","para":"30-19A","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":"sha256:95c684d0b911ee5af36f347fec9ab4941e1060aff9a226e74e440c62b54c253a","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-19B","para":"30-19B","html":"
The guidance in paragraphs
944-40-30-19C through 30-24
and 944-40-30-26 through 30-29A addresses contracts or contract features that provide for potential benefits in addition to the account balance that accrues to the benefit of the policyholders.
","snippet":"The guidance in paragraphs 944-40-30-19C through 30-24 and 944-40-30-26 through 30-29A addresses contracts or contract features that provide for potential benefits in addition to the account balance that accrues to the b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1d6b08cc97944e5d2ceed8ad960443d79a30aabd42b8a30f9a1f2e5ff3a03e5","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-19C","para":"30-19C","html":"
A market risk benefit shall be measured at fair value. Total attributed fees used to calculate the fair value of the market risk benefit shall not be negative or exceed total contract fees and assessments collectible from the contract holder.
","snippet":"A market risk benefit shall be measured at fair value. Total attributed fees used to calculate the fair value of the market risk benefit shall not be negative or exceed total contract fees and assessments collectible fro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0537cb27131f36faee2d2fa913209f036c60a01c10aef04bc90b43d6105c286e","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-19D","para":"30-19D","html":"
In determining the terms of the market risk benefit, the insurance entity shall consider guidance on determining the terms of an embedded derivative that is required to be accounted for separately under Subtopic 815-15 on embedded derivatives, including the following:
  1. a
    Consistent with paragraph 815-15-30-4, if a nonoption valuation approach is used, the terms of the market risk benefit shall be determined in a manner that results in its fair value generally being equal to zero at the inception of the contract.
  2. b
    Consistent with paragraph 815-15-30-6, if an option-based valuation approach is used, the terms of the market risk benefit shall not be adjusted to result in the market risk benefit being equal to zero at the inception of the contract.
  3. c
    Consistent with paragraph 815-15-25-7, if a contract contains multiple market risk benefits, those market risk benefits shall be bundled together as a single compound market risk benefit.
","snippet":"In determining the terms of the market risk benefit, the insurance entity shall consider guidance on determining the terms of an embedded derivative that is required to be accounted for separately under Subtopic 815-15 o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21647c2a04e518580c0b165bb3e853a77ce1891c5aee205c40108fa764218c7d","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-20","para":"30-20","html":"
The amount of the additional liability recognized under paragraph 944-40-25-27A shall be determined based on the ratio (benefit ratio) of the following:
  1. a
    Numerator. The present value of total expected excess payments over the life of the contract, discounted at the contract rate.
  2. b
    Denominator. The present value of total expected assessments over the life of the contract, discounted at the contract rate.
Total expected assessments are the aggregate of all charges, including those for administration, mortality, expense, and surrender, regardless of how characterized. The contract rate used to compute present value shall be either the rate in effect at the inception of the book of contracts or the latest revised rate applied to the remaining benefit period. The approach selected to compute the present value of revised estimates shall be applied consistently in subsequent revisions to computations of the benefit ratio.
","snippet":"The amount of the additional liability recognized under paragraph 944-40-25-27A shall be determined based on the ratio (benefit ratio) of the following:\n(a) Numerator. The present value of total expected excess payments …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5d2c4931b3465bfba5f3e17beea1e317a8e2812f85c541242ddac6eae14d3f95","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-21","para":"30-21","html":"
The benefit ratio as determined in paragraph 944-40-30-20 may exceed 100 percent, resulting in a liability that exceeds cumulative assessments.
","snippet":"The benefit ratio as determined in paragraph 944-40-30-20 may exceed 100 percent, resulting in a liability that exceeds cumulative assessments.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc7b952d0677c81a6d855485103f516a739f6c7e85ff92010843e2345bbe3158","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-22","para":"30-22","html":"
For contracts in which the assets are reported in the general account, the investment margin (that is, the amounts expected to be earned from the investment of policyholder balances less amounts credited to policyholder balances [see paragraph 944-40-25-14]) shall be included with any other assessments for purposes of determining total expected assessments that are referenced in paragraph 944-40-30-20.
","snippet":"For contracts in which the assets are reported in the general account, the investment margin (that is, the amounts expected to be earned from the investment of policyholder balances less amounts credited to policyholder …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53aaabfaddbf0c5846418478f956c6951b126b2e13d1aa6ccb0b4d9b63fc60b8","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-22A","para":"30-22A","html":"
An increase during a period in an unearned revenue liability (that is, deferral of revenue) established in paragraphs
944-605-25-6 through 25-7
shall be excluded from the amounts assessed against the contract holder's account balance for that period and a decrease in (that is, amortization of) an unearned revenue liability in accordance with paragraph 944-605-35-2 during a period shall be included with the assessments for that period.
","snippet":"An increase during a period in an unearned revenue liability (that is, deferral of revenue) established in paragraphs 944-605-25-6 through 25-7 shall be excluded from the amounts assessed against the contract holder's ac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c40447b41ba37de2e67de9549cde3262cff75b4fd7e3485b83dd0c067c0fdc23","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-23","para":"30-23","html":"
The insurance entity shall calculate the present value of total expected excess payments and total assessments and investment margins, as applicable, based on expected experience.
","snippet":"The insurance entity shall calculate the present value of total expected excess payments and total assessments and investment margins, as applicable, based on expected experience.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:078adf7d3a9213f1a890f25f30922637ab5356bb0b3a6dc170970ee9bc30ad10","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-24","para":"30-24","html":"
Expected experience shall be based on a range of scenarios that considers the volatility inherent in the assumptions rather than a single set of best estimate assumptions.
","snippet":"Expected experience shall be based on a range of scenarios that considers the volatility inherent in the assumptions rather than a single set of best estimate assumptions.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a9904786f0fb84bb31ad835fad8b44b915708c7ae675a41f260e5b39b7e7c7b","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-25","para":"30-25","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:b98e57a0f4dc1eeda07a5ff00cf3e6a17c5d4ce0d022dda664e15636df815c03","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-26","para":"30-26","html":"
The additional liability required under paragraph 944-40-25-27 shall be measured initially based on the benefit ratio determined by the following numerator and denominator:
  1. a
    Numerator. The present value of expected annuitization payments to be made and related incremental claim adjustment expenses, discounted at an upper-medium grade (low-credit-risk) fixed-income instrument yield applicable to the payout phase of the contract, minus the expected accrued account balance at the expected annuitization date (the excess payments). The excess of the present value payments to be made during the payout phase of the contract over the expected accrued account balance at the expected annuitization date shall be discounted at the contract rate.
  2. b
    Denominator. The present value of total expected assessments during the accumulation phase of the contract, discounted at the contract rate.
Total expected assessments are the aggregate of all charges, including those for administration, mortality, expense, and surrender, regardless of how characterized.
","snippet":"The additional liability required under paragraph 944-40-25-27 shall be measured initially based on the benefit ratio determined by the following numerator and denominator:\n(a) Numerator. The present value of expected an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ae338384f37baf21679f2dc2dc07fefa38d49d37a3d19188d8d9547ccded20d","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-27","para":"30-27","html":"
For contracts whose assets are reported in the general account, the investment margin (that is, the amounts expected to be earned from the investment of policyholder balances less amounts credited to policyholder balances [see paragraph 944-40-25-14]) shall be included with any other assessments for purposes of determining total expected assessments that are referenced in paragraph 944-40-30-26.
","snippet":"For contracts whose assets are reported in the general account, the investment margin (that is, the amounts expected to be earned from the investment of policyholder balances less amounts credited to policyholder balance…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50e045faa3d702940f7526e9da300a013f613fa8fba30882fc5fe517b120503f","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-28","para":"30-28","html":"
The insurance entity shall calculate the present value of total expected excess payments and total assessments and investment margins, as applicable, based on expected experience. Expected experience shall be based on a range of scenarios that considers the volatility inherent in the assumptions rather than a single set of best estimate assumptions. When determining expected excess payments, the expected annuitization rate is one of the assumptions that needs to be estimated.
","snippet":"The insurance entity shall calculate the present value of total expected excess payments and total assessments and investment margins, as applicable, based on expected experience. Expected experience shall be based on a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:944eef4efc9f7b8dcb3d363b41c4f6b5621b4b5cd6906f638cf9def7667c7b23","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-29","para":"30-29","html":"
In calculating the additional liability for the additional benefit feature, the contract rate used to compute present value shall be either the rate in effect at the inception of the book of contracts or the latest revised rate applied to the remaining benefit period. The approach selected to compute the present value of revised estimates shall be applied consistently in subsequent revisions to computations of the benefit ratio.
","snippet":"In calculating the additional liability for the additional benefit feature, the contract rate used to compute present value shall be either the rate in effect at the inception of the book of contracts or the latest revis…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3dd8e22cba60e1633cae08d7d3bc4d088ae8c1318eb917e4c0302c3bbde0d56","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-29A","para":"30-29A","html":"
A reinsurer or issuer of the insurance benefit features of a contract shall calculate a liability for the portion of premiums collected each period that represents compensation to the insurance entity for benefits that are assessed in a manner that is expected to result in current profits and future losses from the insurance benefit function. That liability shall be calculated using the methodology described in paragraphs
944-40-30-19B through 30-24
and
944-40-30-26 through 30-29
.
","snippet":"A reinsurer or issuer of the insurance benefit features of a contract shall calculate a liability for the portion of premiums collected each period that represents compensation to the insurance entity for benefits that a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78b2800dc166b3287b319d7e3ccdeffd3b7d7d5d23e73b5fbac6b038aae49313","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0e7a3d865a05781b177f8fe1358fd90086465fb1583896a5c28c75908e2044c","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"block":"Long-Duration Contracts","heading":"Certain Participating Life Insurance Contracts—Net Level Premium Reserve","paragraphs":[{"citation":"944-40-30-30","para":"30-30","html":"
The net level premium reserve shall be calculated based on the dividend fund interest rate, if determinable, and mortality rates guaranteed in calculating the cash surrender values described in the contract. If the dividend fund interest rate is not determinable, the guaranteed interest rate used in calculating cash surrender values described in the contract shall be used. If the dividend fund interest rate is not determinable and there is no guaranteed interest rate, the interest rate used in determining guaranteed nonforfeiture values shall be used. Finally, if none of the above rates exists, then the interest rate used to determine minimum cash surrender values—as set by the National Association of Insurance Commissioners' model standard nonforfeiture law—for the year of issue of the contract should be used. Regardless of the rate used, net premiums shall be calculated as a constant percentage of the gross premiums.
","snippet":"The net level premium reserve shall be calculated based on the dividend fund interest rate, if determinable, and mortality rates guaranteed in calculating the cash surrender values described in the contract. If the divid…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9fcfacd240e0bf05d27c784dc41b99b3ffd877ac1a508df68b87dbaef4093da","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e992d3e1903bab4ee675e4d3a091d565b36419e6daecd6199a4fda7bed4cbfd","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-30-31","para":"30-31","html":"
An insurance entity shall measure a claim liability equal to the present value of expected net cash outflows to be paid under the insurance contract discounted using a current risk-free rate. That current risk-free rate shall be based on the remaining period (contract or expected, as applicable) of the insurance contract.
","snippet":"An insurance entity shall measure a claim liability equal to the present value of expected net cash outflows to be paid under the insurance contract discounted using a current risk-free rate. That current risk-free rate …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36637e7415cdf762310efbb414b4c585832955fd0972bdf3771eb5632a42ed1c","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:018f863f105cbe18606ccf7a7621bbd15a5a64cd9fab381eaa01cee0ad5b1c87","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Expected Net Cash Outflows","paragraphs":[{"citation":"944-40-30-32","para":"30-32","html":"
Expected net cash outflows (cash outflows, net of potential recoveries, expected to be paid to the holder of the insured financial obligation, excluding reinsurance) are probability-weighted cash flows that reflect the likelihood of all possible outcomes. For purposes of this Subtopic, the expected net cash outflows shall be developed using the insurance entity's own assumptions about the likelihood of all possible outcomes based on all information available to the insurance entity (including relevant market information). Those assumptions shall consider all relevant facts and circumstances and, where applicable, be consistent with the information tracked and monitored through the insurance entity's risk-management activities and used to assist in making operational decisions.
","snippet":"Expected net cash outflows (cash outflows, net of potential recoveries, expected to be paid to the holder of the insured financial obligation, excluding reinsurance) are probability-weighted cash flows that reflect the l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4a64018405deec63c9e99dfd1c65cb855a88c8b38b54915494c11d814431ed3","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},{"citation":"944-40-30-33","para":"30-33","html":"
At initial recognition of a claim liability, an insurance entity shall discount the expected net cash outflows under the insurance contract using the current risk-free rate at that date based on the remaining period (contract or expected, as applicable) of the insurance contract. Example 1 (see paragraph 944-40-55-30) illustrates the application of this guidance.
","snippet":"At initial recognition of a claim liability, an insurance entity shall discount the expected net cash outflows under the insurance contract using the current risk-free rate at that date based on the remaining period (con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dbfeae528a2b6e250f0131ac724fe0293c2a6de2e0fcf5f883da79a7547fb8ee","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07066ba734afe985c2a9544a3dd1ca6e321ac957830941da8b597218b53a71b1","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba4814551405c67671930e30f6a2977ef51dd3e2e3723cedc89ceb24b303a110","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba4814551405c67671930e30f6a2977ef51dd3e2e3723cedc89ceb24b303a110","downloaded_from":"2026-09-10T02:16:39.886Z","last_downloaded_at":"2026-09-10T02:16:39.886Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479224","source_sha256":"4de8821f28855f060563669a8acb58128a993e30f71716700964056127ff7864"}}