{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/40/#35-subsequent-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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Claim Costs","paragraphs":[{"citation":"944-40-35-1","para":"35-1","html":"
Changes in estimates of claim costs resulting from the continuous review process and differences between estimates and payments for claims shall be recognized in income of the period in which the estimates are changed or payments are made.
","snippet":"Changes in estimates of claim costs resulting from the continuous review process and differences between estimates and payments for claims shall be recognized in income of the period in which the estimates are changed or…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c037db83c4b5cd727dee2e684cd7247417559d6aff3f7e2d9831760176033cd","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-2","para":"35-2","html":"
As discussed in paragraph 944-40-30-2, 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":"As discussed in paragraph 944-40-30-2, 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 v…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4951d46057aa43901e25af6e827948b5ceda6d8cbeb3bc7fbc2edfddcda4a72","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-3","para":"35-3","html":"
As discussed in paragraph 944-40-30-3, estimated recoveries on settled claims other than mortgage guaranty and title insurance claims also shall be deducted from the liability for unpaid claims.
","snippet":"As discussed in paragraph 944-40-30-3, 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":"sha256:74ca565179372c896012fd68be8a43b424414eea311bde0222cca29920fe66b4","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-4","para":"35-4","html":"
Subsequent reductions in the reported amount and realized gains and losses on the sale of real estate acquired in settling claims shall be recognized as an adjustment to claim costs incurred.
","snippet":"Subsequent reductions in the reported amount and realized gains and losses on the sale of real estate acquired in settling claims shall be recognized as an adjustment to claim costs incurred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b28e3c9fa71ef43d3440e367ddf0190602a87288ea02d4760c8c29f657ef3f2","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:968af441c6e8e0fe39733ccca10fb2495fe0441b975bfa00ba5b8993cb9ece90","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"block":"Long-Duration Contracts","heading":"Traditional and Limited-Payment Long-Duration Contracts","paragraphs":[{"citation":"944-40-35-5","para":"35-5","html":"
Assumptions shall be updated in subsequent accounting periods as follows to determine changes in the liability for future policy benefits:
  1. a
    Cash flow assumptions (that is, the assumptions used to derive estimated cash flows, including the mortality, morbidity, termination, and expense assumptions referenced in paragraphs
    944-40-30-11 through 30-15
    ) shall be reviewed—and if there is a change, updated—on an annual basis, at the same time every year.
    1. 1
      Cash flow assumptions shall be updated in interim reporting periods if evidence suggests that cash flow assumptions should be revised.
    2. 2
      An insurance entity may make an entity-wide election not to update the expense assumption referenced in paragraph 944-40-30-15.
  2. b
    The discount rate assumption referenced in paragraph 944-40-30-9 shall be updated for annual and interim reporting periods, as of the reporting date.
","snippet":"Assumptions shall be updated in subsequent accounting periods as follows to determine changes in the liability for future policy benefits:\n(a) Cash flow assumptions (that is, the assumptions used to derive estimated cash…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd9b2e12d49f5b4ff762a6b8ef5271df70ba7bddd46238dcd35471111afef98d","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-6","para":"35-6","html":"
Actual experience shall be recognized in the period in which that experience arises. The liability for future policy benefits shall then be updated for actual experience at least on an annual basis as described in paragraph 944-40-35-5(a) (and for limited-payment contracts, see paragraph 944-605-35-1B for guidance on updating any corresponding deferred profit liability). An insurance entity need not update the liability for future policy benefits for actual experience more often than on an annual basis, unless cash flow assumptions are updated as described in paragraph 944-40-35-5(a)(1).
","snippet":"Actual experience shall be recognized in the period in which that experience arises. The liability for future policy benefits shall then be updated for actual experience at least on an annual basis as described in paragr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e34e8ab5101c90fe155d8a53c0dad14d484920ab1e28bc5108df1825518a035","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-6A","para":"35-6A","html":"
A related charge or credit to net income (see paragraph 944-40-45-4) or other comprehensive income as a result of updating assumptions at the level of aggregation at which reserves are calculated (that is, for a group of contracts) shall be determined as follows:
  1. a
    Cash flow assumptions. Net premiums shall be updated for cash flow changes. An insurance entity shall update its estimate of cash flows expected over the entire life of a group of contracts using actual historical experience and updated future cash flow assumptions. An insurance entity shall recalculate net premiums by comparing the present value of actual historical benefits and related actual (if applicable) historical expenses plus updated remaining expected benefits and related expenses, less the liability carryover basis (if applicable), with the present value of actual historical gross premiums plus the updated remaining expected gross premiums (see Examples 6 and 7 in paragraphs
    944-40-55-29H through 55-29U
    ). The revised ratio of net premiums to gross premiums shall not exceed 100 percent (see paragraph 944-40-35-7A).
    1. 1
      Liability remeasurement gain or loss. The revised net premiums shall be used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original (that is, contract issuance) discount rate. The updated liability for future policy benefits as of the beginning of the current reporting period shall then be compared with the carrying amount of the liability as of that date (that is, before the updating of cash flow assumptions) to determine the current period change in liability estimate (that is, the liability remeasurement gain or loss) to be recognized in net income for the current reporting period (see paragraph 944-40-45-4 for presentation requirements).
    2. 2
      Current-period benefit expense. The revised net premiums shall be applied as of the beginning of the current reporting period to derive the benefit expense for the current reporting period (see paragraph 944-40-45-4 for presentation requirements).
    3. 3
      Subsequent periods. In subsequent periods, the revised net premiums shall be used to measure the liability for future policy benefits, subject to future revisions.
  2. b
    Discount rate assumptions. Net premiums shall not be updated for discount rate assumption changes.
    1. 1
      The difference between the updated carrying amount of the liability for future policy benefits (that is, the present value of future benefits and expenses less the present value of future net premiums based on updated cash flow assumptions) measured using the updated discount rate assumption and the original discount rate assumption shall be recognized directly to other comprehensive income (that is, on an immediate basis).
    2. 2
      The interest accretion rate shall remain the original discount rate used at contract issue date.
","snippet":"A related charge or credit to net income (see paragraph 944-40-45-4) or other comprehensive income as a result of updating assumptions at the level of aggregation at which reserves are calculated (that is, for a group of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e970540c698b2ba79bf2bf2e82ea1c8976f9cf70aee4cd3cb8ce404d2a7d3d21","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-7","para":"35-7","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:eb83813994f5f52d605d0f96604894eafa77aba02728e43386daf665515f2849","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-7A","para":"35-7A","html":"
If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, an insurance entity shall:
  1. a
    Set net premiums equal to gross premiums
  2. b
    Increase the liability for future policy benefits
  3. c
    Recognize a corresponding charge to net income for the current reporting period (see paragraph 944-40-45-4) such that net premiums are set equal to gross premiums.
In subsequent periods (that is, until assumptions are subsequently updated), the liability for future policy benefits shall be accrued with net premiums set equal to gross premiums.
","snippet":"If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, an insurance entity shall:\n(a) Set net premiums equal to gross p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f542230432965b4fded6fdc6ca926ef1b605989ab5e1fcf43613ece082d9ba63","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-7B","para":"35-7B","html":"
In no event shall the liability for future policy benefits balance be less than zero at the level of aggregation at which reserves are calculated.
","snippet":"In no event shall the liability for future policy benefits balance be less than zero at the level of aggregation at which reserves are calculated.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb241b9ffd633b72be1094bde4ffce5c8fe14863538bb5644b872588684f96a0","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc6c6af901719061ba68f56a07d70c2235b060acf54f06f62e4e8449e77c7098","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts and Nontraditional Contract Benefits","paragraphs":[{"citation":"944-40-35-8","para":"35-8","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:bb7f1c5082a383c353a0b67098dcd80a34dc1ab203a200ce65b1b4e340ec70e7","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-8A","para":"35-8A","html":"
A market risk benefit may be positive (that is, an asset) or negative (that is, a liability). Changes in fair value related to market risk benefits shall be recognized in net income, with the exception of fair value changes attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position. The portion of a fair value change attributable to a change in the instrument-specific credit risk of market risk benefits in a liability position shall be recognized in other comprehensive income (see paragraph 944-40-45-3).
","snippet":"A market risk benefit may be positive (that is, an asset) or negative (that is, a liability). Changes in fair value related to market risk benefits shall be recognized in net income, with the exception of fair value chan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73a81b792a8f4d17add2ef8b09ae78d33109d42790fdf26c81f0eec0edc36e12","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-8B","para":"35-8B","html":"
Upon derecognition of a market risk benefit, an insurance entity shall derecognize any related amount included in accumulated other comprehensive income. An insurance entity only shall include in net income any gain or loss that is realized as a result of the insurance entity's nonperformance (that is, the settlement or extinguishment of an obligation for an amount less than the contractual obligation amount). On the date of annuitization (for annuitization benefits) or upon extinguishment of the account balance (for withdrawal benefits) the balance related to the market risk benefit shall be derecognized, and the amount deducted (after derecognition of any related amount included in accumulated other comprehensive income) shall be used in the calculation of the liability for future policy benefits for the payout annuity (including the establishment of a deferred profit liability to the extent that the market risk benefit amount deducted exceeds the amount of the liability for future policy benefits or the recognition of an immediate loss to the extent that the amount of the liability for future policy benefits exceeds the market risk benefit amount deducted).
","snippet":"Upon derecognition of a market risk benefit, an insurance entity shall derecognize any related amount included in accumulated other comprehensive income. An insurance entity only shall include in net income any gain or l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc56292014d075412f3bbc77b082863737f00b71966c720644d8fe10e8237d5c","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-9","para":"35-9","html":"
An insurance entity shall regularly evaluate estimates used and adjust the additional liability balance, with a related charge or credit to benefit expense (see paragraph 944-40-45-1), if actual experience or other evidence suggests that earlier assumptions should be revised. In making such revised estimates, both the present value of total excess payments and the present value of total expected assessments and investment margins shall be calculated as of the balance sheet date using historical experience from the issue date to the balance sheet date and estimated experience thereafter.
","snippet":"An insurance entity shall regularly evaluate estimates used and adjust the additional liability balance, with a related charge or credit to benefit expense (see paragraph 944-40-45-1), if actual experience or other evide…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f0925c3ac48bb3dece028cb41ae6cc90ad4ae03233e66f76f5e671e14b12fc3","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-10","para":"35-10","html":"
The additional liability at the balance sheet date shall be equal to:
  1. a
    The current benefit ratio multiplied by the cumulative assessments (cumulative assessments shall be calculated as actual cumulative assessments, including investment margins, if applicable, recorded from contract inception through the balance sheet date)
  2. b
    Less the cumulative excess payments (including amounts reflected in claims payable liabilities)
  3. c
    Plus accreted interest.
However, in no event shall the additional liability balance be less than zero.
","snippet":"The additional liability at the balance sheet date shall be equal to:\n(a) The current benefit ratio multiplied by the cumulative assessments (cumulative assessments shall be calculated as actual cumulative assessments, i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ccc269c1dcbe4efed57f9585b8f131909640329b06c981470522eeeb1423144","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-11","para":"35-11","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":"sha256:860714104f88fe0ddbe0ee77682f70741a71cbb1195509834a68524b1e6e2eb8","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-12","para":"35-12","html":"
The insurance entity shall regularly evaluate estimates used and adjust the additional liability balance recognized under paragraph 944-40-25-27 with a related charge or credit to benefit expense (see paragraph 944-40-45-2), if actual experience or other evidence suggests that earlier assumptions should be revised.
","snippet":"The insurance entity shall regularly evaluate estimates used and adjust the additional liability balance recognized under paragraph 944-40-25-27 with a related charge or credit to benefit expense (see paragraph 944-40-45…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:454e5d12b78d2522fb55453ded88973b18a3bc40dd0ca7f7f62a1ddb82ba4d37","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-13","para":"35-13","html":"
In making such revised estimates, both the present value of total excess payments and the present value of total expected assessments or investment margins shall be calculated as of the balance sheet date using historical experience from the issue date to the balance sheet date and estimated experience thereafter.
","snippet":"In making such revised estimates, both the present value of total excess payments and the present value of total expected assessments or investment margins shall be calculated as of the balance sheet date using historica…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7615171df1044a3464d9673c6a575f8f6d42baa10f9cd08b92ff69859d507c58","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-14","para":"35-14","html":"
The additional liability at the balance sheet date shall be equal to the sum of the following:
  1. a
    The current benefit ratio multiplied by the cumulative assessments
  2. b
    Accreted interest (an addition)
  3. c
    At time of annuitization, the cumulative excess payments determined at annuitization (a deduction).
However, in no event shall the additional liability balance be less than zero.
","snippet":"The additional liability at the balance sheet date shall be equal to the sum of the following:\n(a) The current benefit ratio multiplied by the cumulative assessments\n(b) Accreted interest (an addition)\n(c) At time of ann…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60e37f240b47ffec79eca2f2abfcdfea6913a02df23dcf6eba5a2eb18f18fab2","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-15","para":"35-15","html":"
The cumulative excess payments determined at annuitization in paragraph 944-40-35-14(c) is the amount that shall be deducted at the actual date of annuitization. That amount shall be calculated as the present value of expected annuity payments and related claim adjustment expenses discounted at an upper-medium grade (low-credit-risk) fixed-income instrument yield minus the accrued account balance at the actual annuitization date.
","snippet":"The cumulative excess payments determined at annuitization in paragraph 944-40-35-14(c) is the amount that shall be deducted at the actual date of annuitization. That amount shall be calculated as the present value of ex…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0916bee403424228aa76a20eb3773473c0f9353b8112fa945c7c465bfcb98e42","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-16","para":"35-16","html":"
On the date of annuitization or extinguishment of the account balance, the additional liability related to the cumulative excess benefits will be derecognized and the amount deducted will be used in the calculation of the liability for the payout annuity.
","snippet":"On the date of annuitization or extinguishment of the account balance, the additional liability related to the cumulative excess benefits will be derecognized and the amount deducted will be used in the calculation of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e27ffce8a9625f896427f5ad5e37e4fa1032e64097ea0f3a75c5298f38ac453b","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-17","para":"35-17","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.
","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:ba828271caaa3f0b2bbc9a95b723c559e7645484668c678efcdc8b85f380cfa4","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-18","para":"35-18","html":"
That liability shall be calculated using the methodology described in paragraphs
944-40-35-8A through 35-10
and
944-40-35-12 through 35-16
.
","snippet":"That liability shall be calculated using the methodology described in paragraphs 944-40-35-8A through 35-10 and 944-40-35-12 through 35-16.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9931fda9da0ec25dbd5dede4009a504399e4886d168db8570449d22d6288f7bb","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-19","para":"35-19","html":"
The accrued account balance for a two-tier annuity during the accumulation phase shall be calculated using the lower-tier rate because the account balance accumulated at the lower tier is the amount that would be available in cash at maturity if the contract holder elects not to annuitize the contract.
","snippet":"The accrued account balance for a two-tier annuity during the accumulation phase shall be calculated using the lower-tier rate because the account balance accumulated at the lower tier is the amount that would be availab…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:295a8441cc011e8be7641aaf638741c71582930815c02212e53ba40267261b2a","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-20","para":"35-20","html":"
An additional liability recognized in accordance with paragraphs
944-40-25-26 through 25-27
or a market risk benefit, as applicable, shall be recognized during the accumulation phase for the annuitization benefit in excess of the accrued account balance.
","snippet":"An additional liability recognized in accordance with paragraphs 944-40-25-26 through 25-27or a market risk benefit, as applicable, shall be recognized during the accumulation phase for the annuitization benefit in exces…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b78e832ccdcd1aef3899eaf3e1b47087b5f8d66c4831aef753180f2471d580b","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-21","para":"35-21","html":"
If there is an additional liability for the annuitization benefit and a contract holder elects to annuitize, the present value of annuitization payments, including related incremental claims adjustment expenses, discounted using an upper-medium grade (low-credit-risk) fixed-income instrument yield would represent the single premium used to purchase the annuitization benefit.
","snippet":"If there is an additional liability for the annuitization benefit and a contract holder elects to annuitize, the present value of annuitization payments, including related incremental claims adjustment expenses, discount…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:458a8c7cc1020bff07e2cdaea74d1a2daf3cd0b1765af0bfef82edf1c4651a7b","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1cc0ac0d660edf4559f3458b09f619a1ec0e4571e2eb1b8920bb624c024c5aea","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"block":"Long-Duration Contracts","heading":"Certain Participating Life Insurance Contracts","paragraphs":[{"citation":"944-40-35-22","para":"35-22","html":"
Terminal dividends accrued under paragraph 944-40-25-30 shall be recognized as an expense over the life of a book of participating life insurance contracts, at a constant rate based on the present value of the base used for the amortization of deferred acquisition costs.
","snippet":"Terminal dividends accrued under paragraph 944-40-25-30 shall be recognized as an expense over the life of a book of participating life insurance contracts, at a constant rate based on the present value of the base used …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8feabff9d90faa91d549e165284b5975b2fdada7cff8dc0fb39036ac419133fd","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-23","para":"35-23","html":"
The present value of the amortization base shall be computed using the expected investment yield (net of related investment expenses). Accordingly, interest shall accrue on the balance of terminal dividends.
","snippet":"The present value of the amortization base shall be computed using the expected investment yield (net of related investment expenses). Accordingly, interest shall accrue on the balance of terminal dividends.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:191477e89198d80ce70d60cad927dce6554249ed7ab6aee03adb34a3cad6d9c0","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-24","para":"35-24","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":"sha256:94ea97e8447fa2e83a3a07c5de5f5407493d81757f36d56d0ebbde7314a8f7c2","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-25","para":"35-25","html":"
Increases in the liability for future policy benefits shall be reported as an expense in the statement of earnings.
","snippet":"Increases in the liability for future policy benefits shall be reported as an expense in the statement of earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bf473fa4ed8f987076673a353083b86e30164e646ec084edfff1c8eb854fb181","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:189d0f5bd93ed6eda5b9669dac1e864bdd9d7b5eb37f5c804b7f60aea209c507","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-35-26","para":"35-26","html":"
An insurance entity shall update the discount rate on a claim liability recognized under 944-40-25-42 each reporting period. An insurance entity also shall revise expected net cash outflows when increases (or decreases) in the likelihood of a default (insured event) (and related amounts of net cash outflows) and potential recoveries occur. The claim liability shall not be reduced below zero. The discount amount shall be accreted on the claim liability through earnings.
","snippet":"An insurance entity shall update the discount rate on a claim liability recognized under 944-40-25-42 each reporting period. An insurance entity also shall revise expected net cash outflows when increases (or decreases) …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:270d0eb2017e22ecb410c219f8a98a43ace2b97a45a21eb286fed2331dced985","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-27","para":"35-27","html":"
Revisions to the claim liability shall be recognized as claim expense in the period of the change as a change in accounting estimate.
","snippet":"Revisions to the claim liability shall be recognized as claim expense in the period of the change as a change in accounting estimate.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c5abef2f2a0f2988568832dce0e27301a6db231d28604717c3a78b8a68278bf","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},{"citation":"944-40-35-28","para":"35-28","html":"
Paragraph 944-605-25-25 states that the unearned premium revenue represents the insurance entity's stand-ready obligation under a financial guarantee insurance contract at initial recognition. If the likelihood of a default (insured event) increases so that the present value of the expected net cash outflows expected to be paid under the insurance contract exceeds the unearned premium revenue, the insurance entity shall recognize a claim liability (in addition to the unearned premium revenue) in accordance with paragraph 944-40-25-42.
","snippet":"Paragraph 944-605-25-25 states that the unearned premium revenue represents the insurance entity's stand-ready obligation under a financial guarantee insurance contract at initial recognition. If the likelihood of a defa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c3dc5e8e9805fa2e32f557e1965c45fbea106a7869469c6872f92d2e64d8b67","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b1e7b20ea9b8f4a112da955d7baf60e5e0555612f6040213b717fc1d1f428bf","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:367d0f4ba5ea6772bc4fc4c7990093d89b1c822e4a837d207e1fda4c39504ac8","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:367d0f4ba5ea6772bc4fc4c7990093d89b1c822e4a837d207e1fda4c39504ac8","downloaded_from":"2026-09-10T02:16:42.663Z","last_downloaded_at":"2026-09-10T02:16:42.663Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480143","source_sha256":"67772828c8b76a3edb892af7a6598150fc3506b72db1aac6e6ed63cb83c52f30"}}