{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/40/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"944-40","topic":"944","title":"Claim Costs and Liabilities for Future Policy Benefits","area":"Industry","paragraphs":242,"summary":"ASC 944-40 governs how insurance entities recognize and measure claim costs and liabilities for future policy benefits, with separate subsections for short-duration contracts, long-duration contracts, reinsurance contracts, and financial guarantee insurance contracts. Its core rules are that liabilities for unpaid claims (including IBNR) and claim adjustment expenses are accrued when insured events occur, and that a liability for future policy benefits—the present value of future benefits and related expenses less the present value of future net premiums—is accrued when premium revenue is recognized. Post-ASU 2018-12, cash flow assumptions are updated at least annually with remeasurement gains/losses in net income, the discount rate is an upper-medium grade (low-credit-risk) fixed-income yield updated each reporting date through OCI, and market risk benefits are measured at fair value.","concepts":["liability for unpaid claims","claim adjustment expenses","incurred but not reported claims","liability for future policy benefits","market risk benefit","accrued account balance","benefit ratio","claims development disclosure"],"categories":["Recognition","Subsequent measurement","Disclosure","Industry-specific"],"level":"advanced","topic_title":"Financial Services—Insurance","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-40-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Accident YearAddedAccounting Standards Update No. 2015-0905/21/2015
Acquisition CostsAmendedAccounting Standards Update No. 2010-2610/13/2010
AnnuitizationAddedAccounting Standards Update No. 2018-1208/15/2018
Annuitization PhaseSupersededAccounting Standards Update No. 2014-0603/14/2014
Block of New Insurance ContractsSupersededAccounting Standards Update No. 2018-1208/15/2018
Cash Surrender ValueAddedAccounting Standards Update No. 2018-1208/15/2018
Contract RateAddedAccounting Standards Update No. 2018-1208/15/2018
Enhanced-Crediting-Rate BonusAddedAccounting Standards Update No. 2014-0603/14/2014
Enhanced-Yield BonusSupersededAccounting Standards Update No. 2014-0603/14/2014
Guaranteed Minimum Accumulation BenefitAddedAccounting Standards Update No. 2018-1208/15/2018
Guaranteed Minimum Income BenefitAddedAccounting Standards Update No. 2018-1208/15/2018
Guaranteed Minimum Withdrawal BenefitAddedAccounting Standards Update No. 2018-1208/15/2018
Health Insurance ClaimsAddedAccounting Standards Update No. 2015-0905/21/2015
Involuntary TerminationSupersededAccounting Standards Update No. 2014-0603/14/2014
Lock-In ConceptSupersededAccounting Standards Update No. 2018-1208/15/2018
Maintenance CostsAddedAccounting Standards Update No. 2018-1208/15/2018
Market Risk BenefitAddedAccounting Standards Update No. 2018-1208/15/2018
Minimum Guaranteed Death BenefitSupersededAccounting Standards Update No. 2018-1208/15/2018
Net Amount at Risk (Relating to Variable Annuity Contracts)AddedAccounting Standards Update No. 2018-1208/15/2018
Net PremiumsAmendedAccounting Standards Update No. 2018-1208/15/2018
Payout PhaseAmendedAccounting Standards Update No. 2014-0603/14/2014
Policy Account BalanceAddedAccounting Standards Update No. 2018-1208/15/2018
Public Business EntityAmendedMaintenance Update 2017-06 (PDF)04/07/2017
Public Business EntityAmendedMaintenance Update 2016-11 (PDF)06/27/2016
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2015-1006/12/2015
Readily Determinable Fair ValueAmendedAccounting Standards Update No. 2014-0603/14/2014
Reinsurance RecoverableAddedAccounting Standards Update No. 2016-1912/14/2016
Risk of Adverse DeviationAmendedAccounting Standards Update No. 2018-1208/15/2018
Sales InducementsAmendedAccounting Standards Update No. 2014-0603/14/2014
Securities and Exchange Commission (SEC) FilerAddedAccounting Standards Update No. 2019-0911/15/2019
TerminationAmendedAccounting Standards Update No. 2014-0603/14/2014
Voluntary TerminationSupersededAccounting Standards Update No. 2014-0603/14/2014
944-40-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-15-6AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-11AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-13AmendedAccounting Standards Update No. 2012-0410/01/2012
944-40-25-25AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-25ASupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-25-25AAddedAccounting Standards Update No. 2012-0410/01/2012
944-40-25-25B through 25-25D
AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-26AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-27AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-27AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-28SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-25-34AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-25-40AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-25-41AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-6SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-30-7AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-7AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-8AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-9AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-10SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-30-13 through 30-16
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-19AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-19ASupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-30-19AAddedAccounting Standards Update No. 2012-0410/01/2012
944-40-30-19B through 30-19D
AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-20AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-20AmendedAccounting Standards Update No. 2012-0410/01/2012
944-40-30-22AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-22AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-24AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-25SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-30-26AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-26AmendedAccounting Standards Update No. 2014-0603/14/2014
944-40-30-27AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-29AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-29AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-30AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-30-32AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-35-5AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-6AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-6AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-7SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-35-7AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-7BAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-8SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-35-8AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-8BAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-9AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-11SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-35-12AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-15 through 35-18
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-20 through 35-23
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-35-24SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-45-1AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-45-2AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-45-3AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-45-4AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-50-1AmendedAccounting Standards Update No. 2015-0905/21/2015
944-40-50-2SupersededAccounting Standards Update No. 2015-0905/21/2015
944-40-50-3AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-50-3 through 50-5
AmendedAccounting Standards Update No. 2015-0905/21/2015
944-40-50-4AAmendedAccounting Standards Update No. 2025-1112/08/2025
944-40-50-4A through 50-4I
AddedAccounting Standards Update No. 2015-0905/21/2015
944-40-50-4BAmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-50-4CAmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-50-5AAddedAccounting Standards Update No. 2018-1208/15/2018
944-40-50-6AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-50-7AmendedAccounting Standards Update No. 2025-1112/08/2025
944-40-50-7AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-50-7A through 50-7C
AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-50-7CAmendedAccounting Standards Update No. 2025-1112/08/2025
944-40-50-9AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-55-6AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-55-9A through 55-9G
AddedAccounting Standards Update No. 2015-0905/21/2015
944-40-55-9DAmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-55-13AmendedAccounting Standards Update No. 2014-0603/14/2014
944-40-55-13A through 55-13K
AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-55-14 through 55-17
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-55-18SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-55-20 through 55-23
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-55-24SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-55-25 through 55-28
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-40-55-29SupersededAccounting Standards Update No. 2018-1208/15/2018
944-40-55-29A through 55-29U
AddedAccounting Standards Update No. 2018-1208/15/2018
944-40-55-30AmendedAccounting Standards Update No. 2016-1912/14/2016
944-40-65-1AddedAccounting Standards Update No. 2015-0905/21/2015
944-40-65-2AmendedAccounting Standards Update No. 2022-0512/15/2022
944-40-65-2AmendedAccounting Standards Update No. 2020-1111/05/2020
944-40-65-2AmendedAccounting Standards Update No. 2019-0911/15/2019
944-40-65-2AddedAccounting Standards Update No. 2018-1208/15/2018
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nAccident Year | Added | Accounting Standards Update No. 2015-09 | 05/21/2015 |\nAcquisiti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06406e2cd9de5f7c64a8eed1bdb692677a02569e2419e8d3754049ca34a0324d","downloaded_from":"2026-09-10T02:16:26.116Z","last_downloaded_at":"2026-09-10T02:16:26.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479351","source_sha256":"161d6827498f6fb840850365f73449b777fc725f1168af64f204853d23eb7f67"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ae2a57d008c4200a0a759551d04cae6a2a380f7a812e183f8fe87387d6de6a7","downloaded_from":"2026-09-10T02:16:26.116Z","last_downloaded_at":"2026-09-10T02:16:26.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479351","source_sha256":"161d6827498f6fb840850365f73449b777fc725f1168af64f204853d23eb7f67"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a53a2b3bd8ed0c4397f77632b05b195a54f2063fd948948dac9229fe261786c3","downloaded_from":"2026-09-10T02:16:26.116Z","last_downloaded_at":"2026-09-10T02:16:26.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479351","source_sha256":"161d6827498f6fb840850365f73449b777fc725f1168af64f204853d23eb7f67"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-40-05-1","para":"05-1","html":"
This Subtopic provides guidance to insurance entities on accounting for and financial reporting of claims costs and liabilities for future policy benefits. The guidance in this Subtopic is presented in the following five Subsections:
  1. a
    General
  2. b
    Short-Duration Contracts
  3. c
    Long-Duration Contracts
  4. d
    Reinsurance Contracts
  5. e
    Financial Guarantee Insurance Contracts.
","snippet":"This Subtopic provides guidance to insurance entities on accounting for and financial reporting of claims costs and liabilities for future policy benefits. The guidance in this Subtopic is presented in the following five…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3480840bfe5b987b065b0e6b4890e9859fb6d312f43646e353d1a3527a6b299f","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}},{"citation":"944-40-05-2","para":"05-2","html":"
Claim adjustment expenses include costs incurred in the claim settlement process such as all of the following:
  1. a
    Legal fees
  2. b
    Outside adjuster fees
  3. c
    Costs to record, process, and adjust claims.
","snippet":"Claim adjustment expenses include costs incurred in the claim settlement process such as all of the following:\n(a) Legal fees\n(b) Outside adjuster fees\n(c) Costs to record, process, and adjust claims.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e7318da973504b63211e0cde70acc722e767420b43ef1635359f4172c0e7bd1","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2829cc73845d876dd1b25b9782b892912c851fd5ab64bafeaa4dc40d47771f40","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}},{"block":"Short-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-40-05-3","para":"05-3","html":"
The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of short-duration contracts.
","snippet":"The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of short-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f0788522a7c431e9f5be14cb663778ac914b78d5b3d81e30677d0c54cb967d3","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4505326110d2f288ff66e0a7d5cfe54476fa2ad64bc02276a1210969eaefbd1","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-40-05-4","para":"05-4","html":"
The Long-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of the expected cost related to long-duration insurance contracts.
","snippet":"The Long-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of the expected cost related to long-duration insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9cc28574ccb7a10f24de9d4ce51488baaf9587fbb6a00010a6fa7fff0ffbbd9e","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:77ac2f54576dde928b772aa7d4dbd54d7e16cc36af4cae4e027a679c27ec6e02","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-05-5","para":"05-5","html":"
The Reinsurance Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of reinsurance contracts.
","snippet":"The Reinsurance Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:666dba26b898ea6a8b96c5e8be435419c0b918b5b009f33b20771a1380192587","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:642eb7425be2adee08b49eea6f05c5aa72b42eef49fbb34dc22f4c54d2c7a5d2","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-05-6","para":"05-6","html":"
The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance on accounting for and financial reporting of claim liabilities for financial guarantee insurance contracts.
","snippet":"The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance on accounting for and financial reporting of claim liabilities for financial guarantee insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:736d11fd93bda6ebc0fd0d49454b950075c1c857ec6d320cdcc05c2e366c0d10","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62f25d8532aee21bb3d18296792fc20ebab2d43a310293f9b934b63847724077","downloaded_from":"2026-09-10T02:16:29.572Z","last_downloaded_at":"2026-09-10T02:16:29.572Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479324","source_sha256":"965d55b013be15d018b501901094e49866be5aa555db4ee762dc46995a243c89"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Information about Insured Financial Obligations","paragraphs":[{"citation":"944-40-05-7","para":"05-7","html":"
Insurance entities often aggregate information related to the credit standing of their insured financial obligations in a watch list or surveillance list to evaluate credit deterioration in those insured financial obligations. Those lists often are separated into groupings or categories to assist management in identifying varying degrees of credit deterioration of insured financial obligations in its portfolios.
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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15, with specific entity exceptions noted below.
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This Subtopic does not apply to mortgage guaranty insurance entities.
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The Short-Duration Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.
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The guidance in the Short-Duration Contracts Subsections of this Subtopic applies only to short-duration contracts. See the Short-Duration Contracts Subsection of Section 944-20-15 for a discussion of what constitutes a short-duration contract.
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The Long-Duration Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.
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The guidance in the Long-Duration Contracts Subsections of this Subtopic applies to long-duration contracts, including investment contracts with respect to nontraditional contract benefits referenced in paragraph 944-40-25-25B. See the Long-Duration Contracts Subsection of Section 944-20-15 for a discussion of what constitutes a long-duration contract.
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The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.
","snippet":"The Reinsurance Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9186cbeefdbaa876f83f66a90aa22db8cdfd3863d0ac9a590055712febc14a70","downloaded_from":"2026-09-10T02:16:31.680Z","last_downloaded_at":"2026-09-10T02:16:31.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479300","source_sha256":"e7d7e472c35403f45d0f54fd19038b0848768e140d9ae89aa80ee3c3d4e3224c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d474da32a9a3e00f76141ac7230157bf9ff479dbd65a3b62738265dfc89a7014","downloaded_from":"2026-09-10T02:16:31.680Z","last_downloaded_at":"2026-09-10T02:16:31.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479300","source_sha256":"e7d7e472c35403f45d0f54fd19038b0848768e140d9ae89aa80ee3c3d4e3224c"}},{"block":"Reinsurance Contracts","heading":"Instruments","paragraphs":[{"citation":"944-40-15-8","para":"15-8","html":"
The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. For guidance on identifying a reinsurance contract, see the Reinsurance Contracts Subsection of Section 944-20-15.
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The guidance in the Financial Guarantee Insurance Contracts Subsections of this Subtopic applies only to financial guarantee insurance contracts and financial guarantee reinsurance contracts.
","snippet":"The guidance in the Financial Guarantee Insurance Contracts Subsections of this Subtopic applies only to financial guarantee insurance contracts and financial guarantee reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08d0b89864e05bd8e4e7ec91dcf338807c06b8ef6e1c6c74aed6e1478be5bd57","downloaded_from":"2026-09-10T02:16:31.680Z","last_downloaded_at":"2026-09-10T02:16:31.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479300","source_sha256":"e7d7e472c35403f45d0f54fd19038b0848768e140d9ae89aa80ee3c3d4e3224c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ba730996b5aa0e176e089b96fc136d01b3e91a98ba296c123ee28f29a5636b7","downloaded_from":"2026-09-10T02:16:31.680Z","last_downloaded_at":"2026-09-10T02:16:31.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479300","source_sha256":"e7d7e472c35403f45d0f54fd19038b0848768e140d9ae89aa80ee3c3d4e3224c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa87efc631a7ca4e71b8a16bc898fb4c4243d5713201caa8e11c9d6eba836456","downloaded_from":"2026-09-10T02:16:31.680Z","last_downloaded_at":"2026-09-10T02:16:31.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479300","source_sha256":"e7d7e472c35403f45d0f54fd19038b0848768e140d9ae89aa80ee3c3d4e3224c"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Claim Costs","paragraphs":[{"citation":"944-40-25-1","para":"25-1","html":"
Both of the following shall be accrued when insured events occur:
  1. a
    A liability for unpaid claims (including estimates of costs for claims relating to insured events that have occurred but have not been reported to the insurer)
  2. b
    A liability for claim adjustment expenses; that is a liability for all costs expected to be incurred in connection with the settlement of unpaid claims.
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The estimated liability for unpaid claims includes the amount of money that will be required for future payments on both of the following:
  1. a
    Claims that have been reported to the insurer
  2. b
    Claims relating to insured events that have occurred but have not been reported to the insurer as of the date the liability is estimated.
","snippet":"The estimated liability for unpaid claims includes the amount of money that will be required for future payments on both of the following:\n(a) Claims that have been reported to the insurer\n(b) Claims relating to insured …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52d00f025971b540de14bd1f63f6382844068d24f765ea25b225e245753bd2ce","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-3","para":"25-3","html":"
Claim adjustment expenses include any legal and adjusters' fees, and the costs of paying claims and all related expenses.
","snippet":"Claim adjustment expenses include any legal and adjusters' fees, and the costs of paying claims and all related expenses.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:babcbc992b5e1906236eb9fcecd73cdabc1bc964ff487c1950594b134bc787b3","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-4","para":"25-4","html":"
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The conditions in paragraph 450-20-25-2 shall be considered with respect to the risk of loss assumed by an insurance entity for catastrophes that may occur during the terms of policies in force to determine whether accrual of a loss is appropriate.
","snippet":"The conditions in paragraph 450-20-25-2 shall be considered with respect to the risk of loss assumed by an insurance entity for catastrophes that may occur during the terms of policies in force to determine whether accru…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e982b3b9febb7435a4017cbeda030fd5a2d1e1baa5af4367bdf970349e50654","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a8fcd24802eccdfcfa028bd373696aa4513823949bbb4246ffc9d1322948df0","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Long-Duration Contracts","heading":"Overall","paragraphs":[{"citation":"944-40-25-7","para":"25-7","html":"
A liability for expected costs relating to most types of long-duration contracts shall be accrued over the current and expected renewal periods of the contracts.
","snippet":"A liability for expected costs relating to most types of long-duration contracts shall be accrued over the current and expected renewal periods of the contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83a3a8ce357122ad12df22bcd2e003cd358c16d2d4b7576cb7bb7079c1027c52","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-8","para":"25-8","html":"
The present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders—that is, a liability for future policy benefits—shall be accrued when premium revenue is recognized.
","snippet":"The present value of estimated future policy benefits to be paid to or on behalf of policyholders less the present value of estimated future net premiums to be collected from policyholders—that is, a liability for future…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d59aa150cc0ae92a3e3cd31bdc06d6cee9e6b0e2b67b0ec6b563dc6e1cc01d8b","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-9","para":"25-9","html":"
In addition, as discussed in paragraph 944-40-25-1 liabilities for unpaid claims and claim adjustment expenses shall be accrued when insured events occur.
","snippet":"In addition, as discussed in paragraph 944-40-25-1 liabilities for unpaid claims and claim adjustment expenses shall be accrued when insured events occur.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5600a81fa8b135fd745ac2d0eae7e92a8f4c7bfe01748505b5c91a3a1f2f7017","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-10","para":"25-10","html":"
A liability for future policy benefits relating to long-duration contracts other than title insurance contracts shall be accrued when premium revenue is recognized.
","snippet":"A liability for future policy benefits relating to long-duration contracts other than title insurance contracts shall be accrued when premium revenue is recognized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4aff4072cccc73a226314b069414485127dc78ebc8a2020ad45e302054a4f1a","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b5e820ed52e3089728a239c9cb0872a0f2b6815162c4fa77416e2fc6afaa434","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Long-Duration Contracts","heading":"Traditional and Limited-Payment Long-Duration Contracts","paragraphs":[{"citation":"944-40-25-11","para":"25-11","html":"
The liability for future policy benefits represents the present value of future benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of future net premiums receivable under the insurance contracts. In no event shall net premiums exceed gross premiums.
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
","snippet":"The liability for future policy benefits represents the present value of future benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of future net premiums receivable u…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4c2f11b3dfb9f976a9a22adfb1dd27925c419788f9c5870d74e64066b4f7011","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b80c4ad61907a0f12eb28b8b46d07669910e8967d789ab5a229c9a31c90496e9","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts and Nontraditional Contract Benefits","paragraphs":[{"citation":"944-40-25-12","para":"25-12","html":"
Sales inducements provided to the contract holder, whether for universal life-type contracts (or investment contracts) shall be recognized as part of the liability for policy benefits over the period in which the contract must remain in force for the contract holder to qualify for the inducement or at the crediting date, if earlier, in accordance with paragraphs
944-40-25-13 through 25-16
. No adjustments shall be made to reduce the liability related to the sales inducements for anticipated surrender charges, persistency, or early withdrawal contractual features.
","snippet":"Sales inducements provided to the contract holder, whether for universal life-type contracts (or investment contracts) shall be recognized as part of the liability for policy benefits over the period in which the contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef4e8fb90252d2b446db49a53386d69b152d898235e55723ba8c5edf40e96b99","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-13","para":"25-13","html":"
The balance that accrues to the benefit of the contract holder for a long-duration insurance contract that is subject to paragraph 944-40-30-16 (or an investment contract that is subject to paragraphs 944-20-15-14 and
944-825-25-1 through 25-2
) is the accrued account balance. The liability for the contract is the combination of amounts recorded in separate account liabilities and general account policyholder liabilities.
","snippet":"The balance that accrues to the benefit of the contract holder for a long-duration insurance contract that is subject to paragraph 944-40-30-16 (or an investment contract that is subject to paragraphs 944-20-15-14 and 94…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b832179410f26b4eab5ed4ce7c938a4f164d5e4153339ad26a5f276b6c82091a","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-14","para":"25-14","html":"
The accrued account balance equals:
  1. a
    Deposit(s) net of withdrawals
  2. b
    Plus amounts credited pursuant to the contract
  3. c
    Less fees and charges assessed
  4. d
    Plus additional interest (for example, persistency bonus)
  5. e
    Other adjustments (for example, appreciation or depreciation recognized in accordance with paragraphs
    944-40-25-18 through 25-21
    to the extent not already credited and included in [b]).
For purposes of item (d), additional interest is an amount that is required to be accrued under the liability valuation model that has not yet been credited to the contract holder's account.
","snippet":"The accrued account balance equals:\n(a) Deposit(s) net of withdrawals\n(b) Plus amounts credited pursuant to the contract\n(c) Less fees and charges assessed\n(d) Plus additional interest (for example, persistency bonus)\n(e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5b90a95e0c55689a94a7e98d3e6cb051126123a5c7f437ca3f2052eb3162653","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-15","para":"25-15","html":"
Additional interest, if any, shall be accrued through the balance sheet date at the rate that would accrue to the balance available in cash, or its equivalent, before reduction for future fees and charges, at the earlier of the date that the interest rate credited to the contract is reset (the reset date) or contractual maturity.
","snippet":"Additional interest, if any, shall be accrued through the balance sheet date at the rate that would accrue to the balance available in cash, or its equivalent, before reduction for future fees and charges, at the earlier…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe62b54f7fbf5d21522e410070bc651b6c2f05cc7ccc5b739f874f80f8473a23","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-16","para":"25-16","html":"
For purposes of the preceding paragraph, an asset or contract is the equivalent of cash if it has both of the following characteristics:
  1. a
    It has a readily determinable fair value.
  2. b
    It can be converted to cash without incurring significant transaction costs.
","snippet":"For purposes of the preceding paragraph, an asset or contract is the equivalent of cash if it has both of the following characteristics:\n(a) It has a readily determinable fair value.\n(b) It can be converted to cash witho…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e10cfbeaa3ab93eac3fadc942747c8d0df77b870ffafa0ce435149bbd4f991d4","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-17","para":"25-17","html":"
Any changes in the accrued account balance resulting from the application of the guidance in paragraphs
944-40-25-13 through 25-25
shall be reflected in net income in the period of the changes.
","snippet":"Any changes in the accrued account balance resulting from the application of the guidance in paragraphs 944-40-25-13 through 25-25 shall be reflected in net income in the period of the changes.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a4afaa56fe7d25bfd6c0b645b72796c2d5cbc5ce7f09e19671fb0c6ad2a9cfd","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-18","para":"25-18","html":"
Some contracts, such as variable life and annuity and certain group pension participating and other experience-rated contracts, provide for a return through periodic crediting rates, surrender adjustments, or termination adjustments based on the total return of a contractually referenced pool of assets owned by the insurance entity. Insurance entities shall first determine whether such contracts are required to be accounted for under the provisions of Subtopic 815-10 or 815-15.
","snippet":"Some contracts, such as variable life and annuity and certain group pension participating and other experience-rated contracts, provide for a return through periodic crediting rates, surrender adjustments, or termination…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0badf68c902eb79faad0c03cd75317edf5c59d0b735c42cb047dbe4fd735c78a","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-19","para":"25-19","html":"
To the extent a contract described in the preceding paragraph is not required to be accounted for under the provisions of Subtopic 815-10 or 815-15, the amount of other adjustments described in paragraph
944-40-25-13 through 25-16
shall be based on the fair value of the referenced pool of assets at the balance sheet date, even if the related assets are not recognized at fair value, to the extent not already credited to the accrued account balance and included in paragraph 944-40-25-14(b).
","snippet":"To the extent a contract described in the preceding paragraph is not required to be accounted for under the provisions of Subtopic 815-10 or 815-15, the amount of other adjustments described in paragraph 944-40-25-13 thr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b906709822e872e3aa1b7b5aff99734759d1ba56cc979942c62962f94ab4ba4","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-20","para":"25-20","html":"
Amounts determined for other adjustments shall not be reduced for future fees and charges.
","snippet":"Amounts determined for other adjustments shall not be reduced for future fees and charges.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f799a5ec012bb50acfd237ad395fb0a495b141ce4b19729cf04d822b87ae857","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-21","para":"25-21","html":"
A loss shall be recognized in the statement of operations to the extent an asset reported in the general account is designated as part of a contractually referenced pool of assets and on that designation date has an unrealized loss.
","snippet":"A loss shall be recognized in the statement of operations to the extent an asset reported in the general account is designated as part of a contractually referenced pool of assets and on that designation date has an unre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:12870330fed68858872cd5ab41fdf44246589b734d816d2fe023c42d6c025378","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-22","para":"25-22","html":"
For contracts that have features that may result in more than one potential account balance, the accrued account balance shall be based on the highest contractually determinable balance that will be available in cash or its equivalent at contractual maturity or the reset date, before reduction for future fees and charges.
","snippet":"For contracts that have features that may result in more than one potential account balance, the accrued account balance shall be based on the highest contractually determinable balance that will be available in cash or …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60fc5c01e5da9255773354fba2b63e35b8484e54f31df507aca0069576949c29","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-23","para":"25-23","html":"
An example of a contract subject to the preceding paragraph is a contract that provides a return based on a contractually referenced pool of real estate assets owned by the insurance entity but also provides for minimum investment return guarantees.
","snippet":"An example of a contract subject to the preceding paragraph is a contract that provides a return based on a contractually referenced pool of real estate assets owned by the insurance entity but also provides for minimum …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7dbebe4b99a6fd2bb513c5b6852130f55a60ce7ffdd10e4046784ea585665caf","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-24","para":"25-24","html":"
For contracts in which amounts credited as interest to the contract holder are reset periodically, the accrued balance shall be based on the highest crediting rate guaranteed or declared through the reset date.
","snippet":"For contracts in which amounts credited as interest to the contract holder are reset periodically, the accrued balance shall be based on the highest crediting rate guaranteed or declared through the reset date.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31713fa1105cca2d774e4ef9e70fb9628cbae355cf7d56cb7d9e72929e36a3ab","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-25","para":"25-25","html":"
The accrued account balance shall not reflect surrender adjustments (for example, market value annuity adjustments, surrender charges, or credits). For a description of a market value annuity and market value annuity adjustments, see paragraph 944-20-05-28.
","snippet":"The accrued account balance shall not reflect surrender adjustments (for example, market value annuity adjustments, surrender charges, or credits). For a description of a market value annuity and market value annuity adj…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:201eff59d682eaf7939e2ab9f68c1b768ec09489358bd2f33b41121f01765f2c","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-25A","para":"25-25A","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":"sha256:2b510dd399e65a775933d51fb7f7d7e37278aa266d116951a97ca7c9646334f8","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-25B","para":"25-25B","html":"
The following guidance addresses contracts or contract features that provide for potential benefits in addition to the account balance:
  1. a
    An insurance entity shall first determine at contract inception whether such benefits should be accounted for under the provisions of paragraph 944-40-25-25C.
  2. b
    For benefits that are not accounted for under the provisions of paragraph 944-40-25-25C, an insurance entity shall then determine whether such benefits should be accounted for under the provisions of Subtopic 815-10 or 815-15.
  3. c
    All other benefits shall be accounted for under the provisions of paragraphs 944-40-25-26 through 25-27A, as applicable.
","snippet":"The following guidance addresses contracts or contract features that provide for potential benefits in addition to the account balance:\n(a) An insurance entity shall first determine at contract inception whether such ben…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3519bd2ce33d9e59ca086c116ae35653fce7121446333d5135a28c29fc269576","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-25C","para":"25-25C","html":"
A contract or contract feature that both provides protection to the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk shall be recognized as a market risk benefit.
","snippet":"A contract or contract feature that both provides protection to the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk shall be recogniz…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44577f1942e87cb708c06da8e510d79287a6d5392f617176f143d6d9725ae5e5","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-25D","para":"25-25D","html":"
In evaluating whether a contract or contract feature meets the conditions in paragraph 944-40-25-25C, an insurance entity shall consider that:
  1. a
    Protection refers to the transfer of a loss in, or shortfall (that is, the difference between the account balance and the benefit amount) of, the contract holder's account balance from the contract holder to the insurance entity, with such transfer exposing the insurance entity to capital market risk that would otherwise have been borne by the contract holder (or beneficiary).
  2. b
    Protection does not include the death benefit component of a life insurance contract (that is, the difference between the account balance and the death benefit amount). This condition does not apply to an investment contract or an annuity contract (including an annuity contract classified as an insurance contract).
  3. c
    A nominal risk, as explained in paragraph 944-20-15-21, is a risk of insignificant amount or a risk that has a remote probability of occurring. A market risk benefit is presumed to expose the insurance entity to other-than-nominal capital market risk if the benefit would vary more than an insignificant amount in response to capital market volatility.
","snippet":"In evaluating whether a contract or contract feature meets the conditions in paragraph 944-40-25-25C, an insurance entity shall consider that:\n(a) Protection refers to the transfer of a loss in, or shortfall (that is, th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd62f07ba2fb6f3dbb01a9f56de8f75934ea718d632eeea0407f36ca25e56752","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-26","para":"25-26","html":"
This guidance addresses contract features that provide for potential benefits in addition to the account balance that are payable only upon annuitization, such as annuity purchase guarantees or guaranteed minimum income benefits that are not market risk benefits, and two-tier annuities.
","snippet":"This guidance addresses contract features that provide for potential benefits in addition to the account balance that are payable only upon annuitization, such as annuity purchase guarantees or guaranteed minimum income …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4148d80303f40d17a4eea2a608e766386147b45691d5c650498b903491ae2941","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-27","para":"25-27","html":"
If the contract feature is not required to be accounted for under paragraph 944-40-25-25C or the provisions of Topic 815 on derivatives and hedging, an additional liability for the contract feature shall be established if the present value of expected annuitization payments at the expected annuitization date exceeds the expected account balance at the expected annuitization date.
","snippet":"If the contract feature is not required to be accounted for under paragraph 944-40-25-25C or the provisions of Topic 815 on derivatives and hedging, an additional liability for the contract feature shall be established i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7dea3ae48c4702c76da0b834958f1743c2a1991110771568dbb17af1e23fec9","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-27A","para":"25-27A","html":"
If the contract feature is not required to be accounted for under paragraph 944-40-25-25C or the provisions of Topic 815 on derivatives and hedging and if the amounts assessed against the contract holder each period for the insurance benefit feature of an insurance contract are assessed in a manner that is expected to result in profits in earlier years and losses in subsequent years from the insurance benefit function, a liability for death or other insurance benefits shall be recognized in addition to the account balance.
","snippet":"If the contract feature is not required to be accounted for under paragraph 944-40-25-25C or the provisions of Topic 815 on derivatives and hedging and if the amounts assessed against the contract holder each period for …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4ec811c239c058321890e9769a667969a562f395b74f162dd164840f3d30d6d","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-28","para":"25-28","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":"sha256:9e7bd47394c50ead296066e83b406b3a4abd28b790daf63da122358ef38bf9f1","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c120314dd8cf46d66e1aae16d4cb93d115ea5a0e720af2ec110186cb5dc75a3","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Long-Duration Contracts","heading":"Certain Participating Life Insurance Contracts","paragraphs":[{"citation":"944-40-25-29","para":"25-29","html":"
A liability for future policy benefits relating to participating life insurance contracts that meet the criteria in paragraph 944-20-15-3 shall be equal to the sum of all of the following:
  1. a
    The net level premium reserve for death and endowment policy benefits
  2. b
    The liability for terminal dividends
  3. c
    Any probable loss (premium deficiency) as described in paragraphs
    944-60-25-7 through 25-9
    .
","snippet":"A liability for future policy benefits relating to participating life insurance contracts that meet the criteria in paragraph 944-20-15-3 shall be equal to the sum of all of the following:\n(a) The net level premium reser…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fedba88af90bd0d8cc13dd59aacea0ddcb08bd4867094240b9acf9f1749af2f9","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-30","para":"25-30","html":"
Terminal dividends shall be accrued in the liability for future policy benefits if both of the following conditions are met:
  1. a
    Payment of the dividend is probable.
  2. b
    The amount can be reasonably estimated.
These conditions should be used in the same sense that they are used in Subtopic 450-20.
","snippet":"Terminal dividends shall be accrued in the liability for future policy benefits if both of the following conditions are met:\n(a) Payment of the dividend is probable.\n(b) The amount can be reasonably estimated.\nThese cond…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3af81640b50220f7616840cfcab0da0d6798f91b6fe2c7d486dc1ef0a58d0211","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-31","para":"25-31","html":"
Death and surrender benefits incurred shall be recognized as expenses in the statement of earnings.
","snippet":"Death and surrender benefits incurred shall be recognized as expenses in the statement of earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:49b41dcef1d914977069adc1450bcfffd1a16d6bc68cabec6bcdaa4d156d25ec","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a7cefccf5f226408ce7f955577389a05e1659cb5586d7c26085eee7c51475fc","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Long-Duration Contracts","heading":"Title Insurance Contracts","paragraphs":[{"citation":"944-40-25-32","para":"25-32","html":"
A liability for estimated claim costs relating to title insurance contracts, including estimates of costs relating to incurred-but-not-reported claims, shall be accrued when title insurance premiums are recognized as revenue under Section 944-605-25. Estimated claim costs shall be recognized when premium revenue is recognized because the insurance provides protection against claims caused by problems with title to real estate arising out of ascertainable insured events that generally exist at that time.
","snippet":"A liability for estimated claim costs relating to title insurance contracts, including estimates of costs relating to incurred-but-not-reported claims, shall be accrued when title insurance premiums are recognized as rev…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b874db418cb0ed4e0cf93b8bde7248ae9b6677eec304921e0a3d2e42f9ab1a9","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d213b3c2a214f3c8b5c17c96ea9ee49d90016f523fb1549c97275ad567631d6","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-25-33","para":"25-33","html":"
Reinsurance contracts do not result in immediate recognition of gains unless the reinsurance contract is a legal replacement of one insurer by another and thereby extinguishes the ceding entity's liability to the policyholder.
","snippet":"Reinsurance contracts do not result in immediate recognition of gains unless the reinsurance contract is a legal replacement of one insurer by another and thereby extinguishes the ceding entity's liability to the policyh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0eabbc1db7be05026f13d50a850b9f64029884c88889ac14f78f93ce48b8ccde","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-34","para":"25-34","html":"
Reinsurance recoverables shall be recognized in a manner consistent with the liabilities (including estimated amounts for claims incurred but not reported and future policy benefits) relating to the underlying reinsured contracts. Assumptions used in estimating reinsurance recoverables shall be consistent with those used in estimating the related liabilities.
","snippet":"Reinsurance recoverables shall be recognized in a manner consistent with the liabilities (including estimated amounts for claims incurred but not reported and future policy benefits) relating to the underlying reinsured …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b1c2e4bee11bbf60fb97142cdef43569cefb356dc6dd42910f9b6ca1f9f2b56","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-35","para":"25-35","html":"
If a reinsurer assumes an insurance benefit feature, the reinsurer shall assess the significance of mortality and morbidity risk within the reinsurance contract following the guidance in paragraphs
944-20-15-20 through 15-25
regardless of whether there is an account balance.
","snippet":"If a reinsurer assumes an insurance benefit feature, the reinsurer shall assess the significance of mortality and morbidity risk within the reinsurance contract following the guidance in paragraphs 944-20-15-20 through 1…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed2ec154df9f3f823003d082394cee68955d7c0a843c5a05458d04d30a71c860","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-36","para":"25-36","html":"
The reinsurer shall determine the classification of the reinsurance contract as an investment contract or as an insurance contract at the inception of the reinsurance contract.
","snippet":"The reinsurer shall determine the classification of the reinsurance contract as an investment contract or as an insurance contract at the inception of the reinsurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:335da70aa1a473f1ab912df3a500eb8503f9d37c6628a9a021c98ef2ba4ccef5","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-37","para":"25-37","html":"
For reinsurance contracts, the mortality or morbidity risk could be deemed other than nominal even if the original issuer did not determine mortality or morbidity to be other than nominal.
","snippet":"For reinsurance contracts, the mortality or morbidity risk could be deemed other than nominal even if the original issuer did not determine mortality or morbidity to be other than nominal.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5438477c8035f9c7b1f3a163aca6d005f7ee4466d8b21b7383b5c32fc49ba874","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-38","para":"25-38","html":"
There is a rebuttable presumption that a contract has significant mortality risk where the additional insurance benefit would vary significantly in response to capital markets volatility.
","snippet":"There is a rebuttable presumption that a contract has significant mortality risk where the additional insurance benefit would vary significantly in response to capital markets volatility.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e97f1ab88c03a863b8386d444fef7af097fe2ac5d811191ac018481a6fa3856","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-39","para":"25-39","html":"
Similarly, the issuer of a contract that provides only an insurance benefit feature that wraps a noninsurance contract, for example, a guaranteed minimum death benefit related to a mutual fund balance, shall evaluate its contract in the same manner as described in paragraphs
944-40-25-35 through 25-38
.
","snippet":"Similarly, the issuer of a contract that provides only an insurance benefit feature that wraps a noninsurance contract, for example, a guaranteed minimum death benefit related to a mutual fund balance, shall evaluate its…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b29b73a1b747170a4d42cf21140085aeb6255d8b278aa6884e4f5aa3bab85be5","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-40","para":"25-40","html":"
A reinsurer may agree to reinsure all or a portion of certain annuitizationor death or other insurance benefits (see paragraphs 944-40-25-25B through 25-27A). Both the ceding entity and the reinsurer shall first determine whether such a reinsurance contract should be accounted for under the market risk benefitprovisions of paragraph 944-40-25-25C. For reinsurers, the reference to the account balance in paragraph 944-40-25-25D refers to the underlying contract between the direct writer and the contract holder. If the reinsurance contract is not accounted for under the market risk benefit provisions of paragraph 944-40-25-25C, both the ceding entity and the reinsurer shall then determine whether such a reinsurance contract should be accounted for under the provisions of Subtopic 815-10 or 815-15.
","snippet":"A reinsurer may agree to reinsure all or a portion of certain annuitizationor death or other insurance benefits (see paragraphs 944-40-25-25B through 25-27A). Both the ceding entity and the reinsurer shall first determin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7b554033f7e79953c795187a7909b4a7a67d29c160d288419d8e5794a27dc589","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"citation":"944-40-25-41","para":"25-41","html":"
If the reinsurance contract is not required to be accounted for under the provisions of paragraph 944-40-25-25C or Subtopic 815-10 or 815-15, the entity shall apply the guidance in paragraphs 944-40-25-26 through 25-27A.
","snippet":"If the reinsurance contract is not required to be accounted for under the provisions of paragraph 944-40-25-25C or Subtopic 815-10 or 815-15, the entity shall apply the guidance in paragraphs 944-40-25-26 through 25-27A.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:297c75a0b8ccebbcc573ecd9ccf0baf4308963d19bea6e5cd0fa10b8c123111d","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eec172dfd73bb59b2b3c1e28997193900c8b3f65da9bf21d8d7fad576363146c","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-25-42","para":"25-42","html":"
An insurance entity shall recognize a claim liability on a financial guarantee insurance contract when the insurance entity expects that a claim loss will exceed the unearned premium revenue for that contract based on the present value of expected net cash outflows to be paid under the insurance contract.
","snippet":"An insurance entity shall recognize a claim liability on a financial guarantee insurance contract when the insurance entity expects that a claim loss will exceed the unearned premium revenue for that contract based on th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a086ab3758396b9098e4a1c7c739e129b4b64128d37f3c6c07e393ac2ecb5537","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e1944389107741843e58cdc3cd40344938f22e2f8c1186f68bf8abf7380f981","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33643539047cd44b2a1091902237e4167582c4c53fe15b90dfdc935c87d47189","downloaded_from":"2026-09-10T02:16:37.798Z","last_downloaded_at":"2026-09-10T02:16:37.798Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479250","source_sha256":"27141c9daa6007c6b0b07ac355a4fe35d74794c95d682145d74202ad14e98767"}},{"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"}},{"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"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts and Nontraditional Contract Benefits","paragraphs":[{"citation":"944-40-45-1","para":"45-1","html":"
The change in the estimate of the additional liability for death or other insurance benefits recognized under the guidance in paragraph 944-40-25-27A as of the beginning of the current period (that is, the liability remeasurement gain or loss as a result of applying the revised benefit ratio) shall be presented as a separate component of total benefit expense in the statement of operations, either parenthetically or as a separate line item. The liability remeasurement gain or loss may be reported together with the liability remeasurement gain or loss related to annuitization benefits and traditional and limited-payment contracts.
","snippet":"The change in the estimate of the additional liability for death or other insurance benefits recognized under the guidance in paragraph 944-40-25-27A as of the beginning of the current period (that is, the liability reme…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13ef5f242390a4d8b57a9e88ac6cfdd4df6078d2fa6fde2f3484386079103902","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}},{"citation":"944-40-45-2","para":"45-2","html":"
The change in the estimate of the additional liability for annuitization benefits recognized under the guidance in paragraph 944-40-25-27 as of the beginning of the current period (that is, the liability remeasurement gain or loss as a result of applying the revised benefit ratio) shall be presented as a separate component of total benefit expense in the statement of operations, either parenthetically or as a separate line item. The liability remeasurement gain or loss may be reported together with the liability remeasurement gain or loss related to death or other insurance benefits and traditional and limited-payment contracts.
","snippet":"The change in the estimate of the additional liability for annuitization benefits recognized under the guidance in paragraph 944-40-25-27 as of the beginning of the current period (that is, the liability remeasurement ga…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f9cce829a60de080b927f660959c5fc151a9502ba74e437d1375fc66c9af0d94","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}},{"citation":"944-40-45-3","para":"45-3","html":"
The carrying amount of market risk benefits shall be presented separately in the statement of financial position. The change in fair value related to market risk benefits shall be presented separately in net income, except 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 presented separately in other comprehensive income.
","snippet":"The carrying amount of market risk benefits shall be presented separately in the statement of financial position. The change in fair value related to market risk benefits shall be presented separately in net income, exce…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b054ef9278493479809077bebcc9cb341af5c5ea1076f6f68ecde55506c72001","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f373eaa436a44218b38bfff9544c0f79e6b25b9fae1e1c679c3c3c116122f6c4","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}},{"block":"Long-Duration Contracts","heading":"Traditional and Limited-Payment Contracts","paragraphs":[{"citation":"944-40-45-4","para":"45-4","html":"
The current-period change in estimate of the liability for future policy benefits (that is, the liability remeasurement gain or loss) calculated under paragraph 944-40-35-6A(a)(1) shall be presented as a separate component of total benefit expense in the statement of operations, either parenthetically or as a separate line item. For limited-payment contracts, the corresponding current-period change in estimate of the deferred profit liability (that is, the liability remeasurement gain or loss) calculated under paragraph 944-605-35-1C shall be presented separately in net income, either parenthetically or as a separate line item. The liability remeasurement gain or loss for traditional and limited-payment contracts may be reported together with the liability remeasurement gain or loss related to annuitization benefits and death or other insurance benefits.
","snippet":"The current-period change in estimate of the liability for future policy benefits (that is, the liability remeasurement gain or loss) calculated under paragraph 944-40-35-6A(a)(1) shall be presented as a separate compone…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:99060b0b352f8d6afc10029b655059a2978fdc1dd4ac091821617c438b855a6c","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf789eca4cd1834541659246b6d87528f0616fab7149ac822d1351f31efa7db7","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36e740cff588237d8dfe950a3ee53b22a91211b391eb95e860705f536b53dd48","downloaded_from":"2026-09-10T02:16:46.680Z","last_downloaded_at":"2026-09-10T02:16:46.680Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480112","source_sha256":"43490ea4ebabec167fc227079c0b6a9237821e467d95502d6ca4c93c889c2a1d"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-40-50-1","para":"50-1","html":"
An insurance entity shall disclose in its financial statements the basis for estimating the liabilities for unpaid claims and claim adjustment expenses.
","snippet":"An insurance entity shall disclose in its financial statements the basis for estimating the liabilities for unpaid claims and claim adjustment expenses.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9fe18c02dadcef090b286c6b74ece425469694ed8a326437b610df90c20e41a3","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-2","para":"50-2","html":"
Paragraph superseded by Accounting Standards Update No. 2015-09.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:378a016f625ac4bb9003db50092b7ac9207ccd00b70f79ab0967ae49e298fd50","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-3","para":"50-3","html":"
For annual and interim reporting periods, all of the following information about the liability for unpaid claims and claim adjustment expenses shall be presented in a tabular rollforward:
  1. a
    The balance in the liability for unpaid claims and claim adjustment expenses at the beginning of each fiscal year presented in the statement of income, and the related amount of reinsurance recoverable on unpaid claims
  2. b
    Year-to-date incurred claims and claim adjustment expenses with separate disclosure of the provision for insured events of the current fiscal year and of increases or decreases in the provision for insured events of prior fiscal years
  3. c
    Year-to-date payments of claims and claim adjustment expenses with separate disclosure of payments of claims and claim adjustment expenses attributable to insured events of the current fiscal year and to insured events of prior fiscal years
  4. cc
    The ending balance in the liability for unpaid claims and claim adjustment expenses and the related amount of reinsurance recoverable.
  5. d
    Subparagraph superseded by Accounting Standards Update No. 2015-09.
In addition, an insurance entity shall disclose the reasons for the change in incurred claims and claim adjustment expenses recognized in the income statement attributable to insured events of prior fiscal years and indicate whether additional premiums or return premiums have been accrued as a result of the prior-year effects.
","snippet":"For annual and interim reporting periods, all of the following information about the liability for unpaid claims and claim adjustment expenses shall be presented in a tabular rollforward:\n(a) The balance in the liability…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:763fa9c1baa71390db875756a6b13daa316465efa9b078dc2c8072ac68485583","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4","para":"50-4","html":"
For annual reporting periods, an insurance entity shall disclose management's policies and methodologies for estimating the liability for unpaid claims and claim adjustment expenses for difficult-to-estimate liabilities, such as any of the following:
  1. a
    Claims for toxic waste cleanup
  2. b
    Asbestos-related illnesses
  3. c
    Other environmental remediation exposures.
","snippet":"For annual reporting periods, an insurance entity shall disclose management's policies and methodologies for estimating the liability for unpaid claims and claim adjustment expenses for difficult-to-estimate liabilities,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:339be07be793977e8262fa67ead7704b9607a0e5078b096216bea9897efff05f","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1aeaef55a6c29453d2924901c6ae713d0e34e48e231e069c054a62b9e5e2986e","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Short-Duration Contracts","heading":"Information about the Liability for Unpaid Claims and Claim Adjustment Expenses","paragraphs":[{"citation":"944-40-50-4A","para":"50-4A","html":"
For health insurance claims, an insurance entity shall aggregate or disaggregate the information in paragraph 944-40-50-3 so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have significantly different characteristics (see paragraphs
944-40-55-9A through 55-9C
).
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1For health insurance claims, an insurance entity shall aggregate or disaggregate the information disclosed in interim and annual reporting periods in accordance with paragraph 944-40-50-3 so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have significantly different characteristics (see paragraphs
944-40-55-9A through 55-9C
).
","snippet":"For health insurance claims, an insurance entity shall aggregate or disaggregate the information in paragraph 944-40-50-3 so that useful information is not obscured by either the inclusion of a large amount of insignific…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d05b739354ee49dce45b761d0afb8a1ce905f56c3f0e8c66876e3c3d46545dc","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4B","para":"50-4B","html":"
For annual reporting periods, an insurance entity shall disclose in a tabular format, as of the date of the latest statement of financial position presented, undiscounted information about claims development by accident year, including separate information about both of the following on a net basis after risk mitigation through reinsurance:
  1. a
    Incurred claims and allocated claim adjustment expenses
  2. b
    Paid claims and allocated claim adjustment expenses.
The disclosure about claims development by accident year should present information for the number of years for which claims incurred typically remain outstanding, but need not exceed 10 years including the most recent reporting period presented. All periods presented in the disclosure about claims development that precede the most recent reporting period shall be considered supplementary information. For the most recent reporting period presented, the disclosure about claims development shall include the total net outstanding claims for accident years not separately presented as part of the claims development (see paragraph 944-40-55-9E).
","snippet":"For annual reporting periods, an insurance entity shall disclose in a tabular format, as of the date of the latest statement of financial position presented, undiscounted information about claims development by accident …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b61711eec0cbbb2515cee13b3bbab8547e3f1d640c02338e76b5a8ef2bdd2b56","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4C","para":"50-4C","html":"
For annual reporting periods, an insurance entity shall reconcile the disclosure about incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid claims and claim adjustment expenses for the most recent reporting period presented, with separate disclosure of reinsurance recoverable on unpaid claims (see paragraph 944-40-55-9E).
","snippet":"For annual reporting periods, an insurance entity shall reconcile the disclosure about incurred and paid claims development information to the aggregate carrying amount of the liability for unpaid claims and claim adjust…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:472d8d8ba28777c27456d6e84473e2a5add5acb99f854e63a8311160af8b57f5","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4D","para":"50-4D","html":"
For annual reporting periods, an insurance entity shall quantitatively disclose the following for each accident year presented in the disclosures about incurred claims development (see paragraph 944-40-55-9E) for the most recent reporting period presented:
  1. a
    The total of incurred-but-not-reported liabilities plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses
  2. b
    Cumulative claim frequency information, unless it is impracticable to do so. If it is impracticable to disclose claim frequency information, where the term impracticable has the same meaning as impracticability in paragraph 250-10-45-9, an insurance entity shall disclose that fact and explain why the disclosure is impracticable.
","snippet":"For annual reporting periods, an insurance entity shall quantitatively disclose the following for each accident year presented in the disclosures about incurred claims development (see paragraph 944-40-55-9E) for the mos…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab253fd1a42d68e5ed4b9412f17aa8e758f313e97b057f8d025ea2a79770e2c1","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4E","para":"50-4E","html":"
For interim and annual reporting periods, for health insurance claims, an insurance entity shall disclose the total of incurred-but-not-reported liabilities plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses.
","snippet":"For interim and annual reporting periods, for health insurance claims, an insurance entity shall disclose the total of incurred-but-not-reported liabilities plus expected development on reported claims included in the li…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f78bfa4c1b9954f98335344b11087e8e25fe7254d80fbd9962e388bd0a0329ca","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4F","para":"50-4F","html":"
An insurance entity shall describe both of the following:
  1. a
    Its methodologies for:
    1. 1
      Determining the presented amounts of both incurred-but-not-reported liabilities and expected development on reported claims required by paragraphs
      944-40-50-4D through 50-4E
    2. 2
      Calculating cumulative claim frequency information required by paragraph 944-40-50-4D
  2. b
    Significant changes to those methodologies. When describing (2) above the insurance entity also shall include whether frequency is measured by claim event or individual claimant and how the insurance entity considers claims that do not result in a liability (see paragraph 944-40-55-9D).
","snippet":"An insurance entity shall describe both of the following:\n(a) Its methodologies for:\n(1) Determining the presented amounts of both incurred-but-not-reported liabilities and expected development on reported claims require…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3153e50d39b0e42419d1212c8fe00fd2ec20bbba999a2ebf91e62ec10380867","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4G","para":"50-4G","html":"
For annual reporting periods, for all claims except health insurance claims, an insurance entity shall disclose as supplementary information the historical average annual percentage payout of incurred claims by age, net of reinsurance (that is, history of claims duration by age), as of the most recent reporting period. This information shall be disclosed for the same number of accident years presented in the disclosures required by paragraph 944-40-50-4B (see paragraphs
944-40-55-9F through 55-9G
).
","snippet":"For annual reporting periods, for all claims except health insurance claims, an insurance entity shall disclose as supplementary information the historical average annual percentage payout of incurred claims by age, net …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b7b0ea19a19a80773cefeeaf4259a8991cfa16e4d043ba9526641538ac518b7","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4H","para":"50-4H","html":"
An insurance entity shall disclose the information required by paragraphs
944-40-50-4B through 50-4G
and 944-40-50-5 in a manner that allows users to understand the amount, timing, and uncertainty of cash flows arising from the liabilities. An insurance entity shall aggregate or disaggregate the disclosures in paragraphs
944-40-50-4B through 50-4G
and 944-40-50-5 so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have significantly different characteristics (see paragraphs
944-40-55-9A through 55-9C
). An insurance entity need not provide disclosures about claims development for insignificant categories; however, balances for insignificant categories shall be included in the reconciliation required by paragraph 944-40-50-4C.
","snippet":"An insurance entity shall disclose the information required by paragraphs 944-40-50-4B through 50-4G and 944-40-50-5 in a manner that allows users to understand the amount, timing, and uncertainty of cash flows arising f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b93c3875efeee73a958c282fbd41f3f895f484d3039559d8142f5d16291d272","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-4I","para":"50-4I","html":"
For annual reporting periods, an insurance entity shall disclose information about significant changes in methodologies and assumptions used in calculating the liability for unpaid claims and claim adjustment expenses, including reasons for the change and the effects on the financial statements for the most recent reporting period presented.
","snippet":"For annual reporting periods, an insurance entity shall disclose information about significant changes in methodologies and assumptions used in calculating the liability for unpaid claims and claim adjustment expenses, i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2565ffdae46e319e7cde13f84497a97eb3b703b087fe65c4d433a67ec5a55a8","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-5","para":"50-5","html":"
For liabilities for unpaid claims and claim adjustment expenses that are presented at present value in the financial statements, an insurance entity shall disclose all of the following in its annual financial statements:
  1. a
    For each period presented in the statement of financial position, the carrying amount of liabilities for unpaid claims and claim adjustment expenses relating to short-duration contracts that are presented at present value
  2. b
    The range of interest rates used to discount the liabilities disclosed in (a).
  3. c
    The aggregate amount of discount related to the time value of money deducted to derive the liabilities disclosed in (a)
  4. d
    For each period presented in the statement of income, the amount of interest accretion recognized
  5. e
    The line item(s) in the statement of income in which the interest accretion is classified.
","snippet":"For liabilities for unpaid claims and claim adjustment expenses that are presented at present value in the financial statements, an insurance entity shall disclose all of the following in its annual financial statements:…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e73ae92b05a129bda2e58647dad5cabfc52c7a42c450b87e0b9f96594d00a1f7","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40fbf1ce89e383afc3c0ecc9e3bc206068cd29caae52c10d7f4d2036496dd034","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-40-50-5A","para":"50-5A","html":"
An insurance entity shall disclose the information required by paragraphs 944-40-50-6 through 50-7C in a manner that allows users to understand the amount, timing, and uncertainty of future cash flows arising from the liabilities. An insurance entity shall aggregate or disaggregate the disclosures in paragraphs 944-40-50-6 through 50-7C so that useful information is not obscured by the inclusion of a large amount of insignificant detail or by the aggregation of items that have significantly different characteristics (see paragraphs
944-40-55-13F through 55-13H
). An insurance entity need not provide disclosures about liabilities for insignificant categories; however, balances for insignificant categories shall be included in the reconciliations.
","snippet":"An insurance entity shall disclose the information required by paragraphs 944-40-50-6 through 50-7C in a manner that allows users to understand the amount, timing, and uncertainty of future cash flows arising from the li…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:106be1319ab7b0782374a408a76ea0d808699defe9708204b9f9b53b51c65d10","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5bfbe09ab7cf09cc74d730fa6ee2e6585a5d2ed59aca787d9ce95a75f7fac35e","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Long-Duration Contracts","heading":"Liability for Future Policy Benefits and Additional Liability for Annuitization, Death, or Other Insurance Benefits","paragraphs":[{"citation":"944-40-50-6","para":"50-6","html":"
For annual and interim reporting periods, an insurance entity shall disclose the following information about the liability for future policy benefits for traditional and limited-payment contracts described in paragraph 944-40-25-11 and the additional liability for annuitization, death, or other insurance benefits described in paragraphs 944-40-25-26 through 25-27A, as applicable to each of those liabilities:
  1. a
    A year-to-date disaggregated tabular rollforward of the beginning balance to the ending balance (see paragraph 944-40-55-13I). Amounts shall be presented gross of any related reinsurance recoverable. For the liability for future policy benefits for traditional and limited-payment contracts, the insurance entity shall present expected future net premiums separate from expected future benefits.
  2. b
    For each disaggregated rollforward presented, either as a component of the rollforward or as accompanying information:
    1. 1
      For traditional and limited-payment contracts, the undiscounted and discounted ending balance of expected future gross premiums and expected future benefits and expenses
    2. 2
      Actual experience during the period for mortality, morbidity, and lapses, compared with what was expected for the period
    3. 3
      The amount of revenue and interest recognized in the statement of operations
    4. 4
      The amount of any related reinsurance recoverable
    5. 5
      The weighted-average duration of the liability
    6. 6
      The weighted-average interest rate, a description of the technique(s) used to determine the interest rate assumption, and information about any adjustments to observable market information.
  3. c
    A reconciliation of the disaggregated rollforwards to the aggregate ending carrying amount of the liability for future policy benefits and the additional liability in the statement of financial position and the total revenue and interest recognized in the statement of operations.
  4. d
    For traditional and limited-payment contracts, qualitative and quantitative information about adverse development that resulted in an immediate charge to current-period net income because of net premiums exceeding gross premiums.
","snippet":"For annual and interim reporting periods, an insurance entity shall disclose the following information about the liability for future policy benefits for traditional and limited-payment contracts described in paragraph 9…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9bf97ece5e7fe94cc171946feba18db25ede593b80950c99c77226315c7f92e","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-7","para":"50-7","html":"
For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose information about:
  1. a
    The significant inputs, judgments, assumptions, and methods used in measuring the liability for future policy benefits and the additional liability
  2. b
    Changes in those significant inputs, judgments, and assumptions during the period, and the effect of those changes on the measurement of the liability.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1For interim and annual reporting periods, an insurance entity shall disclose information about:
  1. a
    The significant inputs, judgments, assumptions, and methods used in measuring the liability for future policy benefits and the additional liability
  2. b
    Changes in those significant inputs, judgments, and assumptions during the period, and the effect of those changes on the measurement of the liability.
","snippet":"For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose information about:\n(a) The significant inputs, judgments, assumptions, and methods used in me…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dce7db436a685c9187b09dd68d9fb0a9f0d8693121aea6ccec9d07886847801e","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2d4d112c8eed345f69605ec00bb034fc6d246cd9f55f489f7b61a876edb08a0","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Long-Duration Contracts","heading":"Liability for Policyholders' Account Balances","paragraphs":[{"citation":"944-40-50-7A","para":"50-7A","html":"
For annual and interim reporting periods, an insurance entity shall disclose the following information about the liability for policyholders' account balances described in paragraph 944-40-25-14 (excluding separate accounts described in paragraph 944-80-25-2):
  1. a
    A year-to-date disaggregated tabular rollforward of the beginning balance to the ending balance (see paragraph 944-40-55-13J).
  2. b
    For each disaggregated rollforward:
    1. 1
      The weighted-average crediting rate
    2. 2
      The guaranteed benefit amounts in excess of the current account balances
    3. 3
      Cash surrender value.
  3. c
    A reconciliation of the disaggregated rollforwards to the aggregate ending carrying amount of the liability for policyholders' account balances in the statement of financial position.
  4. d
    A tabular presentation of policyholders' account balances by range of guaranteed minimum crediting rates and the related range of the difference between rates being credited to policyholders and the respective guaranteed minimums.
","snippet":"For annual and interim reporting periods, an insurance entity shall disclose the following information about the liability for policyholders' account balances described in paragraph 944-40-25-14 (excluding separate accou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45f074a52e045c1988e825375bebab7619d14de4c8c77ff73ca98f78143205a3","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e9f5eec03ca721f3a67df123cb3c5723409279f9520603c6442e081e1a20e83a","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Long-Duration Contracts","heading":"Market Risk Benefits","paragraphs":[{"citation":"944-40-50-7B","para":"50-7B","html":"
For annual and interim reporting periods, an insurance entity shall disclose the following information about market risk benefits:
  1. a
    A year-to-date disaggregated tabular rollforward of the beginning balance to the ending balance (see paragraph 944-40-55-13K)
  2. b
    For each disaggregated rollforward, the guaranteed benefit amounts in excess of the current account balances (for example, the net amount at risk) and weighted-average attained age of contract holders
  3. c
    A reconciliation of the disaggregated rollforwards to the aggregate ending carrying amount in the statement of financial position, disaggregated between market risk benefits that are in an asset position and those that are in a liability position.
","snippet":"For annual and interim reporting periods, an insurance entity shall disclose the following information about market risk benefits:\n(a) A year-to-date disaggregated tabular rollforward of the beginning balance to the endi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:470fc7f04e1012b296eac74239a27583b7b6ecf922a6a466a6c6ed7aa726bd7b","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"citation":"944-40-50-7C","para":"50-7C","html":"
For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose information about:
  1. a
    The significant inputs, judgments, assumptions, and methods used in measurement
  2. b
    Changes in those significant inputs, judgments, and assumptions during the period and the effect of those changes on the measurement of market risk benefits.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1For interim and annual reporting periods, an insurance entity shall disclose information about:
  1. a
    The significant inputs, judgments, assumptions, and methods used in measurement
  2. b
    Changes in those significant inputs, judgments, and assumptions during the period and the effect of those changes on the measurement of market risk benefits.
","snippet":"For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose information about:\n(a) The significant inputs, judgments, assumptions, and methods used in me…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d79c3285f960aac1b4dbc0e7b3c04effe2e18df3d0c49fa8c073bb87b9c93bc","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78414410d81ba1034bb83dfa99f833bc127435c4b82f19723cee2990a2c3058b","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Long-Duration Contracts","heading":"Participating Contracts","paragraphs":[{"citation":"944-40-50-8","para":"50-8","html":"
An insurance entity shall disclose in the financial statements, with respect to long-duration participating life-insurance contracts that meet the criteria in paragraph 944-20-15-3, the methods and assumptions used in estimating the liability for future policy benefits.
","snippet":"An insurance entity shall disclose in the financial statements, with respect to long-duration participating life-insurance contracts that meet the criteria in paragraph 944-20-15-3, the methods and assumptions used in es…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6982ef15da8bc1df97bbb54f8c44879655dfa8afd3776f16f2673bb977bab3d7","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b37749298ac427fd1e41cf8e8795fe176663e0c2a0bd6d4701b954d79059f447","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-40-50-9","para":"50-9","html":"
To meet the disclosure objective in paragraph 944-20-50-7, an insurance entity shall disclose all of the following information for each annual period (and in an interim period if a significant change has occurred in that interim period) unless otherwise indicated below:
  1. a
    For the claim liability:
    1. 1
      The weighted-average risk-free rate used to discount the claim liability.
    2. 2
      The significant component(s) of the change in the claim liability for the period, including all of the following:
      1. i
        Changes in the discount rate
      2. ii
        The accretion of the discount on the claim liability
      3. iii
        Changes in the timing
      4. iv
        Changes in the likelihood of default.
    3. 3
      The amount relating to the component(s) in item (2).
    4. 4
      The line item in the statement of income where the amount or amounts in item (2) are reported (unless separately disclosed).
    5. 5
      For each interim period, a schedule of insured financial obligations at the end of each interim period detailing, at a minimum, all of the following for each category or grouping of these financial obligations:
      1. i
        Number of issued and outstanding financial guarantee insurance contracts
      2. ii
        Remaining weighted-average contract period
      3. iii
        Insured contractual payments outstanding, segregating principal and interest
      4. iv
        Gross claim liability
      5. v
        Gross potential recoveries
      6. vi
        Discount, net (both claim liability and potential recoveries)
      7. vii
        Net claim liability
      8. viii
        Reinsurance recoverables
      9. ix
        Unearned premium revenue.
  2. b
    A description of the insurance entity's risk-management activities used to track and monitor deteriorating insured financial obligations, including all of the following:
    1. 1
      A description of each grouping or category used to track and monitor deteriorating insured financial obligations
    2. 2
      The insurance entity's policies for placing an insured financial obligation in, and monitoring, each grouping or category
    3. 3
      The insurance entity's policies for avoiding or mitigating claim liabilities
    4. 4
      The related expense and liability reported during the period for risk mitigation activities (not including reinsurance)
    5. 5
      A description of where the risk mitigation activities expense and liability are reported in the statement of income and the statement of financial position, respectively.
Example 2 (see paragraph 944-40-55-32) illustrates the application of the requirement in items (a)(5) and (b)(1) through (5).
","snippet":"To meet the disclosure objective in paragraph 944-20-50-7, an insurance entity shall disclose all of the following information for each annual period (and in an interim period if a significant change has occurred in that…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fde7bc74c942e0567cf52ce3da0ac138489df8cb66e4248b11c60ba64a7c9eee","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de4b5768db8bff575a711603c559e2b347cb28ea0735960bbbb409d0e914035d","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75b3f9614af71749ad4fac1ab019b92f01d3ca7d03a42f45c9eba7c9dca497cd","downloaded_from":"2026-09-10T02:16:48.542Z","last_downloaded_at":"2026-09-10T02:16:48.542Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480081","source_sha256":"8c708debf09164ffed624bc299abe3fc6a08505ab3699d3e6616979ed23a5e68"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"944-40-55-1","para":"55-1","html":"
This implementation guidance addresses paragraph 944-40-25-6, which states that the conditions in paragraph 450-20-25-2 shall be considered with respect to the risk of loss assumed by an insurance entity for catastrophes that may occur during the terms of policies in force to determine whether accrual of a loss is appropriate.
","snippet":"This implementation guidance addresses paragraph 944-40-25-6, which states that the conditions in paragraph 450-20-25-2 shall be considered with respect to the risk of loss assumed by an insurance entity for catastrophes…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3ae90a45025c475492b8a27146e5c2afb349eae5596301749421de8b76588e67","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-2","para":"55-2","html":"
At the time that a property and casualty insurance entity or reinsurance entity issues an insurance policy covering risk of loss from catastrophes, a contingency arises. The contingency is the risk of loss assumed by the insurance entity; that is, the risk of loss from catastrophes that may occur during the term of the policy. The insurance entity has not assumed risk of loss for catastrophes that may occur beyond the term of the policy. Clearly, therefore, no asset has been impaired or liability incurred with respect to catastrophes that may occur beyond the terms of policies in force.
","snippet":"At the time that a property and casualty insurance entity or reinsurance entity issues an insurance policy covering risk of loss from catastrophes, a contingency arises. The contingency is the risk of loss assumed by the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5027a0a95966c7c81e14b8c639fd3b5b574259ed3052ccd6d1cc5e46e1b8786","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-3","para":"55-3","html":"
To satisfy the condition in paragraph 450-20-25-2(a) that it be probable that a liability has been incurred to existing policyholders, the occurrence of catastrophes (that is, the confirming future events) would have to be reasonably predictable within the terms of policies in force. Further, to satisfy the condition in (b) in that paragraph, the amounts of losses therefrom would have to be reasonably estimable. Actuarial techniques are employed by insurance entities to predict the rate of occurrence of and amounts of losses from catastrophes over long periods of time for insurance rate-setting purposes. Predictions over relatively short periods of time, such as an individual accounting period or the terms of a large number of existing insurance policies in force, are subject to substantial deviations. Consequently, assumption of risk of loss from catastrophes by property and casualty insurance entities and reinsurance entities fails to satisfy the conditions for accrual in paragraph 450-20-25-2(a) through (b). Moreover, deferral of unearned premiums within the terms of policies in force represents the unknown liability for loss (including catastrophe losses) on unexpired policies, making an accrual inappropriate. Recognition of premium income as earned revenue within the terms of policies in force is discussed in Subtopic 944-605.
","snippet":"To satisfy the condition in paragraph 450-20-25-2(a) that it be probable that a liability has been incurred to existing policyholders, the occurrence of catastrophes (that is, the confirming future events) would have to …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e269843f883765a4b31f345756590f4d08c33cdb8a081a5f3c9fe7fad6edcf3f","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-4","para":"55-4","html":"
Deferral of any portion of premium income beyond the terms of policies in force is, in substance, similar to premature accrual of catastrophe losses and, therefore, also does not meet the conditions of paragraph 450-20-25-2.
","snippet":"Deferral of any portion of premium income beyond the terms of policies in force is, in substance, similar to premature accrual of catastrophe losses and, therefore, also does not meet the conditions of paragraph 450-20-2…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02ca16250543e5231e644813fce405f050314cb8bc83f0b5ab86c3790fa532f1","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-5","para":"55-5","html":"
The conditions for accrual in paragraph 450-20-25-2 do not prohibit a property and casualty insurance entity from accruing probable catastrophe losses that have been incurred on or before the date of its financial statements but that have not been reported by its policyholders as of that date. If the amount of loss can be reasonably estimated, that paragraph requires accrual of those incurred-but-not-reported losses.
","snippet":"The conditions for accrual in paragraph 450-20-25-2 do not prohibit a property and casualty insurance entity from accruing probable catastrophe losses that have been incurred on or before the date of its financial statem…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1590c22d0ae7e5f036efd4eea752931e347aabf801fae92b03bd5f48a2ae35d","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54edc2c4a277fa21b0927c23ccfedda30bbac54295aa43519d2c974fb34cb507","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"944-40-55-6","para":"55-6","html":"
This Example illustrates information an insurance entity would disclose to meet the requirements of paragraph 944-40-50-3. This Example presents amounts incurred and paid net of reinsurance. The information may also be presented before the effects of reinsurance with separate analysis of reinsurance recoveries and reinsurance recoverables related to the incurred and paid amounts.
","snippet":"This Example illustrates information an insurance entity would disclose to meet the requirements of paragraph 944-40-50-3. This Example presents amounts incurred and paid net of reinsurance. The information may also be p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:545a4563ac5aa45bdf3e1c9adbabe9fdb35efc77fc4e820667715183048811e7","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-7","para":"55-7","html":"
An illustrative disclosure of a liability for unpaid claims and claim adjustment expenses follows.
","snippet":"An illustrative disclosure of a liability for unpaid claims and claim adjustment expenses follows.\nNote X. Liability for Unpaid Claims and Claim Adjustment Expenses\nActivity in the liability for unpaid claims and claim a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ebbb661b890aa71a20723408262988582a3c762608a87460aab672bebeffb74","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-8","para":"55-8","html":"
This Example illustrates an insurance entity disclosure designed to meet the requirements of paragraph 944-40-50-4. Additional disclosures about the liabilities for unpaid claims and claim adjustment expenses may be required under Section 450-20-50 or 275-10-50.
","snippet":"This Example illustrates an insurance entity disclosure designed to meet the requirements of paragraph 944-40-50-4. Additional disclosures about the liabilities for unpaid claims and claim adjustment expenses may be requ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7f1c87cadaee0fe433345cd77f2bab572e367fa9d6a6987e7cf85d88c331843","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-9","para":"55-9","html":"
An illustrative disclosure of environmental-related claims follows.
","snippet":"An illustrative disclosure of environmental-related claims follows.\nNote X. Environmental-Related Claims\nIn establishing the liability for unpaid claims and claim adjustment expenses related to asbestos-related illnesses…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5c2f6269099d3f3760dfe1c3e0fd75cec31b7eb5fdebb7c0f2421375c13fbb9d","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0782b8b5faedc8cad6aeeada222cd73806ef6bfddf2f1b02f705abf9359e7ba","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"block":"Short-Duration Contracts","heading":"Implementation Guidance","paragraphs":[{"citation":"944-40-55-9A","para":"55-9A","html":"
Paragraphs 944-40-50-4A and 944-40-50-4H require an insurance entity to aggregate or disaggregate certain disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have significantly different characteristics to allow users to understand the amount, timing, and uncertainty of cash flows arising from contracts issued by insurance entities. Consequently, the extent to which an insurance entity's information is aggregated or disaggregated for the purposes of those disclosures depends on the facts and circumstances that pertain to the characteristics of the liability for unpaid claims and claim adjustment expenses.
","snippet":"Paragraphs 944-40-50-4A and 944-40-50-4H require an insurance entity to aggregate or disaggregate certain disclosures so that useful information is not obscured by either the inclusion of a large amount of insignificant …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4bc90709bae7c4d8626b204b9e20f3020d67075a1720ed04382007e5177a3ef","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-9B","para":"55-9B","html":"
When selecting the type of category to use to aggregate or disaggregate disclosures, an insurance entity should consider how information about the insurance entity's liability for unpaid claims and claim adjustment expenses has been presented for other purposes, including all of the following:
  1. a
    Disclosures presented outside the financial statements (for example, in earnings releases, annual reports, statutory filings, or investor presentations)
  2. b
    Information regularly viewed by the chief operating decision maker for evaluating financial performance
  3. c
    Other information that is similar to the types of information identified in (a) and (b) and that is used by the insurance entity or users of the insurance entity's financial statements to evaluate the insurance entity's financial performance or make resource allocation decisions.
","snippet":"When selecting the type of category to use to aggregate or disaggregate disclosures, an insurance entity should consider how information about the insurance entity's liability for unpaid claims and claim adjustment expen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60105ec3abb0b086a963f038ded8b994665fd763f122f9de1059fb41dd740fba","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-9C","para":"55-9C","html":"
Examples of categories that might be appropriate include any of the following:
  1. a
    Type of coverage (for example, major product line)
  2. b
    Geography (for example, country or region)
  3. c
    Reportable segment as defined in Topic 280 on segment reporting
  4. d
    Market or type of customer (for example, personal or commercial lines of business)
  5. e
    Claim duration (for example, claims that have short settlement periods or claims that have long settlement periods).
When applying the guidance in paragraphs 944-40-50-4A and 944-40-50-4H, an insurance entity should not aggregate amounts from different reportable segments according to Topic 280.
","snippet":"Examples of categories that might be appropriate include any of the following:\n(a) Type of coverage (for example, major product line)\n(b) Geography (for example, country or region)\n(c) Reportable segment as defined in To…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40a88d8ea8a5b4737ffc42945218dee3ff81003a6e2b40c4a9e8a3bfc391eae2","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-9D","para":"55-9D","html":"
Claim frequency information may be tracked and analyzed by an insurance entity in a variety of ways. For example, an insurance entity may track claim frequency by claim event (such as a car accident), while another entity may track claim frequency by individual claimant (such as the number of individual claimants in a car accident). Also, certain types of insurance coverage, such as excess-of-loss insurance or supplemental insurance, can experience claim activity that does not result in a liability to the insurance entity. This Subtopic does not require a particular methodology. Therefore, to allow users to understand the context of the information presented, an insurance entity should describe qualitatively the methodologies used to determine the quantitative claim frequency information presented. In certain circumstances, such as providing reinsurance on short-duration contracts or participating in residual market pools, an insurance entity may not have access to claim frequency information, in which case it may be impracticable to disclose this information. The insurance entity should disclose that fact and explain why the disclosure is impracticable.
","snippet":"Claim frequency information may be tracked and analyzed by an insurance entity in a variety of ways. For example, an insurance entity may track claim frequency by claim event (such as a car accident), while another entit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d232294dc5b959516ea5028d0c4939bcf00f9593a05b417346339bd2c9b8b28a","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d4b6e9972422c1153f4d48e5d3144d507edf7d64119a12c77bf43156c67a62b","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"block":"Short-Duration Contracts","heading":"Illustrations","paragraphs":[{"citation":"944-40-55-9E","para":"55-9E","html":"
The following Example illustrates the information that an insurance entity with one major short-duration product line (homeowners' insurance) would disclose in its 20Y6 financial statements to meet the requirements of paragraphs
944-40-50-4B through 50-4D
.
","snippet":"The following Example illustrates the information that an insurance entity with one major short-duration product line (homeowners' insurance) would disclose in its 20Y6 financial statements to meet the requirements of pa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:181679a89112a3264448f9ea3c8c29b9abcc4656ee7ad50f7a3236a9fd2a06a0","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-9F","para":"55-9F","html":"
An illustrative Example of the supplementary information that an insurance entity would disclose to meet the requirements in paragraph 944-40-50-4G is as follows.
","snippet":"An illustrative Example of the supplementary information that an insurance entity would disclose to meet the requirements in paragraph 944-40-50-4G is as follows.\nNote X: Liability for Unpaid Claims and Claim Adjustment …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:179924c5cc16993f30d48945110e016d2f816aa0931db27f89fc111c6d9c70fd","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-9G","para":"55-9G","html":"
For this illustrative Example, the approach selected by the insurance entity to compute historical claims duration using the information about claims development included in paragraph 944-40-55-9F is as follows. These calculations are for illustrative purposes only and would not be included in the disclosure.
","snippet":"For this illustrative Example, the approach selected by the insurance entity to compute historical claims duration using the information about claims development included in paragraph 944-40-55-9F is as follows. These ca…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af8dffacd3cf71c0fbe30f6314757fbaa01ac56cc347b87e1b4cf828a10d1205","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:267e8313ffa303a87c807433dcbc1c756d02b94df7dc15dc34ccc2eca8258c7d","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"block":"Long-Duration Contracts","heading":"Implementation Guidance","paragraphs":[{"citation":"944-40-55-10","para":"55-10","html":"
This implementation guidance discusses application of paragraphs
944-30-25-6 through 25-7
to the following types of sales inducements:
  1. a
    Immediate bonuses
  2. b
    Persistency bonuses
  3. c
    Enhanced crediting rate bonuses.
","snippet":"This implementation guidance discusses application of paragraphs 944-30-25-6 through 25-7 to the following types of sales inducements:\n(a) Immediate bonuses\n(b) Persistency bonuses\n(c) Enhanced crediting rate bonuses.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:440e46138c4fb29d42d48ffbee1ffa060e7440145f0efdd8407b44e8266c19ee","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-11","para":"55-11","html":"
As defined in this Subtopic, in an immediate bonus, the insurance entity is obligated to credit to the contract holder's account the sales inducement as a result of signing the contract. If the criteria in paragraphs
944-30-25-6 through 25-7
are met, an asset should be established for the same amount. Even if an entity were to impose a prepayment penalty designed to recover the sales inducement, paragraphs
944-40-30-16 through 30-19
specify that amounts assessed against policyholders in future periods cannot be considered in determining the liability for policy benefits. The prepayment penalty for the sales inducement would be treated no differently than any other surrender charge.
","snippet":"As defined in this Subtopic, in an immediate bonus, the insurance entity is obligated to credit to the contract holder's account the sales inducement as a result of signing the contract. If the criteria in paragraphs 944…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:741fd5a501833898bfb5cfc291225d27e156b55eac37a0c7225d0b2de79cdc80","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-12","para":"55-12","html":"
As defined in this Subtopic, a persistency bonus is credited to the contract holder account balance at the end of a specified period if the contract remains in force at that date. The amount that will be credited in accordance with the terms of the contract should be accrued as a component of the contract holder account balance ratably over the vesting period. If the criteria in paragraphs
944-30-25-6 through 25-7
are met, an asset should be established. While it may not become payable by the insurance entity until some future vesting or crediting date, the insurance entity is prohibited from anticipating surrenders and must assume the contract holder will persist to earn the bonus.
","snippet":"As defined in this Subtopic, a persistency bonus is credited to the contract holder account balance at the end of a specified period if the contract remains in force at that date. The amount that will be credited in acco…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68fd077d52dd985de251d3c59625a0c5a04ce5d0fa41b72fdcd6c32d661d9338","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13","para":"55-13","html":"
As defined in this Subtopic, in an enhanced-crediting-rate bonus, the insurance entity offers customers a crediting rate for a stated period in excess of that currently being offered by the entity for other similar contracts. The liability for an enhanced-crediting-rate bonus should be accrued ratably over the bonus crediting period. If the criteria in paragraphs
944-30-25-6 through 25-7
are met, an asset should be established for the same amount.
","snippet":"As defined in this Subtopic, in an enhanced-crediting-rate bonus, the insurance entity offers customers a crediting rate for a stated period in excess of that currently being offered by the entity for other similar contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9e49757a38b5e0063945d1a8fe5795f8ec361211b45226d970fa23b221117e4","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13A","para":"55-13A","html":"
Paragraphs 944-40-35-5 through 35-6A and
944-40-35-7A through 35-7B
require an insurance entity to review—and if there is a change, update—cash flow assumptions used in estimating the liability for future policy benefits at the level of aggregation at which reserves are calculated. Example 6 (beginning in paragraph 944-40-55-29H) illustrates the calculation of the liability, including subsequent changes in the estimate of the liability.
","snippet":"Paragraphs 944-40-35-5 through 35-6A and 944-40-35-7A through 35-7B require an insurance entity to review—and if there is a change, update—cash flow assumptions used in estimating the liability for future policy benefits…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0a404f54d3d7d90c2676b965ee966aa08856216f5d52df39237157546825114a","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13B","para":"55-13B","html":"
If the adjustment related to updating cash flow assumptions is an unfavorable adjustment because of expected net premiums exceeding expected gross premiums (that is, expected benefits and related expenses exceed expected gross premiums), the insurance entity should:
  1. a
    Set net premiums equal to gross premiums
  2. b
    Increase the estimate of the liability for future policy benefits as of the beginning of the current reporting period
  3. c
    Recognize a corresponding adjustment to net income for the current reporting period (see paragraph 944-40-45-4)
  4. d
    Disclose qualitative and quantitative information related to adverse development (see paragraph 944-40-50-6(d))
  5. e
    Accrue the liability for future policy benefits with net premiums being set equal to gross premiums (that is, a ratio of net premiums to gross premiums equal to 100 percent) until assumptions are subsequently updated.
","snippet":"If the adjustment related to updating cash flow assumptions is an unfavorable adjustment because of expected net premiums exceeding expected gross premiums (that is, expected benefits and related expenses exceed expected…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6997db70218e387f16d56c75a7caa604c57bb0d02a6eed4f2fa29aa4a6b58596","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13C","para":"55-13C","html":"
If the adjustment related to updating cash flow assumptions is an unfavorable adjustment but does not result in net premiums exceeding gross premiums, then the insurance entity should:
  1. a
    Increase the estimate of the liability for future policy benefits as of the beginning of the current reporting period
  2. b
    Recognize a corresponding change in estimate adjustment to net income for the current reporting period (see paragraph 944-40-45-4)
  3. c
    Accrue the liability for future policy benefits with the revised ratio of net premiums to gross premiums until assumptions are subsequently updated.
","snippet":"If the adjustment related to updating cash flow assumptions is an unfavorable adjustment but does not result in net premiums exceeding gross premiums, then the insurance entity should:\n(a) Increase the estimate of the li…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00c1454ebac2c4831d811f873d37b46a12ffb43ba7bdd138ca17beaf783e179f","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13D","para":"55-13D","html":"
If the adjustment related to updating cash flow assumptions is a favorable adjustment—including the reversal of previously recognized unfavorable adjustment described in paragraph 944-40-55-13B or 944-40-55-13C—the insurance entity should:
  1. a
    Decrease the estimate of the liability for future policy benefits as of the beginning of the current reporting period
  2. b
    Recognize a corresponding change in estimate adjustment to net income for the current reporting period (see paragraph 944-40-45-4)
  3. c
    Accrue the liability for future policy benefits with the revised ratio of net premiums to gross premiums until assumptions are subsequently updated.
","snippet":"If the adjustment related to updating cash flow assumptions is a favorable adjustment—including the reversal of previously recognized unfavorable adjustment described in paragraph 944-40-55-13B or 944-40-55-13C—the insur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:260dc976c3ee7e928fef642d0f52c34ba8755364d0b9463b0d91fe17a7cf7b07","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13E","para":"55-13E","html":"
An insurance entity should maximize the use of current observable market prices of upper-medium-grade (low-credit-risk) fixed-income instruments with durations similar to the liability for future policy benefits.
  1. a
    An insurance entity should not substitute its own estimates for observable market data unless the market data reflect transactions that are not orderly (see paragraphs
    820-10-35-54I through 35-54J
    for additional guidance on determining whether transactions are not orderly).
  2. b
    In determining points on the yield curve for which there are limited or no observable market data for upper-medium-grade (low-credit-risk) fixed-income instruments, an insurance entity should use an estimate that is consistent with existing guidance on fair value measurement in Topic 820, particularly for Level 3 fair value measurement.
","snippet":"An insurance entity should maximize the use of current observable market prices of upper-medium-grade (low-credit-risk) fixed-income instruments with durations similar to the liability for future policy benefits.\n(a) An …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:857bdec38b01f87530c79bd91f40f175d337a4c62c0bfbb5c0cb7611532ff676","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13F","para":"55-13F","html":"
To allow financial statement users to understand the amount, timing, and uncertainty of cash flows arising from contracts issued by insurance entities, paragraph 944-40-50-5A requires that an insurance entity aggregate or disaggregate certain disclosures so that useful information is not obscured by the inclusion of a large amount of insignificant detail or by the aggregation of items that have significantly different characteristics. Consequently, the extent to which an insurance entity's information is aggregated or disaggregated for the purpose of those disclosures depends on the facts and circumstances that pertain to the characteristics of the liability for future policy benefits, the additional liability, the liability for policyholders' account balances, separate account liabilities, market risk benefits, or deferred acquisition costs (and balances amortized on a basis consistent with deferred acquisition costs).
","snippet":"To allow financial statement users to understand the amount, timing, and uncertainty of cash flows arising from contracts issued by insurance entities, paragraph 944-40-50-5A requires that an insurance entity aggregate o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b6f7f4dd68500d3a7aa43c6650367ac485de12d758704ba84e8660f994ff42c","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13G","para":"55-13G","html":"
In addition, when selecting the type of category to use to aggregate or disaggregate disclosures, an insurance entity should consider how information about the disclosed items has been presented for other purposes, including the following:
  1. a
    Disclosures presented outside the financial statements (for example, in statutory filings)
  2. b
    Information regularly viewed by the chief operating decision maker for evaluating financial performance
  3. c
    Other information that is similar to the types of information identified in (a) and (b) and that is used by the insurance entity or users of the insurance entity's financial statements to evaluate the insurance entity's financial performance or make resource allocation decisions.
","snippet":"In addition, when selecting the type of category to use to aggregate or disaggregate disclosures, an insurance entity should consider how information about the disclosed items has been presented for other purposes, inclu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1e5c84963d24fce4f979883c9361f9973f758ccef8df7dcf6affe19df45b1d5","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13H","para":"55-13H","html":"
Examples of categories that might be appropriate to consider to aggregate or disaggregate disclosures include the following:
  1. a
    Type of coverage (for example, major product line)
  2. b
    Geography (for example, country or region)
  3. c
    Market or type of customer (for example, individual or group lines of business).
When applying the guidance in paragraphs
944-30-50-2A through 50-2B
, 944-40-50-6 through 50-7C, and
944-80-50-1 through 50-2
, an insurance entity should not aggregate amounts from different reportable segments according to Topic 280, if applicable.
","snippet":"Examples of categories that might be appropriate to consider to aggregate or disaggregate disclosures include the following:\n(a) Type of coverage (for example, major product line)\n(b) Geography (for example, country or r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eca084a29519f1f0ab6836d55327167bfb2ae9fd58c7b8a7c0014bb47f6773cd","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13I","para":"55-13I","html":"
The tabular rollforward of the beginning to the ending balance related to the liability for future policy benefits or the additional liability as required in paragraph 944-40-50-6 could include the following line items:
  1. a
    Issuances
  2. b
    Interest accrual
  3. c
    Net premiums or assessments collected
  4. d
    Benefit payments
  5. e
    Derecognition (lapses or withdrawals)
  6. f
    Effect of actual variances from expected experience
  7. g
    Effect of changes in cash flow assumptions
  8. h
    Effect of changes in discount rate assumptions.
","snippet":"The tabular rollforward of the beginning to the ending balance related to the liability for future policy benefits or the additional liability as required in paragraph 944-40-50-6 could include the following line items:\n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce6de63d0898a26f235f2f84d0572bbcd5615d5e46c0d8785ee1749975a74598","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13J","para":"55-13J","html":"
The tabular rollforward of the beginning to the ending balance related to the liability for policyholders' account balances as required in paragraph 944-40-50-7A could include the following line items:
  1. a
    Issuances
  2. b
    Premiums received
  3. c
    Policy charges
  4. d
    Surrenders and withdrawals
  5. e
    Benefit payments
  6. f
    Transfers from or to separate accounts
  7. g
    Interest credited.
","snippet":"The tabular rollforward of the beginning to the ending balance related to the liability for policyholders' account balances as required in paragraph 944-40-50-7A could include the following line items:\n(a) Issuances\n(b) …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d7142e4e951a81ca0df2edc9b1e0459106c44c4316c1736199b6cfa0a882a03","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-13K","para":"55-13K","html":"
The tabular rollforward of the beginning to the ending balance related to market risk benefits as required in paragraph 944-40-50-7B could include the following line items:
  1. a
    Issuances
  2. b
    Interest accrual
  3. c
    Attributed fees collected
  4. d
    Benefit payments
  5. e
    Effect of changes in interest rates
  6. f
    Effect of changes in equity markets
  7. g
    Effect of changes in equity index volatility
  8. h
    Actual policyholder behavior different from expected behavior
  9. i
    Effect of changes in future expected policyholder behavior
  10. j
    Effect of changes in other future expected assumptions
  11. k
    Effect of changes in the instrument-specific credit risk.
To the extent that the tabular rollforward of the beginning to the ending balance related to market risk benefits achieves the fair value disclosure requirements described in Section 820-10-50, an insurance entity need not duplicate the related fair value disclosure.
","snippet":"The tabular rollforward of the beginning to the ending balance related to market risk benefits as required in paragraph 944-40-50-7B could include the following line items:\n(a) Issuances\n(b) Interest accrual\n(c) Attribut…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cbb30dec1429e46e1fdc17463d0025a78af0682bf664ee6c9da9e5eace6c79ac","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d68d5fb15a92c2a21c9469d0554c370baf4e3a8d85aa4360aa96fa27f50c0e98","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"block":"Long-Duration Contracts","heading":"Illustrations","paragraphs":[{"citation":"944-40-55-14","para":"55-14","html":"
This Example illustrates how to calculate an additional liability for universal life-type contracts as discussed in paragraph 944-40-25-27A(for example, a variable universal life insurance contract no-lapse guarantee that would meet the condition in paragraph 944-40-25-25D(b) and not be accounted for as a market risk benefit). This Example assumes that the guidance in paragraphs
944-20-15-20 through 15-25
has been followed, with the conclusion that the mortality and morbidity risk associated with insurance benefit features is other than nominal.
","snippet":"This Example illustrates how to calculate an additional liability for universal life-type contracts as discussed in paragraph 944-40-25-27A(for example, a variable universal life insurance contract no-lapse guarantee tha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70e9beb7b5400c1b0cdd8a873ae0d7ef470b2d2e9b9dc02503e1ad3116c9b856","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-15","para":"55-15","html":"
This Example assumes the following for the contracts discussed:
  1. a
    The contracts have no front-end loads.
  2. b
    The mortality assessments include any explicit assessments for enhanced death benefit feature.
  3. c
    The surrender charges are calculated based on a percentage of premiums.
  4. d
    The expense assessments are a fixed annual charge.
  5. e
    The discount rate is 8 percent
  6. f
    The contracts do not include market risk benefits.
","snippet":"This Example assumes the following for the contracts discussed:\n(a) The contracts have no front-end loads.\n(b) The mortality assessments include any explicit assessments for enhanced death benefit feature.\n(c) The surren…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cba03c0f5516ad210855d2ae0600585be8467382bacd6486dfc053cb1e5da89b","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-16","para":"55-16","html":"
Paragraphs
944-40-55-25 through 55-28
contain the same basic assumptions as paragraph 944-40-55-20, but with the effect on the components of the additional liability of a 10 percent increase in account balances (not shown in schedules) in Year 2.
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This Example illustrates computations involved in the following:
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
  2. b
    Benefit ratio
  3. c
    Additional liability
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
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Paragraph superseded by Accounting Standards Update No. 2018-12.
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Columns in the computations that follow do not cross-foot due to rounding.
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Computation of components of the additional liability follows.
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Computation of the benefit ratio follows.
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Computation of the Year 1 additional liability follows.
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The additional liability schedule follows.
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Paragraph superseded by Accounting Standards Update No. 2018-12.
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Computation of components of the additional liability with a 10 percent increase in the account balance in Year 2 follows.
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Computation of the benefit ratio at Year 2 follows.
","snippet":"Computation of the benefit ratio at Year 2 follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71bc98e1d70f510c5bbad99f27f4f81b362d990a15d80499263f1f7d5ba00792","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-27","para":"55-27","html":"
Computation of the Year 2 additional liability follows.
","snippet":"Computation of the Year 2 additional liability follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e70bf1e08606e90af6fa448f7fa76ddf94da3727f8e7b4c20a77cad5b8cc8ba9","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-28","para":"55-28","html":"
The updated additional liability schedule follows.
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Paragraph superseded by Accounting Standards Update No. 2018-12.
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A contract holder deposits $100,000 in a deferred annuity (either fixed or variable) that provides for a guaranteed minimum accumulation benefit that guarantees that at a specified anniversary date (for example, 5 years) the contract holder's account balance will be the greater of the following:
  1. a
    The account value
  2. b
    Deposits less partial withdrawals accumulated at 3 percent interest compounded annually.
","snippet":"A contract holder deposits $100,000 in a deferred annuity (either fixed or variable) that provides for a guaranteed minimum accumulation benefit that guarantees that at a specified anniversary date (for example, 5 years)…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9455dc1ac09cfe8a83f9ff435f5a961734a71d0b5956d03900afb043bb700797","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29B","para":"55-29B","html":"
The contract holder's account balance is exposed to stock market performance. At the specified anniversary date the contract holder's account balance has declined to $80,000 due to stock market declines. The guaranteed minimum value of the $100,000 deposit compounded annually at 3 percent interest is $115,930. The contract holder's account balance will be increased to the greater amount, resulting in an account balance of $115,930. In this Example, the guaranteed minimum accumulation benefit meets the criteria for a market risk benefit in accordance with paragraph 944-40-25-25C because the guaranteed minimum accumulation benefit protects the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk. Specifically, the insurance entity compensates the contract holder for the shortfall (due to stock market declines) between the account balance amount of $80,000 and the guaranteed amount of $115,930. The guaranteed minimum accumulation benefit should be measured at fair value in accordance with paragraph 944-40-30-19C. Similarly, if on the date of the death of the contract holder the deferred annuity provides a guaranteed minimum death benefit amount of $115,930 while the account balance is $80,000, the guaranteed minimum death benefit meets the criteria for a market risk benefit in accordance with paragraph 944-40-25-25C because the insurance entity provides compensation for the shortfall (due to stock market declines) between the account balance amount of $80,000 and the guaranteed amount of $115,930.
","snippet":"The contract holder's account balance is exposed to stock market performance. At the specified anniversary date the contract holder's account balance has declined to $80,000 due to stock market declines. The guaranteed m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0f3b60da2ff56bbf37c7ab6ff0276c236d6ccb98f231cec0a00ca26b3f8535a","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29C","para":"55-29C","html":"
A contract holder deposits $100,000 in a deferred annuity (either fixed or variable) that provides a guaranteed minimum income benefit. The contract specifies that if the contract holder elects to annuitize, the amount available to annuitize will be the higher of the then account balance or the sum of deposits less withdrawals. The contract holder's account balance is exposed to stock market performance. At the date that the contract holder chooses to annuitize, the account balance has declined to $80,000 due to stock market declines.
","snippet":"A contract holder deposits $100,000 in a deferred annuity (either fixed or variable) that provides a guaranteed minimum income benefit. The contract specifies that if the contract holder elects to annuitize, the amount a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24a3a712b66111e9497e5658bd6624e3c4d82c1ef98ae13fce18c390cce30fb0","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29D","para":"55-29D","html":"
In this Example, the guaranteed minimum income benefit meets the criteria for a market risk benefit in accordance with paragraph 944-40-25-25C because the guaranteed minimum income benefit protects the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk. Specifically, the insurance entity compensates the contract holder for the shortfall (due to stock market declines) between the account balance amount of $80,000 and the $100,000 guaranteed amount at the annuitization date. During the accumulation phase, the guaranteed minimum income benefit feature should be measured at fair value in accordance with paragraph 944-40-30-19C. Similarly, if the deferred annuity provides a guaranteed minimum withdrawal benefit or a guaranteed minimum lifetime withdrawal benefit that protects the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk, the guaranteed minimum withdrawal benefit or the guaranteed minimum lifetime withdrawal benefit meets the criteria for a market risk benefit.
","snippet":"In this Example, the guaranteed minimum income benefit meets the criteria for a market risk benefit in accordance with paragraph 944-40-25-25C because the guaranteed minimum income benefit protects the contract holder fr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c16d2c38e731e8ecce1fb3d93bbd8e74df10f3b8881699b4b2ed656aab8dcad","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29E","para":"55-29E","html":"
This Example illustrates the information that an insurance entity with two major long-duration product lines (term life and whole life) should disclose in its 20X2 financial statements to meet certain requirements of paragraph 944-40-50-6.
","snippet":"This Example illustrates the information that an insurance entity with two major long-duration product lines (term life and whole life) should disclose in its 20X2 financial statements to meet certain requirements of par…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2fa38389a5476690d3f4935dee4e675409d85dfc42e545332082f5cec1a9531","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29F","para":"55-29F","html":"
This Example illustrates the information that an insurance entity with two major long-duration products with policyholders' account balances (universal life and fixed annuities) should disclose in its 20X2 financial statements to meet certain requirements of paragraph 944-40-50-7A.
","snippet":"This Example illustrates the information that an insurance entity with two major long-duration products with policyholders' account balances (universal life and fixed annuities) should disclose in its 20X2 financial stat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:346fbaca95a7c0906e4d1098bb4023f310db4bd998ec43c8321599bae1512ccb","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29G","para":"55-29G","html":"
This Example illustrates the information that an insurance entity with market risk benefits should disclose in its 20X2 financial statements to meet certain requirements of paragraph 944-40-50-7B.
","snippet":"This Example illustrates the information that an insurance entity with market risk benefits should disclose in its 20X2 financial statements to meet certain requirements of paragraph 944-40-50-7B.\nNote X: Market Risk Ben…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e626fbbe43c522e409a338a055878c08bc2468ea49d7bef757c48eeeb9fcd4a5","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29H","para":"55-29H","html":"
This Example illustrates an approach to updating assumptions used to measure the liability for future policy benefits related to traditional life insurance contracts.
","snippet":"This Example illustrates an approach to updating assumptions used to measure the liability for future policy benefits related to traditional life insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76c26264e210cef877781a6c2d2c1151892af6871c1a91d6dcf0bec96a695e03","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29I","para":"55-29I","html":"
This Example assumes the following for the contracts discussed:
  1. a
    At contract inception:
    1. 1
      The insurance entity issues 1,000 guaranteed-renewable 20-year term life insurance contracts that are grouped into a single cohort for purposes of measuring the liability for future policy benefits.
    2. 2
      Face amount per contract: $200,000.
    3. 3
      Annual premium per contract: $500.
    4. 4
      Discount rate: 0 percent.
    5. 5
      Lapse rate: 5 percent for all years.
    6. 6
      Mortality rate: 0.1 percent in Year 1, increasing linearly to 0.29 percent in Year 20.
    7. 7
      For ease of illustration, no expenses are assumed, benefit payments and premium receipts occur at the end of the year, and annual periods are presented.
  2. b
    During Year 6: The insurance entity experiences unfavorable mortality that is 20 percent higher than expected. The insurance entity determines that it does not need to change its future mortality or lapse assumptions.
  3. c
    During Year 9: After experiencing continued unfavorable mortality (20 percent higher than expected in Years 7 through 9), the insurance entity increases its mortality assumption by 20 percent for Years 10 through 20.
  4. d
    During Year 10: The current upper-medium grade (low-credit-risk) fixed-income instrument yield increases from 0 percent to 2 percent. The insurance entity does not change its future mortality or lapse assumptions.
","snippet":"This Example assumes the following for the contracts discussed:\n(a) At contract inception:\n(1) The insurance entity issues 1,000 guaranteed-renewable 20-year term life insurance contracts that are grouped into a single c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70f6329282a157911d7f248fd1ea6625f54c4cd91f8c7454551a66715731adb3","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29J","para":"55-29J","html":"
This Example illustrates computations involved in the following:
  1. a
    Net premiums
  2. b
    Liability remeasurement adjustments.
","snippet":"This Example illustrates computations involved in the following:\n(a) Net premiums\n(b) Liability remeasurement adjustments.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dcf4680b1d027dc2c6b5b1963b9f39578342b86fc5a92cf57b688776760c45f1","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29K","para":"55-29K","html":"
The computation of the original net premium ratio at the issue date of the portfolio of contracts follows.
","snippet":"The computation of the original net premium ratio at the issue date of the portfolio of contracts follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fefcf6cf1ad1ea5b80efa0ffa71e2d82c2c870e024d67a440a89d3042603a928","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29L","para":"55-29L","html":"
The computation of the liability for future policy benefits at the end of Year 1 follows.
","snippet":"The computation of the liability for future policy benefits at the end of Year 1 follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb1face0487d2ff12f376d05f1f38151f784c1d95da13d1b65c8cd9654f37884","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29M","para":"55-29M","html":"
","snippet":"At the end of Year 6, the Entity updates its mortality assumption to reflect the unfavorable experience in that year (that is, the true-up from expected experience to actual experience) and its effect on estimated cash f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33e4c69f6aed8ad924157f1a154fa26fd48f48085d230abac8a84f1349c218f6","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29N","para":"55-29N","html":"
","snippet":"At the end of Year 9, the Entity reviews and updates its mortality assumption to reflect the unfavorable experience in that year and an increase in expected mortality in Years 10 through 20.\nThe following tables provide …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:225435fd5cbc3182bab1b98986689010d7035769f88494d81563519208293074","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29O","para":"55-29O","html":"
","snippet":"At the end of Year 10, the Entity updates its discount rate assumption from 0 percent to 2 percent.\nThe following table provides information about the effect of updating the discount rate assumption and the adjustment to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b231968ef641d2fa11414fb7b7ec5ae0e97a15c30ea8470ee810d3b13035867b","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29P","para":"55-29P","html":"
This Example illustrates an approach to updating assumptions used to measure the liability for future policy benefits with a carryover basis.
","snippet":"This Example illustrates an approach to updating assumptions used to measure the liability for future policy benefits with a carryover basis.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b79f12a65f59f0472f107d6086463a8f5ad7ba5813a874b4f24b921234326f41","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29Q","para":"55-29Q","html":"
This Example assumes the following for the contracts discussed:
  1. a
    The beginning of Year 4 carryover basis is $387.6, which will be used in subsequent recalculations of the net premium ratio.
  2. b
    At the beginning of Year 4, the Entity updates cash flow assumptions and recalculates net premiums.
  3. c
    A discount rate of 0 percent is used to compute the net premiums and the liability for future policy benefits.
  4. d
    For ease of illustration, no expenses are assumed, benefit payments and premium receipts are made at the end of the year, and annual periods are presented.
","snippet":"This Example assumes the following for the contracts discussed:\n(a) The beginning of Year 4 carryover basis is $387.6, which will be used in subsequent recalculations of the net premium ratio.\n(b) At the beginning of Yea…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1115551b57d89869a21f556483d7d8999d2ea1ccf09ff28edd149b617865dd6a","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29R","para":"55-29R","html":"
This Example illustrates computations that involve the following:
  1. a
    Net premiums
  2. b
    Updates of the net premium ratio.
","snippet":"This Example illustrates computations that involve the following:\n(a) Net premiums\n(b) Updates of the net premium ratio.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55308b56591f8904ac79bf091d199a0b69c5fcac5b63d990ff312f933854175a","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29S","para":"55-29S","html":"
At the beginning of Year 4, the Entity recalculates the net premiums as follows.
","snippet":"At the beginning of Year 4, the Entity recalculates the net premiums as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3faaf60e7a830326d173c55831837bb32206ff51df1b8a8195df7814ce7aced","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29T","para":"55-29T","html":"
The computation of the liability for future policy benefits at the end of Year 4 using the revised net premiums follows.
","snippet":"The computation of the liability for future policy benefits at the end of Year 4 using the revised net premiums follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2839ee42c5dff8bcbe476dab221d92e44bcdd288965667fe4f1c0413f5de2fc8","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-29U","para":"55-29U","html":"
At the end of Year 6, the Entity reviews and updates its mortality assumption as specified in paragraph 944-40-35-5(a), which results in an adjustment to benefit expenses and the liability for future policy benefits.
","snippet":"At the end of Year 6, the Entity reviews and updates its mortality assumption as specified in paragraph 944-40-35-5(a), which results in an adjustment to benefit expenses and the liability for future policy benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e043b8408aa6c6dcd2de28195ae9e235495663e208dc006a21254f6c82d1b782","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e1189aa08687041cebf8820d9e3d2f4bd67d6bce6a35558511d59e73074ea32","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Illustrations","paragraphs":[{"citation":"944-40-55-30","para":"55-30","html":"
This Example illustrates the measurement of the claim liability for a financial guarantee insurance contract as described in paragraph 944-40-30-33. An insurance entity determines that there is an expectation that a claim loss on an insured financial obligation (a bond) will exceed the unearned premium revenue for that contract. The present value of expected net cash outflows used to measure the claim liability considers the amount, timing, and probability of possible net cash outflows, that is, cash outflows, net of potential recoveries, to be paid to the holder of the insured financial obligation, excluding reinsurance. The present value of expected net cash outflows is 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). A calculation of the present value of expected net cash outflows follows.
","snippet":"This Example illustrates the measurement of the claim liability for a financial guarantee insurance contract as described in paragraph 944-40-30-33. An insurance entity determines that there is an expectation that a clai…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f20ee924cbbac592f5d4fdbb79eeae549cedaf21c46102a1dc0b44620a89fbd","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-31","para":"55-31","html":"
At the date the expected net cash outflows are calculated, the remaining unearned premium revenue is $1.2 million. Accordingly, a claim liability of $27.8 million is recognized in the statement of financial position ($29.0 million less $1.2 million).
","snippet":"At the date the expected net cash outflows are calculated, the remaining unearned premium revenue is $1.2 million. Accordingly, a claim liability of $27.8 million is recognized in the statement of financial position ($29…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:baa7957b7d6f6ea93143ff0a1397e23096554dfebcae543fdbedb877163f39d8","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-32","para":"55-32","html":"
This Example illustrates the disclosure of a schedule of insured financial obligations required in paragraph 944-40-50-9(a)(5) and 944-40-50-9(b)(1) through (5). This Example assumes the insurance entity uses a surveillance list with four surveillance categories to track and monitor its insured financial obligations. The surveillance list and four surveillance categories are used for illustrative purposes only. The surveillance categories in paragraph 944-40-55-33 describe the claim liability before the mitigating effects of potential recoveries.
","snippet":"This Example illustrates the disclosure of a schedule of insured financial obligations required in paragraph 944-40-50-9(a)(5) and 944-40-50-9(b)(1) through (5). This Example assumes the insurance entity uses a surveilla…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae73703a7173b7b060e0811fe2ad4b97b4195ffb167b494f39a666f027ba50e1","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-33","para":"55-33","html":"
The following are brief descriptions of each surveillance category to provide context to this Example:
  1. a
    Category A. This category includes insured financial obligations that are still currently performing (that is, insured contractual payments are made on time but the likelihood of an event of default has increased since the financial guarantee insurance contract was first issued), but if economic conditions persist for an extended period of time, they may not be performing in the future. The issuer of the insured financial obligation may have experienced credit deterioration as a result of a general economic downturn. As a result, the present value of expected net cash outflows may exceed the unearned premium revenue of the financial guarantee insurance contract some time in the future.
  2. b
    Category B. This category includes insured financial obligations that are currently characterized as potentially nonperforming and may require action by the insurance entity to avoid or mitigate an event of default.
  3. c
    Category C. This category includes insured financial obligations that are characterized as nonperforming and for which actions to date by the insurance entity have not been successful in avoiding or mitigating an event of default. The insurance entity continues its efforts to cure the claim, but an event of default is imminent.
  4. d
    Category D. This category includes insured financial obligations in which an event of default has occurred.
","snippet":"The following are brief descriptions of each surveillance category to provide context to this Example:\n(a) Category A. This category includes insured financial obligations that are still currently performing (that is, in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee32c34e04941def11d0fa96348dda37a5ce5edc44631d4fc987f2840b5fcb13","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"citation":"944-40-55-34","para":"55-34","html":"
For the insured financial obligations discussed in the preceding paragraph, the financial information might be presented as follows.
","snippet":"For the insured financial obligations discussed in the preceding paragraph, the financial information might be presented as follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f9cc81b5d636157935aea84e39c95fc063a1ddf26a17d5b7e39e59170b2d3a3","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:16c82018f3c971efd79fac8bb478e0dc0a2e2da3cea8614beac2f9d07a0f70b0","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffa8533ad0929b0a2ad919b88d27d250ba724eb060b9333950e84d2932dbda6b","downloaded_from":"2026-09-10T02:16:51.609Z","last_downloaded_at":"2026-09-10T02:16:51.609Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480046","source_sha256":"bae5dea773970a9127b9a7d18d74accea59f078ad65ec0ddef2ea162294a3965"}},{"number":"65","label":"65 Transition and Open Effective Date Information","anchor":"65-transition-and-open-effective-date-information","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-40-65-1","para":"65-1","html":"
Paragraph superseded on 06/20/2018 after the end of the transition period stated in Accounting Standards Update No. 2015-09, Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts.
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Paragraph superseded on 07/02/2026 after the end of the transition period stated in Accounting Standards Updates No. 2018-12, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, No. 2019-09, Financial Services—Insurance (Topic 944): Effective Date, No. 2020-11, Financial Services—Insurance (Topic 944): Effective Date and Early Application, and No. 2022-05, Financial Services—Insurance (Topic 944): Transition for Sold Contracts.
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The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
944-40-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
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See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration contracts.
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See paragraph 944-40-S99-1, SAB Topic 5.W, for SEC Staff views on disclosures of property casualty insurance reserves for unpaid claim costs.
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The following is the text of SAB Topic 5.W, Contingency Disclosures Regarding Property-Casualty Insurance Reserves for Unpaid Claim Costs.
","snippet":"The following is the text of SAB Topic 5.W, Contingency Disclosures Regarding Property-Casualty Insurance Reserves for Unpaid Claim Costs.\nFacts: A property-casualty insurance company (the \"Company\") has established rese…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41d324dbcc425debad5a2f911ad798d57d31fefee24acdbce80eb07fab5c5fbf","downloaded_from":"2026-09-10T02:17:13.308Z","last_downloaded_at":"2026-09-10T02:17:13.308Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479583","source_sha256":"25c4fcd775f7148731575fea04657171fd7f2907a259e228d7626d03bd8599d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f273db8c14c17d3a1891c630632fb8867d9d886b010061faa18499d560bd85b","downloaded_from":"2026-09-10T02:17:13.308Z","last_downloaded_at":"2026-09-10T02:17:13.308Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479583","source_sha256":"25c4fcd775f7148731575fea04657171fd7f2907a259e228d7626d03bd8599d4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72f576d767e1a60c4c60e76e017ba55119e09a0ecef168fd6ec630ace855e464","downloaded_from":"2026-09-10T02:17:13.308Z","last_downloaded_at":"2026-09-10T02:17:13.308Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479583","source_sha256":"25c4fcd775f7148731575fea04657171fd7f2907a259e228d7626d03bd8599d4"}}],"enrichment":{"summary":"ASC 944-40 governs how insurance entities recognize and measure claim costs and liabilities for future policy benefits, with separate subsections for short-duration contracts, long-duration contracts, reinsurance contracts, and financial guarantee insurance contracts. Its core rules are that liabilities for unpaid claims (including IBNR) and claim adjustment expenses are accrued when insured events occur, and that a liability for future policy benefits—the present value of future benefits and related expenses less the present value of future net premiums—is accrued when premium revenue is recognized. Post-ASU 2018-12, cash flow assumptions are updated at least annually with remeasurement gains/losses in net income, the discount rate is an upper-medium grade (low-credit-risk) fixed-income yield updated each reporting date through OCI, and market risk benefits are measured at fair value.","key_points":["A liability for unpaid claims (including IBNR) and a liability for claim adjustment expenses shall be accrued when insured events occur, measured at the estimated ultimate cost of settling claims using past experience adjusted for current trends, less estimated recoveries such as salvage and subrogation (944-40-25-1, 944-40-30-1 through 30-3).","For long-duration contracts, the liability for future policy benefits—the present value of future benefits and related expenses less the present value of future net premiums (net premiums never exceeding gross premiums)—is accrued when premium revenue is recognized, using assumptions for mortality, morbidity, terminations, and expenses with no provision for adverse deviation (944-40-25-8, 25-11, 944-40-30-7, 30-19).","The liability for future policy benefits is discounted at an upper-medium grade (low-credit-risk) fixed-income instrument yield reflecting the liability's duration, and contracts may not be grouped across issue years but must be grouped into quarterly or annual cohorts (944-40-30-9, 944-40-30-7).","Cash flow assumptions are reviewed and updated annually at the same time each year (and in interim periods if evidence suggests revision); net premiums are recalculated using actual historical plus updated expected experience, producing a liability remeasurement gain or loss in net income, while discount rate changes go directly to other comprehensive income and do not change net premiums (944-40-35-5, 35-6A, 944-40-45-4).","A contract or feature that both protects the contract holder from other-than-nominal capital market risk and exposes the insurer to other-than-nominal capital market risk is a market risk benefit, measured at fair value with changes in net income except instrument-specific credit risk changes, which go to OCI, and presented separately on the balance sheet (944-40-25-25C, 25-25D, 944-40-30-19C, 944-40-35-8A, 944-40-45-3).","For universal life-type contracts the liability equals the accrued account balance plus amounts assessed for future services, refundable assessments, and any premium deficiency; future assessments and surrender charges may not be anticipated, and additional liabilities for annuitization or death benefits use a benefit ratio of expected excess payments to expected assessments (944-40-30-16 through 30-18, 944-40-25-27, 25-27A, 944-40-30-20, 30-26).","A claim liability on a financial guarantee insurance contract is recognized when expected claim loss exceeds unearned premium revenue, measured at the present value of expected net cash outflows discounted at a current risk-free rate updated each reporting period (944-40-25-42, 944-40-30-31 through 30-33, 944-40-35-26)."],"categories":["Recognition","Subsequent measurement","Disclosure","Industry-specific"],"audience_level":"advanced","student_note":"This is the heart of insurance liability accounting and was overhauled by ASU 2018-12 (LDTI): the most common misunderstanding is thinking assumptions are \"locked in\" at issue—cash flow assumptions are now unlocked annually (remeasurement to net income) while discount rate changes run through OCI without touching net premiums. Also remember the subtopic's split personality: short-duration contracts accrue claims when insured events occur, while long-duration contracts accrue a future policy benefit liability when premium revenue is recognized.","related_topics":["944-20","944-30","944-60","944-605","944-80","450-20"],"key_concepts":["liability for unpaid claims","claim adjustment expenses","incurred but not reported claims","liability for future policy benefits","market risk benefit","accrued account balance","benefit ratio","claims development disclosure"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e524cc0424f4e7f8fe37626704b0971ee24c6f48d2fe4ed4c169c426f051128a","downloaded_from":"2026-09-10T02:16:26.116Z","last_downloaded_at":"2026-09-10T02:17:13.308Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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