# ASC 944-60-05: Financial Services—Insurance — Premium Deficiency and Loss Recognition — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/944/60/#05-overview-and-background)

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## ASC 944-60-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/944/60/#05-overview-and-background)

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##### [944-60-05-1](https://asc.understandingaccounting.org/asc/944/60/#944-60-05-1)

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This Subtopic provides guidance to insurance entities on accounting for and financial reporting of a premium deficiency on insurance contracts. The guidance in this Subtopic is presented in the following three Subsections:

1.  a
    
    General
    
2.  b
    
    Short-Duration Contracts
    
3.  c
    
    Long-Duration Contracts.

### Short-Duration Contracts

##### [944-60-05-2](https://asc.understandingaccounting.org/asc/944/60/#944-60-05-2)

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The Short-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of a premium deficiency on short-duration insurance contracts.

### Long-Duration Contracts

##### [944-60-05-3](https://asc.understandingaccounting.org/asc/944/60/#944-60-05-3)

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The Long-Duration Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of a premium deficiency on long-duration insurance contracts.