# ASC 944-60-30: Financial Services—Insurance — Premium Deficiency and Loss Recognition — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/944/60/#30-initial-measurement)

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## ASC 944-60-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/944/60/#30-initial-measurement)

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### Long-Duration Contracts

##### [944-60-30-1](https://asc.understandingaccounting.org/asc/944/60/#944-60-30-1)

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If the conditions in paragraph [944-60-25-7](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7) exist, an entity shall determine the [liability for future policy benefits](https://asc.understandingaccounting.org/glossary/l/#liability-for-future-policy-benefits "An accrued obligation to policyholders that relates to insured events, such as death or disability.") using revised assumptions as the remainder of the present value of future payments for benefits and related settlement costs (determined using revised assumptions based on actual and anticipated experience) minus the present value of future gross premiums (also determined using revised assumptions based on actual and anticipated experience).

##### [944-60-30-2](https://asc.understandingaccounting.org/asc/944/60/#944-60-30-2)

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A premium deficiency shall then be determined as the liability measured in paragraph [944-60-30-1](https://asc.understandingaccounting.org/asc/944/60/#944-60-30-1)minus the liability for future policy benefits at the valuation date, reduced by the unamortized present value of future profits.