{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/","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","title":"Financial Services—Insurance","area":"Industry","group":"9XX Financial Services","subtopics":[{"number":"944-10","topic":"944","title":"Overall","area":"Industry","paragraphs":14,"summary":"ASC 944-10 is the Overall subtopic of the Financial Services—Insurance Topic; it serves as the roadmap and scope gate for all insurance-specific accounting guidance. It lists the Topic's Subtopics (acquisition costs, claim costs and liabilities for future policy benefits, policyholder dividends, premium deficiency, separate accounts, and the statement/disclosure subtopics) and identifies the four contract-type Subsections used throughout: short-duration, long-duration, reinsurance, and financial guarantee insurance contracts. The guidance is incremental industry-specific guidance—entities in scope must still apply all other applicable GAAP.","concepts":["insurance entity","incremental industry-specific guidance","short-duration contracts","long-duration contracts","reinsurance contracts","financial guarantee insurance contracts","scope of insurance accounting","captive and reciprocal insurers"],"categories":["Industry-specific","Recognition","Presentation"],"level":"introductory","topic_title":"Financial Services—Insurance","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-10-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
944-10-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
944-10-05-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-10-65-1AddedAccounting Standards Update No. 2010-2610/13/2010
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The Financial Services—Insurance Topic provides guidance on financial accounting and reporting by insurance entities. The Financial Services—Insurance Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Insurance Activities
  3. c
    Acquisition Costs
  4. d
    Claim Costs and Liabilities for Future Policy Benefits
  5. e
    Policyholder Dividends
  6. f
    Premium Deficiency and Loss Recognition
  7. g
    Separate Accounts
  8. h
    Balance Sheet
  9. i
    Income Statement
  10. j
    Notes to Financial Statements
  11. k
    Receivables
  12. l
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  13. m
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  14. n
    Other Assets and Deferred Costs
  15. o
    Property, Plant, and Equipment
  16. p
    Liabilities
  17. q
    Debt
  18. r
    Equity
  19. s
    Revenue Recognition
  20. t
    Other Expenses
  21. u
    Income Taxes
  22. v
    Business Combinations
  23. w
    Derivatives and Hedging
  24. x
    Financial Instruments.
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Guidance that applies only to a specific type of contract has been presented in the following four subsections:
  1. a
    Short-Duration Contracts
  2. b
    Long-Duration Contracts
  3. c
    Reinsurance Contracts
  4. d
    Financial Guarantee Insurance Contracts.
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Each Subtopic provides background on the guidance provided. Each Subtopic identifies any additional Subsections used.
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The Subtopics within the Financial Services—Insurance Topic provide only incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Financial Services—Insurance Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.
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The guidance in the Financial Services—Insurance Topic applies to all of the following entities:
  1. a
    Life and health insurance entities, including both:
    1. 1
      Stock life insurance entities
    2. 2
      Mutual life insurance entities.
  2. b
    Property and liability insurance entities (also known as property and casualty insurance entities), which include all of the following entities:
    1. 1
      Stock entities
    2. 2
      Mutual entities.
    3. 3
      Paragraph not used.
  3. c
    Title insurance entities
  4. d
    Assessment entities
  5. e
    Fraternal benefit societies
  6. f
    Mortgage guaranty insurance entities
  7. g
    Financial guaranty insurance entities
  8. h
    Pools other than public-entity risk pools
  9. i
    Syndicates
  10. j
    Captive insurance entities
  11. k
    Reinsurance entities
  12. l
    Reciprocal exchange or interinsurance exchange.
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Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2010-26, Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.
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The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
944-10-S99-1 through S99-3
 Amended Accounting Standards Update No. 2019-07 07/26/2019
944-10-S99-1 Amended Accounting Standards Update No. 2010-21 08/02/2010
944-10-S99-3 Amended Accounting Standards Update No. 2010-21 08/02/2010
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See paragraph 944-10-S99-1, Regulation S-X Rule 7-01, for the entities required to comply with the SEC requirements in this Subtopic.
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See paragraph 944-10-S99-2, Regulation S-X Rule 7-02, for the requirements pertaining to the presentation of financial statements for insurance entities.
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See paragraph 944-10-S99-3, Regulation S-X Rule 7-05, for the required supplemental schedules in reports of insurance entities.
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The following is the text of Regulation S-X Rule 7-01, Application of §§210.7-01 to 210.7-05 (17 CFR 210.7-01).
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The following is the text of Regulation S-X Rule 7-02, General Requirement (17 CFR 210.7-02).
","snippet":"The following is the text of Regulation S-X Rule 7-02, General Requirement (17 CFR 210.7-02).\n(a) The requirements of the general rules in §§ 210.1-01 to 210.4-10 (Articles 1, 2, 3, 3A and 4) shall be applicable except w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3fc14b9c34cd3e6f79d966b24979def47e991f62c5e81270096eefac6da36d41","downloaded_from":"2026-09-10T02:14:54.583Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479913","source_sha256":"774fa8682b85b1bbef776a8cdc0edd455d802e82031bc4e73bfee8e162bd2bab"}},{"citation":"944-10-S99-3","para":"S99-3","html":"
The following is the text of Regulation S-X Rule 7-05, What Schedules Are to Be Filed (17 CFR 210.7-05).
","snippet":"The following is the text of Regulation S-X Rule 7-05, What Schedules Are to Be Filed (17 CFR 210.7-05).\n(a) Except as expressly provided otherwise in the applicable form:\n(1) The schedule specified below in this section…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8878992c2572ccf1f73ad3a65aac8d1c67c809ad1a0551be16b89e3f9c4ce69","downloaded_from":"2026-09-10T02:14:54.583Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479913","source_sha256":"774fa8682b85b1bbef776a8cdc0edd455d802e82031bc4e73bfee8e162bd2bab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:38eea68f7308a02515e7819b939bd770557c419454e70cdc49c0c797bd4ef3d5","downloaded_from":"2026-09-10T02:14:54.583Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479913","source_sha256":"774fa8682b85b1bbef776a8cdc0edd455d802e82031bc4e73bfee8e162bd2bab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b5afe9d99918ccea1737ce74adceefabd3000b1aac4298cbda208c0a83d7071","downloaded_from":"2026-09-10T02:14:54.583Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479913","source_sha256":"774fa8682b85b1bbef776a8cdc0edd455d802e82031bc4e73bfee8e162bd2bab"}}],"enrichment":{"summary":"ASC 944-10 is the Overall subtopic of the Financial Services—Insurance Topic; it serves as the roadmap and scope gate for all insurance-specific accounting guidance. It lists the Topic's Subtopics (acquisition costs, claim costs and liabilities for future policy benefits, policyholder dividends, premium deficiency, separate accounts, and the statement/disclosure subtopics) and identifies the four contract-type Subsections used throughout: short-duration, long-duration, reinsurance, and financial guarantee insurance contracts. The guidance is incremental industry-specific guidance—entities in scope must still apply all other applicable GAAP.","key_points":["The Topic provides guidance on financial accounting and reporting by insurance entities and is organized into Subtopics including Insurance Activities, Acquisition Costs, Claim Costs and Liabilities for Future Policy Benefits, Policyholder Dividends, Premium Deficiency and Loss Recognition, and Separate Accounts (944-10-05-1).","Guidance applying only to a specific type of contract is presented in four Subsections: Short-Duration Contracts, Long-Duration Contracts, Reinsurance Contracts, and Financial Guarantee Insurance Contracts (944-10-05-2).","The Subtopics provide only incremental industry-specific guidance; entities in scope must also comply with applicable guidance outside this Topic (944-10-15-1).","Scope covers life and health insurers (stock and mutual) and property and liability (property and casualty) insurers (stock and mutual) (944-10-15-2(a)-(b)).","Scope also reaches title, assessment, mortgage guaranty, financial guaranty, and captive insurance entities, fraternal benefit societies, syndicates, reinsurance entities, and reciprocal or interinsurance exchanges (944-10-15-2(c)-(l)).","Pools are within scope except public-entity risk pools, which are excluded (944-10-15-2(h)).","Former subparagraphs 944-10-05-1(l) and (m) were superseded by ASU 2016-01, and the transition paragraph 944-10-65-1 was superseded after the ASU 2010-26 transition period ended."],"categories":["Industry-specific","Recognition","Presentation"],"audience_level":"introductory","student_note":"This is the gateway subtopic: before applying any insurance accounting rule, confirm the entity is in scope and identify whether the contract is short-duration or long-duration, because that classification drives premium recognition, liability measurement, and acquisition cost accounting. A common misunderstanding is treating ASC 944 as a self-contained framework—it is only incremental guidance, so ordinary GAAP (e.g., financial instruments, income taxes) still applies.","related_topics":["944-20","944-30","944-40","944-60","944-80","944-805"],"key_concepts":["insurance entity","incremental industry-specific guidance","short-duration contracts","long-duration contracts","reinsurance contracts","financial guarantee insurance contracts","scope of insurance accounting","captive and reciprocal insurers"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3c09f95b8ebf146f0ad7c996ad806fc703d4c3a831db7644df0264c98917d81","downloaded_from":"2026-09-10T02:14:24.052Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"235-944","title":"Financial Services—Insurance","topic_title":"Notes to Financial Statements","score":0.8751,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a088187f59163350f138e0e665a349ccb8ca0910a6344c62403efa2403530a9","downloaded_from":"2026-09-09T23:16:09.715Z","last_downloaded_at":"2026-09-09T23:16:20.080Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"220-944","title":"Financial Services—Insurance","topic_title":"Income Statement—Reporting Comprehensive 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timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48fbd38252723d45deac430453a144415eafce2fc4d4565e0bbcb12a219d898b","downloaded_from":"2026-09-10T02:14:24.052Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-20","topic":"944","title":"Insurance Activities","area":"Industry","paragraphs":242,"summary":"ASC 944-20 sets the framework for insurance accounting based on the nature of the contract rather than the type of entity: contracts are classified at inception as short-duration (fixed short coverage period, insurer can cancel or reprice each period, 944-20-15-7) or long-duration (not subject to unilateral change, services rendered over an extended period, 944-20-15-10), with sub-models for traditional, universal life-type, participating, and financial guarantee contracts. It also defines when a contract with a reinsurer actually transfers insurance risk (significant insurance risk plus reasonable possibility of significant loss, 944-20-15-41) and prescribes recognition and with-and-without measurement for multiple-year retrospectively rated contracts. Contracts lacking indemnification or significant insurance risk are accounted for under the deposit method (340-30) or as investment contracts.","concepts":["short-duration contract","long-duration contract","universal life-type contract","investment contract","risk transfer","reinsurance","multiple-year retrospectively rated contract","financial guarantee insurance"],"categories":["Industry-specific","Recognition","Subsequent measurement","Contingencies and guarantees"],"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":"944-20-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Acquisition CostsAmendedAccounting Standards Update No. 2010-2610/13/2010
Contract PeriodAmendedAccounting Standards Update No. 2016-1912/14/2016
Dividends to PolicyholdersAddedAccounting Standards Update No. 2014-0603/14/2014
Enhanced-Crediting-Rate BonusAddedAccounting Standards Update No. 2014-0603/14/2014
Enhanced-Yield BonusSupersededAccounting Standards Update No. 2014-0603/14/2014
Guaranteed Minimum Income BenefitAmendedAccounting Standards Update No. 2018-1208/15/2018
Involuntary TerminationSupersededAccounting Standards Update No. 2014-0603/14/2014
Net Amount at Risk (Relating to Variable Annuity Contracts)SupersededAccounting Standards Update No. 2018-1208/15/2018
Reinsurance RecoverableAddedAccounting Standards Update No. 2016-1912/14/2016
Sales InducementsAmendedAccounting Standards Update No. 2014-0603/14/2014
TerminationAmendedAccounting Standards Update No. 2014-0603/14/2014
Voluntary TerminationSupersededAccounting Standards Update No. 2014-0603/14/2014
944-20-05-2AAmendedAccounting Standards Update No. 2016-1912/14/2016
944-20-05-23SupersededAccounting Standards Update No. 2018-1208/15/2018
944-20-05-32AmendedAccounting Standards Update No. 2014-0603/14/2014
944-20-10-3AmendedAccounting Standards Update No. 2018-1208/15/2018
944-20-15-1BAmendedAccounting Standards Update No. 2016-1912/14/2016
944-20-15-3AmendedAccounting Standards Update No. 2014-0603/14/2014
944-20-15-11AmendedAccounting Standards Update No. 2018-1208/15/2018
944-20-15-13AmendedAccounting Standards Update No. 2018-1208/15/2018
944-20-15-24AmendedAccounting Standards Update No. 2018-1208/15/2018
944-20-50-5AmendedAccounting Standards Update No. 2016-1912/14/2016
944-20-55-13AmendedAccounting Standards Update No. 2018-1208/15/2018
944-20-55-14AmendedAccounting Standards Update No. 2018-1208/15/2018
944-20-55-15 through 55-26
SupersededAccounting Standards Update No. 2018-1208/15/2018
944-20-55-37AmendedAccounting Standards Update No. 2016-1306/16/2016
944-20-65-1AmendedAccounting Standards Update No. 2009-0207/01/2009
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nAcquisition Costs | Amended | Accounting Standards Update No. 2010-26 | 10/13/2010 |\nCon…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac9d11219395053a6a79fe315e69970e4f8a1231b13437fe6c5459662080d39e","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:14:58.695Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480146","source_sha256":"5180d7a2463f103e107222a9a359891833c2a377d0ce2090d0301996169dd10a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc997ad54d017eb71f8197ad22a182fafe1d8e2e1a667a84f3889443f504340e","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:14:58.695Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480146","source_sha256":"5180d7a2463f103e107222a9a359891833c2a377d0ce2090d0301996169dd10a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ea86c8d4d7dbc8ee4f89ea515511f108c5eb9fc04856b3c5fc90152b2c5d669","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:14:58.695Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480146","source_sha256":"5180d7a2463f103e107222a9a359891833c2a377d0ce2090d0301996169dd10a"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-20-05-1","para":"05-1","html":"
The Financial Services—Insurance Topic contains the following Subtopics unique to the accounting for and financial reporting of insurance activities and insurance contracts:
  1. a
    Insurance Activities
  2. b
    Acquisition Costs
  3. c
    Claim Costs and Liabilities for Future Policy Benefits
  4. d
    Policyholder Dividends
  5. e
    Separate Accounts.
","snippet":"The Financial Services—Insurance Topic contains the following Subtopics unique to the accounting for and financial reporting of insurance activities and insurance contracts:\n(a) Insurance Activities\n(b) Acquisition Costs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec38065e14af20038813ae6f4c42a4a330e6a269772e1d67f3e79d125146f56c","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-2","para":"05-2","html":"
This Subtopic provides a description of insurance activities and insurance contracts, provides guidance on accounting for multi-year retrospectively rated contracts, and contains other overarching industry-specific content.
","snippet":"This Subtopic provides a description of insurance activities and insurance contracts, provides guidance on accounting for multi-year retrospectively rated contracts, and contains other overarching industry-specific conte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dc7fda123141bccb8a63d4cb5b8c8cbfcbef2988a2293a80328dd7a9d4028ff","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-2A","para":"05-2A","html":"
In some cases an insurance contract or reinsurance contract does not transfer insurance risk. In those cases, Subtopic 340-30 provides guidance on applying the deposit method of accounting.
","snippet":"In some cases an insurance contract or reinsurance contract does not transfer insurance risk. In those cases, Subtopic 340-30 provides guidance on applying the deposit method of accounting.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a051af3c4726eb3cf239d74f7d348827042dfb9487072830f42733efe3231726","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-3","para":"05-3","html":"
Four methods of premium revenue and contract liability recognition for insurance contracts have developed: short-duration contract accounting and three methods of long-duration contract accounting—Traditional, Universal Life, and Participating Contracts. Generally, the four methods reflect the nature of the insurance entity's obligations and policyholder rights under the provisions of the contract.
","snippet":"Four methods of premium revenue and contract liability recognition for insurance contracts have developed: short-duration contract accounting and three methods of long-duration contract accounting—Traditional, Universal …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72ac13e476311707ea4740ba961719c369b7039c30b045b9ad37995b41b18a1c","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-3A","para":"05-3A","html":"
The accounting model for financial guarantee insurance contracts incorporates attributes of both the short-duration and the long-duration models. Financial guarantee insurance contracts provide insurance protection to the holder of the insured financial obligation. Therefore, premium revenue recognition issues are addressed in the context of the short-duration insurance accounting model. The claim liability recognition and measurement approach for financial guarantee insurance contracts incorporates aspects of the long-duration insurance accounting model.
","snippet":"The accounting model for financial guarantee insurance contracts incorporates attributes of both the short-duration and the long-duration models. Financial guarantee insurance contracts provide insurance protection to th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f5aae177bdd46b1f603c12d9d7cf5259ea2eaa3898309fd5a913c46e86508d4","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-4","para":"05-4","html":"
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":"The guidance in this Subtopic is presented in the following five Subsections:\n(a) General\n(b) Short-Duration Contracts\n(c) Long-Duration Contracts\n(d) Reinsurance Contracts\n(e) Financial Guarantee Insurance Contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8737c662043e376da072f1f67a3b3c2c8a3a7a894328a2187ffec8ee965ced83","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2733e47a252f21862fee74ec7994da2c0450de752ee3b48da40a89cd1ab876a","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":null,"heading":"Insurance Contracts","paragraphs":[{"citation":"944-20-05-5","para":"05-5","html":"
The primary purpose of insurance is to provide economic protection from identified risks occurring or discovered within a specified period.
","snippet":"The primary purpose of insurance is to provide economic protection from identified risks occurring or discovered within a specified period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b3f04fa95a56655dffdf61117558d258bd347b0f509cffcbe1aa2510338da9c","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-6","para":"05-6","html":"
Insurance transactions may be characterized generally by both of the following:
  1. a
    The purchaser of an insurance contract makes an initial payment or deposit to the insurance entity in advance of the possible occurrence or discovery of an insured event.
  2. b
    When the insurance contract is made, the insurance entity ordinarily does not know if, how much, or when amounts will be paid under the contract.
","snippet":"Insurance transactions may be characterized generally by both of the following:\n(a) The purchaser of an insurance contract makes an initial payment or deposit to the insurance entity in advance of the possible occurrence…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6db376133201932661a38a2f86896644056d74e35e14d9905c282755864e4898","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-7","para":"05-7","html":"
Examples of insured events include all of the following:
  1. a
    The death or disability of the insured
  2. b
    The maturity of an endowment
  3. c
    The incurrence of hospital or medical bills
  4. d
    The destruction or damage of property and related deaths or injuries
  5. e
    Defects in, liens on, or challenges to the title to real estate
  6. f
    The occurrence of a surety loss
  7. g
    Business interruption.
","snippet":"Examples of insured events include all of the following:\n(a) The death or disability of the insured\n(b) The maturity of an endowment\n(c) The incurrence of hospital or medical bills\n(d) The destruction or damage of proper…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cbec0d3ff2967bb6733754efa7241f94f02532243992902ed4f3b2f5e2d1816e","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f0e7429ce00854a2c6db7e3dfd00c7f29bcbde52cac93bfa538666e1dcd24b56","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":null,"heading":"Statutory Accounting Practices","paragraphs":[{"citation":"944-20-05-8","para":"05-8","html":"
The insurance laws and regulations of most states require insurance entities domiciled in those states to comply with the guidance provided in the National Association of Insurance Commissioners' Accounting Practices and Procedures Manual, except as prescribed or permitted by state law.
","snippet":"The insurance laws and regulations of most states require insurance entities domiciled in those states to comply with the guidance provided in the National Association of Insurance Commissioners' Accounting Practices and…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7050d5b6a25a0cbef98d3ea71eab6de40ac544b8bfed9e34a526feac9330e3e5","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-9","para":"05-9","html":"
Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance entities domiciled in a particular state. A state may adopt the revised Accounting Practices and Procedures Manual in whole, or in part, as an element of prescribed statutory accounting practices. If, however, the requirements of state laws, regulations, and administrative rules differ from the guidance provided in the revised Accounting Practices and Procedures Manual or subsequent revisions, those state laws, regulations, and administrative rules will take precedence.
","snippet":"Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance entities domiciled in …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9c3d9be2976a3a6fc07cdd7ec4e2bd938b6fb6b2b36284f9c7d3b02471ad9dda","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-10","para":"05-10","html":"
Permitted statutory accounting practices include practices not prescribed by the domiciliary state as described in the preceding paragraph, but allowed by the domiciliary state regulatory authority. An insurance entity may request permission from the domiciliary state regulatory authority to use a specific accounting practice in the preparation of the entity's statutory financial statements in either of the following circumstances:
  1. a
    If it wishes to depart from the prescribed statutory accounting practices
  2. b
    If prescribed statutory accounting practices do not address the accounting for the transaction.
Accordingly, permitted accounting practices differ from state to state, may differ from entity to entity within a state, and may change in the future.
","snippet":"Permitted statutory accounting practices include practices not prescribed by the domiciliary state as described in the preceding paragraph, but allowed by the domiciliary state regulatory authority. An insurance entity m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98392b4c57c61d948d5c5b2067a3a45583cd35eeae24b7a45fba284d83147165","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-11","para":"05-11","html":"
Subtopic 944-505 provides guidance to insurance entities on disclosure about statutory accounting practices.
","snippet":"Subtopic 944-505 provides guidance to insurance entities on disclosure about statutory accounting practices.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:828561af9b4d860f58837136aa3add5189aff79d63c6b76f3c1c41e7c283f4ab","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45f4e07b765ac1cdecd2aa774b2d58918d067046ae1c10eb03014bd23f00a211","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Short-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-20-05-12","para":"05-12","html":"
The Short-Duration Contracts Subsections provide guidance on accounting for and financial reporting of short-duration insurance contracts.
","snippet":"The Short-Duration Contracts Subsections provide guidance on accounting for and financial reporting of short-duration insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:050cc82f21dc9348ec4dc8abe56eae9e01d26a4f381a1d781d3c2f983069e3bc","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-13","para":"05-13","html":"
Premiums from short-duration insurance contracts, such as most property and liability insurance contracts, are intended to cover expected claim costs resulting from insured events that occur during a fixed period of short duration. The insurance entity ordinarily has the ability to cancel the contract or to revise the premium at the beginning of each contract period to cover future insured events.
","snippet":"Premiums from short-duration insurance contracts, such as most property and liability insurance contracts, are intended to cover expected claim costs resulting from insured events that occur during a fixed period of shor…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62cfefcc6cebb96dc8d676fb332e127f2d70115c30d6058075dab9d1cb39dd41","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4b0d7abf74adaeb909dd9c9d1c2e8548eca48035438b2c99bb578cabc7e77807","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-20-05-14","para":"05-14","html":"
The Long-Duration Contracts Subsections provide guidance on accounting for and financial reporting of long-duration insurance contracts. This section is organized as follows:
  1. a
    Traditional fixed and variable annuity and life insurance contracts
  2. b
    Universal life-type contracts
  3. c
    Nontraditional fixed and variable annuity and life insurance contracts
  4. d
    Participating life insurance contracts
  5. e
    Group participating pension contracts.
","snippet":"The Long-Duration Contracts Subsections provide guidance on accounting for and financial reporting of long-duration insurance contracts. This section is organized as follows:\n(a) Traditional fixed and variable annuity an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:301fd2ab463d2f53b2221815c021f124f89fd4bbbe252a112efd2020e23c6d42","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6adf6a3485c25d590256354bdee646746667a458eb861b9d6065272f746ca0af","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Long-Duration Contracts","heading":"Traditional Fixed and Variable Annuity and Life Insurance Contracts","paragraphs":[{"citation":"944-20-05-15","para":"05-15","html":"
Traditional fixed annuity and life insurance contracts, typically offered through an insurance entity's general account, provide for a fixed rate of interest over some specified period, with the insurance entity bearing the investment risk associated with the invested assets.
","snippet":"Traditional fixed annuity and life insurance contracts, typically offered through an insurance entity's general account,  provide for a fixed rate of interest over some specified period, with the insurance entity bearing…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:164f1d5c90a2ca50a2d5752d6066de5de5aa173ec50092beb56aff6ccda86386","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-16","para":"05-16","html":"
Traditional variable annuity and variable life insurance contracts, by contrast, offered through an insurance entity's separate account, provide that all investment risks associated with the separate account assets are passed through to the contract holder, with no guarantees of return of principal, minimum crediting rates, or (for annuity contracts) minimum death benefits.
","snippet":"Traditional variable annuity and variable life insurance contracts, by contrast, offered through an insurance entity's separate account, provide that all investment risks associated with the separate account assets are p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a30905cad3998fe63c74b5101d1f766249bd11bce548e3f4febc40401bdbe6c","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-17","para":"05-17","html":"
For example, in a traditional variable annuity, the contract holder directs the allocation of the account value among various investment alternatives and bears the investment risk. The units may be surrendered for their current value in cash (usually less a surrender charge) or applied to purchase annuity income. The insurance entity periodically deducts mortality and expense charges from the account.
","snippet":"For example, in a traditional variable annuity, the contract holder directs the allocation of the account value among various investment alternatives and bears the investment risk. The units may be surrendered for their …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:096c10511a5ee4c78b635c545cc87af8e0f2b3b36f6bec7750879e91016c5f65","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-18","para":"05-18","html":"
A traditional variable annuity product structure, as that term is used in this Subtopic, includes the following attributes:
  1. a
    The policyholder's payments, after deduction of specified sales and administrative charges, are used to purchase units of a separate investment account (a separate account).
  2. b
    The policyholder directs the allocation of the account value among various investment options (typically various mutual funds). The policyholder bears the investment risk (that is, the account value is based entirely on the performance of the directed investments).
  3. c
    The units may be surrendered for their current value in cash, although there is often a small surrender charge, or the units may be applied to purchase annuity income.
  4. d
    The insurer guarantees mortality and maximum expense charges, and amounts are deducted periodically from the separate account to cover these charges.
  5. e
    Deferred annuity contracts typically provide a death benefit during the accumulation period under which the policyholder may receive the greater of the sum of premiums paid or the value of total units to the credit of the account at time of the policyholder's death.
","snippet":"A traditional variable annuity product structure, as that term is used in this Subtopic, includes the following attributes:\n(a) The policyholder's payments, after deduction of specified sales and administrative charges, …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dea4475ce565392f1492a2d6dbb213d7b7e97c23355543b43f2a449a306c4338","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-19","para":"05-19","html":"
Premiums from long-duration insurance contracts, including many life insurance contracts, generally are level even though the expected policy benefits and services do not occur evenly over the periods of the contracts. Functions and services provided by the insurer include insurance protection, sales, premium collection, claim payment, investment, and other services. No single function or service is predominant over the periods of most types of long-duration contracts. Premium revenue from long-duration contracts generally exceeds expected policy benefits in the early years of the contracts.
","snippet":"Premiums from long-duration insurance contracts, including many life insurance contracts, generally are level even though the expected policy benefits and services do not occur evenly over the periods of the contracts. F…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe3b09a1a52c68be22e2329538dd148caf395134e1587d9fa9aa9cd444168699","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ad77a8136d5d5f870832d5d26eefffebf6e9cbf16591cff00f4e599f14d55d69","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Long-Duration Contracts","heading":"Limited-Pay Insurance Contracts","paragraphs":[{"citation":"944-20-05-19A","para":"05-19A","html":"
Some long-duration insurance contracts have terms that are fixed and guaranteed but lack either level premiums (as discussed in paragraph 944-20-05-19) or insurance protection characteristics.
","snippet":"Some long-duration insurance contracts have terms that are fixed and guaranteed but lack either level premiums (as discussed in paragraph 944-20-05-19) or insurance protection characteristics.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7963168f24552fe2fcdb23edd950d8d8b2f6636dd8a1e87f90c09d6c6b8cfba","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cedfe1d0c003c6e6c1b8ae154248b2555abe1dfa0403e795277ca3a1aa335f6b","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Long-Duration Contracts","heading":"Universal Life-Type Contracts","paragraphs":[{"citation":"944-20-05-20","para":"05-20","html":"
The differences between universal life-type insurance contracts and other long-duration contracts is that universal life-type insurance contracts lack the fixed and guaranteed terms that are typical for other long-duration contracts. Policyholders are frequently granted significant discretion over the amount and timing of premium payments. Insurers are frequently granted significant discretion over amounts that accrue to and that are assessed against policyholders.
","snippet":"The differences between universal life-type insurance contracts and other long-duration contracts is that universal life-type insurance contracts lack the fixed and guaranteed terms that are typical for other long-durati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dea583be9501086caee305fba432bedffa529d8a98be7595b3fca8d026a8c81e","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-21","para":"05-21","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:604a75220917f6d444b455e025596ab6dc2b87c0b7eaca62f0ec7b71bd73944b","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a02dca1f1dd0598cfc43fff1c711ace8eea7243c02c3a09e0d68c0b1332c400d","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Long-Duration Contracts","heading":"Nontraditional Fixed and Variable Annuity and Life Insurance Contracts","paragraphs":[{"citation":"944-20-05-22","para":"05-22","html":"
Annuity and life products with nontraditional terms may combine fixed and variable features and are sold as general account or separate account products. The features of such contracts are many and complex, and may be offered in different combinations, such that there are numerous variations of the same basic products being sold in the marketplace.
","snippet":"Annuity and life products with nontraditional terms may combine fixed and variable features and are sold as general account or separate account products. The features of such contracts are many and complex, and may be of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d22f57a1eb23ad7b8c4f61d63f0735ec8e3e63ef52af154543696c1e53f3cf6d","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-23","para":"05-23","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":"sha256:6c9aa6aba79d38809d1ac83d04e88e86a37930659384ecbf624b36f1b3fafe16","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-24","para":"05-24","html":"
Insurance entities have developed a wide range of variable annuity contracts with nontraditional features. Nontraditional features of traditional variable annuity contracts result in a sharing of investment risk between the issuer and the holder. Nontraditional variable annuity contracts provide for some sort of minimum guarantee of the account value at a specified date. This minimum guarantee may be guaranteed through a minimum accumulation benefit or a guaranteed account value floor. For example, the floor guarantee might be that, at a specified anniversary date, the contract holder will be credited with the greater of the following:
  1. a
    The account value, as determined by the separate account assets
  2. b
    All deposits that are made, plus 3 percent interest compounded annually.
","snippet":"Insurance entities have developed a wide range of variable annuity contracts with nontraditional features. Nontraditional features of traditional variable annuity contracts result in a sharing of investment risk between …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ffa0302bebc380060b1e24b629dd18244d1c28b15d6e69be4efa81535711ce7","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-25","para":"05-25","html":"
While these nontraditional variable annuity contracts have distinguishing features, they possess a common characteristic: the investment risk associated with the assets backing the contract is shared by the issuer and the policyholder. That is, in contrast to traditional variable annuity contracts, the investment risk is, by virtue of the nontraditional product features, allocated between the two parties and not borne entirely by only one of the parties (the holder in the case of a traditional variable annuity contract).
","snippet":"While these nontraditional variable annuity contracts have distinguishing features, they possess a common characteristic: the investment risk associated with the assets backing the contract is shared by the issuer and th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1920138689d1c5ca480780f2f8fef6ed2ae2a7b58f7489f6c0c49cebf3e8bbb","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-26","para":"05-26","html":"
Variable annuity contracts and variable life insurance contracts provide the contract holder with a number of investment alternatives. Many of those investment alternatives will be separate account funds, such as equity, aggressive equity, high-grade corporate bond, mortgage loan, real estate, and similar funds. Other investment alternatives could include guaranteed investment options and market value adjusted separate accounts as well as a general account fixed interest rate option.
","snippet":"Variable annuity contracts and variable life insurance contracts provide the contract holder with a number of investment alternatives. Many of those investment alternatives will be separate account funds, such as equity,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f0746fdb62b0d385070d0d2739b38872f4e61a77651960566c9ae217fc45eff","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-27","para":"05-27","html":"
The remainder of this guidance addresses the following annuity contracts and features:
  1. a
    Market value annuities
  2. b
    Minimum guaranteed death benefit
  3. c
    Minimum guaranteed income benefit
  4. d
    No-lapse guarantee
  5. e
    Sales inducements to contract holders
  6. f
    Other features.
","snippet":"The remainder of this guidance addresses the following annuity contracts and features:\n(a) Market value annuities\n(b) Minimum guaranteed death benefit\n(c) Minimum guaranteed income benefit\n(d) No-lapse guarantee\n(e) Sale…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b89fd3f8cff38cf7bed4d293d2ff3a7f2d9ae2f60338a0ee2d5ef91e0ed1c817","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-28","para":"05-28","html":"
A market value annuity provides for a return of principal plus a fixed rate of return if held to maturity (book value), or, alternatively, a market-adjusted value if surrendered before maturity. The product is also sometimes referred to as a market value adjusted annuity or a modified guaranteed annuity. The product typically provides for a single premium that may be invested for a specified term, with typical terms of 1 to 10 years. A fixed interest rate is specified in the contract based on the term selected. The contract contains surrender values that are based on a market value adjustment formula if held for shorter periods. The formula typically is based on current crediting rates being offered for new market value annuity purchases with terms equal to the remaining term to maturity. The market value adjustment may be positive or negative, depending on crediting rates at surrender.
","snippet":"A market value annuity provides for a return of principal plus a fixed rate of return if held to maturity (book value), or, alternatively, a market-adjusted value if surrendered before maturity. The product is also somet…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aead9dfa8be2e895eb95e9f1070add235d92112761a9180157618354c2ca0273","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-29","para":"05-29","html":"
A common feature in variable annuities is a minimum guaranteed death benefit, such as a return of premium death benefit or basic minimum guaranteed death benefit. Although the return-of-premium minimum guaranteed death benefit has become increasingly common in variable annuities, the trend has been for insurers to offer minimum guaranteed death benefits with more extensive benefit guarantees, such as any of the following:
  1. a
    Roll-up death benefit. A death benefit equal to the total of deposits made to the contract less an adjustment for partial withdrawals, accumulated at a specified interest rate.
  2. b
    Reset death benefit. A death benefit equal to the account balance on a specified anniversary date adjusted for deposits less partial withdrawals since the specified anniversary date.
  3. c
    Ratchet death benefit. A death benefit equal to the highest account balance among prior specified anniversary dates adjusted for deposits less partial withdrawals since the specified anniversary date.
","snippet":"A common feature in variable annuities is a minimum guaranteed death benefit, such as a return of premium death benefit or basic minimum guaranteed death benefit. Although the return-of-premium minimum guaranteed death b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:99eb926171937fb98d2d412c08282bdec88b36a819a579961f222ef46315ac2e","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-30","para":"05-30","html":"
Some annuities may provide for potential benefits in addition to the account balance, payable only if annuitization is elected. For example, some deferred variable annuities provide that, regardless of separate account performance, a guaranteed minimum amount is available to annuitize after a specified period, thereby providing a guaranteed minimum income benefit if the contract holder elects to annuitize. This benefit is in addition to the guaranteed minimum annuity interest rate traditionally offered.
","snippet":"Some annuities may provide for potential benefits in addition to the account balance, payable only if annuitization is elected. For example, some deferred variable annuities provide that, regardless of separate account p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4bac908a9c3e3bfebed7f524705492de8a5d5caede6855cf9f1d2d148240ab6","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-31","para":"05-31","html":"
Another insurance benefit feature is a no-lapse guarantee, in which the insurance entity agrees to keep the insurance policy in force even if the account balance is not sufficient to pay the cost of insurance.
","snippet":"Another insurance benefit feature is a no-lapse guarantee, in which the insurance entity agrees to keep the insurance policy in force even if the account balance is not sufficient to pay the cost of insurance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6de4a6482cfa6224f7a7570d032ee9b18333be492a8dc0c9bbd34fbdb897beaf","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-32","para":"05-32","html":"
Sales inducements to contract holders may be offered with fixed and variable life insurance and annuity contracts. Sales inducements to contract holders typically can be characterized as one of the following types:
  1. a
    Immediate bonuses. In the case of the 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. The contract holder account balance is increased for the full amount of the immediate bonus on the date that the bonus is contractually granted.
  2. b
    Persistency bonuses. 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.
  3. c
    Enhanced-crediting-rate bonuses. In an enhanced crediting rate sales inducement, 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. Pursuant to the contract, the enhanced crediting rate is applicable for a limited period of time, after which the rate is reset under the contractual provisions, typically at the discretion of the insurance entity.
","snippet":"Sales inducements to contract holders may be offered with fixed and variable life insurance and annuity contracts. Sales inducements to contract holders typically can be characterized as one of the following types:\n(a) I…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e388c048173d40609e4ad7967229b193d438d9260b399541149d8e6dcd59f3a","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-33","para":"05-33","html":"
A deferred annuity may provide multiple crediting rates throughout the life of the contract depending on whether the contract holder elects to terminate or annuitize the contract. An example is a contract that applies a lower rate to funds deposited if the contract holder elects to surrender the contract for cash, and a higher rate if the contract holder elects to annuitize, often referred to as a two-tier annuity.
","snippet":"A deferred annuity may provide multiple crediting rates throughout the life of the contract depending on whether the contract holder elects to terminate or annuitize the contract. An example is a contract that applies a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4d38ca877550a5e842e9e09177013a13ff09d509123bbc320fe2a756fd1906c","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-34","para":"05-34","html":"
Contracts also exist that potentially may be viewed as providing multiple account balances; for example, 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":"Contracts also exist that potentially may be viewed as providing multiple account balances; for example, a contract that provides a return based on a contractually referenced pool of real estate assets owned by the insur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b9da615915ff22363789691c3b08037981deefe23ef2e0fc5df9de92e2bbee0","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-35","para":"05-35","html":"
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Mutual life insurance entities primarily issue participating life insurance contracts. Those contracts provide policyholders with certain guaranteed benefits and allow policyholders to share in the experience of the entity through dividends. Dividends are paid periodically and generally reflect the experience and performance of the entity for investment activity, mortality experience, and contract administration for each particular class of contracts. The determination and distribution of dividends distinguish participating life insurance contracts from nonparticipating life insurance contracts.
","snippet":"Mutual life insurance entities primarily issue participating life insurance contracts. Those contracts provide policyholders with certain guaranteed benefits and allow policyholders to share in the experience of the enti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a84e548c48aabe5e8538cbf52f91371b020960aa27f194d3180b36e932ac7039","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1636c8f12eac2c35201bbc14cefb1362928457ec674a28129d018766aee61d01","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Long-Duration Contracts","heading":"Group Participating Pension Contracts","paragraphs":[{"citation":"944-20-05-37","para":"05-37","html":"
Group participating pension contracts between insurance entities and pension plans have account balance crediting provisions that give the contract holder the total return based on a referenced pool of assets over the life of the contract either through crediting rates or termination adjustments. The ongoing crediting to the account balance may be based on statutory, cash basis, or book value returns. The contracts may not have a maturity date but specify that upon surrender any remaining return on the referenced pool of assets on the termination date not yet credited will be a termination adjustment. The referenced pool of assets may include mortgage loans, real estate, and equity and debt securities.
","snippet":"Group participating pension contracts between insurance entities and pension plans have account balance crediting provisions that give the contract holder the total return based on a referenced pool of assets over the li…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bb0698959dbf3970181e9c25a5e404d7bb6ba034ba11b903a75ddbce68c638d","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce56d01f5d9f1d4c4d8953881daa94b58c096434fcbb7662c6a20168d8ddea28","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-20-05-38","para":"05-38","html":"
The Reinsurance Contracts Subsections provide guidance on accounting for and financial reporting of reinsurance contracts, including those that reinsure short-duration insurance contracts and long-duration insurance contracts.
","snippet":"The Reinsurance Contracts Subsections provide guidance on accounting for and financial reporting of reinsurance contracts, including those that reinsure short-duration insurance contracts and long-duration insurance cont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2029e30dda00542aa60b49395a2d4184ecdde70c496a5e18576548ce60e0e5b3","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-39","para":"05-39","html":"
Insurers may enter into various types of contracts described as reinsurance, including those commonly referred to as fronting arrangements.
","snippet":"Insurers may enter into various types of contracts described as reinsurance, including those commonly referred to as fronting arrangements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41cdc8da04894e8c24f4e44ce56f4e0b0b9b5651cd2d42a9a9016de82acc2532","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-39A","para":"05-39A","html":"
An insurance entity may purchase reinsurance to reduce exposure to losses from the events it has agreed to insure, similar to a direct insurance contract purchased by an individual or noninsurance entity. The insurance entity also may contract with a reinsurer to facilitate the writing of contracts larger than those normally accepted, to obtain or provide assistance in entering new types of business, or to accomplish tax or regulatory objectives.
","snippet":"An insurance entity may purchase reinsurance to reduce exposure to losses from the events it has agreed to insure, similar to a direct insurance contract purchased by an individual or noninsurance entity. The insurance e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b9331e75847d3cdaa69fd15d575cb91fb630a25194d2017d44ad507d5827125","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-40","para":"05-40","html":"
Insurance provides indemnification against loss or liability from specified events and circumstances that may occur or be discovered during a specified period. In exchange for a payment from the policyholder, an insurance entity agrees to pay the policyholder if specified events occur or are discovered. Similarly, the insurance entity may obtain indemnification against claims associated with contracts it has written by entering into a reinsurance contract with another insurance entity (the reinsurer or assuming entity). The insurer (or ceding entity) pays (cedes) an amount to the reinsurer, and the reinsurer agrees to reimburse the insurer for a specified portion of claims paid under the reinsured contracts. However, the policyholder usually is unaware of the reinsurance arrangement, and the insurer ordinarily is not relieved of its obligation to the policyholder. The reinsurer may, in turn, enter into reinsurance contracts with other reinsurers, a process known as retrocession.
","snippet":"Insurance provides indemnification against loss or liability from specified events and circumstances that may occur or be discovered during a specified period. In exchange for a payment from the policyholder, an insuranc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f43e93b234a89ff54f7865792e6dee15f4026529e2af62cac74b4bf9eac8b69","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9d05a0990c19f6e66e4a7265d57bfe4dd08444137272d1bf7daecb415ac80c7","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Reinsurance Contract","paragraphs":[{"citation":"944-20-05-41","para":"05-41","html":"
Many short-duration insurance and reinsurance contracts have retrospective rating provisions. A retrospectively rated contract is a multiple-year contract in which events in one period of the contract create rights and obligations in another. For example, if losses above a certain level occur in one contract year, premiums increase in future years unless the ceding entity compensates the reinsurer through a settlement adjustment. The ceding entity has an obligation because it must pay either the settlement adjustment or the higher future premiums.
","snippet":"Many short-duration insurance and reinsurance contracts have retrospective rating provisions. A retrospectively rated contract is a multiple-year contract in which events in one period of the contract create rights and o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63ded72f09a435693f535a2403fe5d3f9cf0d402fbc0c52250c9bdd25906f19f","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-42","para":"05-42","html":"
An insurer (ceding entity) may enter into a multiple-year retrospectively rated reinsurance contract with a reinsurer (assuming entity). Examples of these contracts may include transactions referred to as funded catastrophe covers. These contracts include a retrospective rating provision that provides for at least one of the following based on contract experience:
  1. a
    Changes in the amount or timing of future contractual cash flows, including premium adjustments, settlement adjustments, or refunds to the ceding entity
  2. b
    Changes in the contract's future coverage.
","snippet":"An insurer (ceding entity) may enter into a multiple-year retrospectively rated reinsurance contract with a reinsurer (assuming entity). Examples of these contracts may include transactions referred to as funded catastro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:12887aed0ef20ce3f2ff94d36fce37a1155aac44bf461e1797866e1a55dcf521","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-43","para":"05-43","html":"
A critical distinguishing feature of these contracts is that part or all of the retrospective rating provision is obligatory such that the retrospective rating provision creates future rights and obligations as a result of past events. Therefore, a retrospectively rated contract that could be cancelled without further obligation (because it does not create rights and obligations that will be realized in a future period) is excluded.
","snippet":"A critical distinguishing feature of these contracts is that part or all of the retrospective rating provision is obligatory such that the retrospective rating provision creates future rights and obligations as a result …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c6e2f896d963ae21c39b17ed212690e40f76e8ccbd45256d61947485ace8de4","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e8a962845c7d95cef4c180e0e0913250bfbee74ed32e54a7a737841a4005c5d","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-20-05-44","para":"05-44","html":"
The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance on accounting for and financial reporting of financial guarantee insurance contracts and financial guarantee reinsurance contracts. Examples of such financial obligations include a municipal bond or an asset-backed security.
","snippet":"The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance on accounting for and financial reporting of 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:e708085962b8ab555c768d98e0ea6d5382adca09e78ff682506083905c46bc7e","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"citation":"944-20-05-45","para":"05-45","html":"
Although the direct or indirect beneficiary of the contract is the holder of the insured financial obligation, the holder of the financial guarantee insurance contract (policyholder) will vary. In some cases, the policyholder will be the issuer (for example, a municipality or a corporation) of the insured financial obligation because it is seeking to increase the marketability of the insured financial obligation while reducing future interest costs (by attaining a higher credit standing for the insured financial obligation through the financial guarantee insurance contract). In other cases, the policyholder will be both the holder of the insured financial obligation and beneficiary because it has purchased a financial obligation in the secondary market and seeks to protect itself from a financial loss in the event of a default.
","snippet":"Although the direct or indirect beneficiary of the contract is the holder of the insured financial obligation, the holder of the financial guarantee insurance contract (policyholder) will vary. In some cases, the policyh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44e7badf1975196832db14398a7fd108be62df4ba418ff471be99ce06d17f8ee","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:01fde278dec9a370b54541e3dac0c09362f3941777a85892d217da107dfb663f","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4860d9c34438feb71236db500c68aa62a660bec0301a2b70fc047f18462cded8","downloaded_from":"2026-09-10T02:15:01.505Z","last_downloaded_at":"2026-09-10T02:15:01.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480117","source_sha256":"3f22e0794dc5b4f14b7740954cc65fb7b3bb39170318d3c99512a72a734c0f11"}},{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-20-10-1","para":"10-1","html":"
This Subtopic establishes a framework for accounting by insurance entities based on the nature of insurance contracts rather than type of insurance entity.
","snippet":"This Subtopic establishes a framework for accounting by insurance entities based on the nature of insurance contracts rather than type of insurance entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ddc7827471389197bc3162dc6038c8d8c26936581ef363844128b2d81d31c2c0","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}},{"citation":"944-20-10-2","para":"10-2","html":"
Life insurance coverage encompasses the concepts of amounts at risk and the relative probability of mortality and morbidity events.
","snippet":"Life insurance coverage encompasses the concepts of amounts at risk and the relative probability of mortality and morbidity events.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5375270b19ab6e147950de867cea09185e2ff7b949cef6bd058a8e3f5bccef25","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}},{"citation":"944-20-10-3","para":"10-3","html":"
The insurance model does not override, nor is it inconsistent with, the basic recognition and measurement principles of Subtopic 450-20. Rather, the insurance model is a specialized application of those principles that estimates and allocates revenues and costs that have a future economic benefit over the period in which services are provided or received. For example, that Subtopic prohibits recognition of a loss unless it is probable that a loss has been incurred, and requires recognition of the full amount of a loss that has been incurred in the period of the loss. Likewise, paragraphs 944-40-25-32, 944-60-25-2, 944-60-25-9,
944-60-30-1 through 30-2
, and
944-60-35-3 through 35-5
require recognition of losses in the period the loss occurs.
","snippet":"The insurance model does not override, nor is it inconsistent with, the basic recognition and measurement principles of Subtopic 450-20. Rather, the insurance model is a specialized application of those principles that e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63ffa8ec89664925a4d4acd75b27906ce3f73b2002a053411eb6bd9b65f678f5","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aed1f4f5d0975d1990a9a02b6837626e9008e595bc0792009812e7a8a9978998","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}},{"block":"Reinsurance Contracts","heading":"Overall","paragraphs":[{"citation":"944-20-10-4","para":"10-4","html":"
A principal objective of the Reinsurance Contracts Subsections of this Subtopic is to account for an agreement with a reinsurer according to its substance. Difficulty in evaluating a contract under the Reinsurance Contracts Subsections of this Subtopic is an indication that the contract's form and substance may differ. For example, if complicated adjustable features or options are present in a contract, close analysis may be required to determine the effect of those contractual provisions on risk transfer.
","snippet":"A principal objective of the Reinsurance Contracts Subsections of this Subtopic is to account for an agreement with a reinsurer according to its substance. Difficulty in evaluating a contract under the Reinsurance Contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40a598138921f56e79a73facfe0f0d95bcebe3705b6c528bfe98b6a61e880a80","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a61577d589f4314b76a0080ddf02342f4a8237a001c3134c54a7ba076f1457d6","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}},{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Contracts","paragraphs":[{"citation":"944-20-10-5","para":"10-5","html":"
A retrospectively rated contract is a multiple-year contract in which events in one period of the contract create rights and obligations in another. The principal issues in accounting for a multiple-year retrospectively rated contract involve how to recognize and measure assets and liabilities resulting from the obligatory retrospective rating provisions. While it may be difficult for some types of retrospectively rated contracts to pass the risk transfer test, the recognition and measurement questions are present regardless of whether the contract transfers risk. In fact, the questions become clearly evident with contracts that meet the risk transfer test and are accounted for as reinsurance.
","snippet":"A retrospectively rated contract is a multiple-year contract in which events in one period of the contract create rights and obligations in another. The principal issues in accounting for a multiple-year retrospectively …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4206394b8a33f6d4a5d084d6b9baf2a2f1288a82a1a5e7c618b1c621d0de8b01","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecd56fd68a6a2d2cfc3382a056ed88c92d68f03d1aa490a561ee1fe8167223e6","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ae652847566b948252b4d33852a0ffeb946793338c504dfb5bc98f51a809459","downloaded_from":"2026-09-10T02:15:03.393Z","last_downloaded_at":"2026-09-10T02:15:03.393Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480086","source_sha256":"5cb369fc284edec4497709764b4203b953273968775e885dc8c4ec496431ac16"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"944-20-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15, with other considerations noted below.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15, with other considerations noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec98564ef16b0f8d0977ee0d927d863c519610b1afeccabb9471abdae671648d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b46a40b29677bfc2441b2c6889d116d6842ba0603a6f2543e6e2f8512d0bae29","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"944-20-15-1A","para":"15-1A","html":"
For instruments and transactions within its scope, the guidance in the Financial Guarantee Insurance Contracts Subsections take precedence to other guidance in this Subtopic.
","snippet":"For instruments and transactions within its scope, the guidance in the Financial Guarantee Insurance Contracts Subsections take precedence to other guidance in this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:77377e5b6c2af8361feb6cd414c0f7fe1cbf4a4b2173ee0d53e3ac39c491f56c","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-1B","para":"15-1B","html":"
Paragraph 720-20-25-1 states that, to the extent that an insurance contract or reinsurance contract does not, despite its form, provide for indemnification of the insured or the ceding entity by the issuer or reinsurer against loss or liability, the premium paid less the amount of the premium to be retained by the insurer or reinsurer shall be accounted for as a deposit by the insured or the ceding entity. See paragraph 340-30-05-1 for guidance on applying the deposit method of accounting. For guidance on long-duration contracts that do not incorporate significant insurance risk, see paragraph 944-20-15-14.
","snippet":"Paragraph 720-20-25-1 states that, to the extent that an insurance contract or reinsurance contract does not, despite its form, provide for indemnification of the insured or the ceding entity by the issuer or reinsurer a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed4ade5e9e2cba0c547c6e8c5446da9da2ed83a1508bd27e5a498e30cbbaa18e","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-2","para":"15-2","html":"
Insurance contracts, for purposes of this Subtopic, shall be classified as short-duration contracts (see paragraph 944-20-15-7) or long-duration contracts (see paragraph 944-20-15-10) depending on whether the contracts are expected to remain in force for an extended period.
","snippet":"Insurance contracts, for purposes of this Subtopic, shall be classified as short-duration contracts (see paragraph 944-20-15-7) or long-duration contracts (see paragraph 944-20-15-10) depending on whether the contracts a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59d4be6cf2571dc48119286e077071c2946386057ace7b4903af2f9bc2fdef62","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-3","para":"15-3","html":"
Certain guidance in the Long-Duration Subsections in this Subtopic (and other Subtopics within the Financial Services—Insurance Topic) applies only to certain long-duration participating life insurance contracts of mutual life insurance entities and certain stock life insurance entities. For purposes of that guidance:
  1. a
    Mutual life insurance entities include assessment entities, fraternal benefit societies, and stock life insurance subsidiaries of mutual life insurance entities.
  2. b
    Participating life insurance contracts denote those that have both of the following characteristics:
    1. 1
      They are long-duration participating contracts that are expected to pay dividends to policyholders based on actual experience of the insurance entity.
    2. 2
      Annual policyholder dividends are paid in a manner that both:
      1. a
        Identifies divisible surplus
      2. b
        Distributes that surplus in approximately the same proportion as the contracts are considered to have contributed to divisible surplus (commonly referred to in actuarial literature as the contribution principle).
","snippet":"Certain guidance in the Long-Duration Subsections in this Subtopic (and other Subtopics within the Financial Services—Insurance Topic) applies only to certain long-duration participating life insurance contracts of mutua…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fa7235cc130b6de23b89a177c020334f9797fa584df2314f7b3cf67254a0efb","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-4","para":"15-4","html":"
Paragraph 944-20-15-11 states that stock life insurance entities with participating life insurance contracts that meet certain conditions are permitted to account for those contracts in accordance with the Long-Duration Contracts Subsections of this Subtopic. That paragraph explains that the same accounting policy shall be applied consistently to all those participating life insurance contracts.
","snippet":"Paragraph 944-20-15-11 states that stock life insurance entities with participating life insurance contracts that meet certain conditions are permitted to account for those contracts in accordance with the Long-Duration …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3479de451f94a4c120d398c2e5817746708c6aca8daaeb00d57f844b7fc2ff27","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa95473782f065df8a7072d557e61c8e0927d2f3542c3004767a47fc49e1002c","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Short-Duration Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"944-20-15-5","para":"15-5","html":"
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 and exceptions noted below.
","snippet":"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 and exceptions noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:89ad6b1d8cc261fc0532599d5abc0bc6a9b1e6528a4ac81b35ae3789192bd1f0","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7a35f878ff0e8baed1496abdf20868fb43692af79389c0f819db7e589103f822","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Short-Duration Contracts","heading":"Instruments","paragraphs":[{"citation":"944-20-15-6","para":"15-6","html":"
The guidance in the Short-Duration Contracts Subsections of this Subtopic applies only to short-duration contracts.
","snippet":"The guidance in the Short-Duration Contracts Subsections of this Subtopic applies only to short-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7db8cae3840863b9b9a78715ed2f747a90869357feece465eeee870a7bc6253","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-7","para":"15-7","html":"
Paragraph 944-20-15-2 states that insurance contracts, for purposes of this Subtopic, shall be classified as short-duration contracts or long-duration contracts depending on whether the contracts are expected to remain in force for an extended period. The factors that shall be considered in determining whether a particular contract can be expected to remain in force for an extended period are as follows for a short-duration contract:
  1. a
    The contract provides insurance protection for a fixed period of short duration.
  2. b
    The contract enables the insurer to cancel the contract or to adjust the provisions of the contract at the end of any contract period, such as adjusting the amount of premiums charged or coverage provided.
","snippet":"Paragraph 944-20-15-2 states that insurance contracts, for purposes of this Subtopic, shall be classified as short-duration contracts or long-duration contracts depending on whether the contracts are expected to remain i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e7f18c24f1946af6698f01d4a01ff2634e8ffc97006cb23c0d9f2313c484de2","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45cb5e960a39d5573f43056ada50eeaa139bc06478004bcd05fac7f54d732e6d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Long-Duration Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"944-20-15-8","para":"15-8","html":"
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 and exceptions and other considerations noted below.
","snippet":"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 and exceptions and other considerations no…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03aba7343d536348297d84eb8f4e738da1e60aeae7c6d5bb83461d3a905cadff","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e07d9c74a47a8cbb7171a2eefda60adca6a64a7ad60f44c961717dab9c3a99f","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Long-Duration Contracts","heading":"Instruments","paragraphs":[{"citation":"944-20-15-9","para":"15-9","html":"
The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration contracts.
","snippet":"The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c93d77c9bacc622a3c49de38168e0bdb6fa3e842e3821edc875adeefcefa0f8","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-10","para":"15-10","html":"
Paragraph 944-20-15-2 states that insurance contracts, for purposes of this Subtopic, shall be classified as short-duration contracts or long-duration contracts depending on whether the contracts are expected to remain in force for an extended period. The factors that shall be considered in determining whether a particular contract can be expected to remain in force for an extended period are as follows for a long-duration contract:
  1. a
    The contract generally is not subject to unilateral changes in its provisions, such as a noncancelable or guaranteed renewable contract.
  2. b
    The contract requires the performance of various functions and services (including insurance protection) for an extended period.
","snippet":"Paragraph 944-20-15-2 states that insurance contracts, for purposes of this Subtopic, shall be classified as short-duration contracts or long-duration contracts depending on whether the contracts are expected to remain i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0650b1685ea9cff5b9d88518f5aa2880284dd019e7d3206a7feb52a784635b1c","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-11","para":"15-11","html":"
The guidance in the Long-Duration Contracts Subsections of this Subtopic applies, in part, to the following classes of long-duration contracts issued:
  1. a
    Universal life-type contracts, that is, long-duration insurance contracts with terms that are not fixed and guaranteed
  2. b
    Limited-payment contracts, including limited-payment participating and limited-payment nonguaranteed-premium contracts that are not, in substance, universal life-type contracts
  3. c
    Except as noted in paragraph 944-20-15-3, participating life insurance contracts
  4. d
    Whole-life contracts, that is, insurance contracts that may be kept in force for a person's entire life by paying one or more premiums
  5. e
    Term life insurance contracts, that is, insurance contracts that provide a benefit if the insured dies within the period specified in the contract.
Stock life insurance entities with participating life insurance contracts described in (c) are permitted to account for those contracts in accordance with the Long-Duration Contracts Subsections of this Subtopic. The same accounting policy shall be applied consistently to all those participating life insurance contracts.
","snippet":"The guidance in the Long-Duration Contracts Subsections of this Subtopic applies, in part, to the following classes of long-duration contracts issued:\n(a) Universal life-type contracts, that is, long-duration insurance c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a3260125d1ccf60b78bb05f8a1c30a31402662a9e787ab9d2169ac273836fef","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-12","para":"15-12","html":"
If insurance contracts have characteristics significant to the contracts cited in (a) or (b) of the preceding paragraph those contracts are within the scope of the Long-Duration Contracts Subsections of this Subtopic. For example, universal disability contracts that have many of the same characteristics as universal life-type contracts, with the exception of providing disability benefits instead of life insurance benefits, shall be accounted for in a manner consistent with universal life-type contracts.
","snippet":"If insurance contracts have characteristics significant to the contracts cited in (a) or (b) of the preceding paragraph those contracts are within the scope of the Long-Duration Contracts Subsections of this Subtopic. Fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:caa98e2ed1e838894f6e81d8fb0dc71ecb3b4ae32992010a37b51b1e062f014d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-13","para":"15-13","html":"
The Long-Duration Subsections of this Subtopic also apply to certain contracts or features not covered elsewhere in the Codification, including asset, liability, revenue, and expense recognition. Examples of such contracts or features include the following:
  1. a
    Contracts offered through an insurance entity's separate accounts
  2. b
    Variable annuities with a minimum guaranteed death benefit or a guaranteed minimum accumulation benefit
  3. c
    Variable annuities with a guaranteed minimum income benefit
  4. d
    Contracts providing multiple account balances
  5. e
    Contracts with sales inducements.
","snippet":"The Long-Duration Subsections of this Subtopic also apply to certain contracts or features not covered elsewhere in the Codification, including asset, liability, revenue, and expense recognition. Examples of such contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bed2401f33d6ef120b45b603251ad87f2131184a626d9ccbbae716df62986d63","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-14","para":"15-14","html":"
The guidance in the Long-Duration Subsections of this Subtopic does not apply to investment contracts issued by an insurance entity that do not incorporate significant insurance risk and shall not be accounted for as insurance contracts. See paragraph 944-825-25-2 for investment contracts.
","snippet":"The guidance in the Long-Duration Subsections of this Subtopic does not apply to investment contracts issued by an insurance entity that do not incorporate significant insurance risk and shall not be accounted for as ins…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fead288f6982d371d20168c60ce747baacd28e7e1f7a06ecb937334be3ee0f53","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ced7f92bc22bafcad343f73df7bc3af687b0dde87c0c09129308947bbddc5cb","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Long-Duration Contracts","heading":"Other Considerations","paragraphs":[{"citation":"944-20-15-15","para":"15-15","html":"
The following guidance addresses the scope application of the Long-Duration Subsections of this Subtopic:
  1. a
    Distinguishing investment contracts from universal life-type insurance contracts
  2. b
    Universal life-type contracts
  3. c
    Embedded derivatives.
","snippet":"The following guidance addresses the scope application of the Long-Duration Subsections of this Subtopic:\n(a) Distinguishing investment contracts from universal life-type insurance contracts\n(b) Universal life-type contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:141e9d0427a6e23f592f14b9bf652ef733b9f38674a6826795fa00141d7c6ea0","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-16","para":"15-16","html":"
A mortality or morbidity risk is present if, under the terms of the contract, the entity is required to make payments or forego required premiums contingent on the death or disability (in the case of life insurance contracts) or the continued survival (in the case of annuity contracts) of a specific individual or group of individuals.
","snippet":"A mortality or morbidity risk is present if, under the terms of the contract, the entity is required to make payments or forego required premiums contingent on the death or disability (in the case of life insurance contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f5e2125fcaded16c7bb122ce1e04d3f40c8384afa2e5011f2dd5035f14d6c23","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-17","para":"15-17","html":"
A contract provision that allows the holder of a long-duration contract to purchase an annuity at a guaranteed price on settlement of the contract does not entail a mortality risk until the right to purchase is executed. If purchased, the annuity is a new contract to be evaluated on its own terms.
","snippet":"A contract provision that allows the holder of a long-duration contract to purchase an annuity at a guaranteed price on settlement of the contract does not entail a mortality risk until the right to purchase is executed.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b867ec8ff3c8feeba896903b56103e5f191bac8b274db168b31f1c9992bcc2f6","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-18","para":"15-18","html":"
Annuity contracts may require the insurance entity to make a number of payments that are not contingent on the survival of the beneficiary, followed by life-contingent payments.
","snippet":"Annuity contracts may require the insurance entity to make a number of payments that are not contingent on the survival of the beneficiary, followed by life-contingent payments.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ee1bc4a4c60bc4f2315df10d11d82a7574989d2495921440aa4ff47795808fc","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-19","para":"15-19","html":"
Such contracts are considered insurance contracts under this Subtopic unless either of the following conditions exist:
  1. a
    The probability that life-contingent payments will be made is remote.
  2. b
    The present value of the expected life-contingent payments relative to the present value of all expected payments under the contract is insignificant.
","snippet":"Such contracts are considered insurance contracts under this Subtopic unless either of the following conditions exist:\n(a) The probability that life-contingent payments will be made is remote.\n(b) The present value of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bee90753231b842b16d7de528e4cae3339c9adb88bafe99d71303c4f16fbeab7","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-20","para":"15-20","html":"
To determine the scope application for a contract that contains death or other insurance benefit features, the insurance entity shall first determine whether the contract is an investment contract or insurance contract. Classification of a contract as an investment contract or as an insurance contract shall be made at contract inception, and the classification shall not be reassessed during the accumulation phase of the contract.
","snippet":"To determine the scope application for a contract that contains death or other insurance benefit features, the insurance entity shall first determine whether the contract is an investment contract or insurance contract. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b471ed67a14127bf3cc4dc43148572454d0acbffbb8c72fcf890bcb796871cd","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-21","para":"15-21","html":"
If the mortality and morbidity risk associated with insurance benefit features offered in a contract is deemed to be nominal—that is, a risk of insignificant amount or remote probability—the contract shall be classified as an investment contract; otherwise, it shall be considered an insurance contract. There is a rebuttable presumption that a contract has significant mortality risk if the additional insurance benefit would vary significantly in response to capital markets volatility.
","snippet":"If the mortality and morbidity risk associated with insurance benefit features offered in a contract is deemed to be nominal—that is, a risk of insignificant amount or remote probability—the contract shall be classified …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:82daef5fd6e0ef9865188c1aae01315fbce8edd3cb3bd3385e9f23c74d17745b","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-22","para":"15-22","html":"
If the mortality or morbidity risk is other than nominal and the fees assessed or insurance benefits are not fixed and guaranteed, the contract should be classified as a universal life-type contract by the insurance entity.
","snippet":"If the mortality or morbidity risk is other than nominal and the fees assessed or insurance benefits are not fixed and guaranteed, the contract should be classified as a universal life-type contract by the insurance enti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bfb7deed4fa75b5a4ddbab3cdc22a15db1880ff067f812507eee327375e8147","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-23","para":"15-23","html":"
If the fees assessed on a contract and insurance benefits provided by the contract are fixed and guaranteed or if the contract is short duration, the contract should be classified as a traditional long-duration contract or short-duration contract, respectively.
","snippet":"If the fees assessed on a contract and insurance benefits provided by the contract are fixed and guaranteed or if the contract is short duration, the contract should be classified as a traditional long-duration contract …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e09f3e91303f0402466bfd2567d6a70427fbc7d779bdf3d458b30f2ce251ca3","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-24","para":"15-24","html":"
The determination of the significance of mortality or morbidity risk shall be based on a comparison of the following amounts:
  1. a
    Excess payments. The present value of expected excess payments to be made under insurance benefit features—that is, insurance benefit amounts and related incremental claim adjustment expenses in excess of the account balances.
  2. b
    Revenue. The present value of all amounts expected to be assessed against the contract holder and the expected investment margin.
","snippet":"The determination of the significance of mortality or morbidity risk shall be based on a comparison of the following amounts:\n(a) Excess payments. The present value of expected excess payments to be made under insurance …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a2bae51f5ea7e7b523ad67ed2c56eae2133c5de8288f978f9a92e9ecd9a806d9","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-25","para":"15-25","html":"
In performing the analysis, an insurance entity shall consider both frequency and severity under a full range of scenarios that considers the volatility inherent in the assumptions, rather than making a best estimate using one set of assumptions. For example, if the annuity contract is a variable annuity contract, the insurance entity shall consider a range of fund return scenarios. If considering a range of scenarios, the insurance entity shall consider historical investment returns, the volatility of those returns, and expected future returns, as applicable.
","snippet":"In performing the analysis, an insurance entity shall consider both frequency and severity under a full range of scenarios that considers the volatility inherent in the assumptions, rather than making a best estimate usi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5fe5b95a925364da5d07b4f5671bfad5da07b9e8f98f89269140a7ef9fc5722d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-26","para":"15-26","html":"
For purposes of the scope application of the Long-Duration Subsections of this Subtopic, universal life-type contracts include contracts that provide either death or annuity benefits and are characterized by any of the following features:
  1. a
    One or more of the amounts assessed by the insurer against the policyholder—including amounts assessed for mortality coverage, contract administration, initiation, or surrender—are not fixed and guaranteed by the terms of the contract.
  2. b
    Amounts that accrue to the benefit of the policyholder—including interest accrued to policyholder balances—are not fixed and guaranteed by the terms of the contract.
  3. c
    Premiums may be varied by the policyholder within contract limits and without consent of the insurer.
","snippet":"For purposes of the scope application of the Long-Duration Subsections of this Subtopic, universal life-type contracts include contracts that provide either death or annuity benefits and are characterized by any of the f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95986c932648e12c214b101002f59ca239ab0a717ab14eceed3e7dab7541bb82","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-27","para":"15-27","html":"
A participating or nonguaranteed-premium contract is within the scope of the Long-Duration Subsections of this Subtopic if the terms of the contract suggest that it is, in substance, a universal life-type contract. The determination that a contract is in substance a universal life-type contract requires judgment and a careful examination of all contract terms.
","snippet":"A participating or nonguaranteed-premium contract is within the scope of the Long-Duration Subsections of this Subtopic if the terms of the contract suggest that it is, in substance, a universal life-type contract. The d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb23a1f5ae20e30e832bc9364217f483b2fcf4c612b2f5ef9908c03bca11fd65","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-28","para":"15-28","html":"
The following two paragraphs describe some circumstances in which a participating or nonguaranteed-premium contract shall be accounted for as a universal life-type contract. The provisions of the following two paragraphs are not intended to be either all-inclusive or limiting. Limited-payment participating and limited-payment nonguaranteed-premium contracts that are not, in substance, universal life-type contracts are limited-payment contracts because they are not conventional forms of participating or nonguaranteed-premium contracts.
","snippet":"The following two paragraphs describe some circumstances in which a participating or nonguaranteed-premium contract shall be accounted for as a universal life-type contract. The provisions of the following two paragraphs…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ca8165cba89c3f1691b14b4269e909aa165277abc0bba741003554de45af6298","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-29","para":"15-29","html":"
A participating contract that includes any of the following features shall be considered a universal life-type contract:
  1. a
    The policyholder may vary premium payments within contract limits and without consent of the insurer.
  2. b
    The contract has a stated account balance that is credited with policyholder premiums and interest and against which assessments are made for contract administration, mortality coverage, initiation, or surrender, and any of the amounts assessed or credited are not fixed and guaranteed.
  3. c
    The insurer expects that changes in any contract element will be based primarily on changes in interest rates or other market conditions rather than on the experience of a group of similar contracts or the entity as a whole.
","snippet":"A participating contract that includes any of the following features shall be considered a universal life-type contract:\n(a) The policyholder may vary premium payments within contract limits and without consent of the in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60c89624d8dc1ba2632701db856faac4f62b9fb679fe80d1c95c4e884d7ac7c6","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-30","para":"15-30","html":"
A nonguaranteed-premium contract that includes either of the features (b) or (c) in the preceding paragraph shall be considered a universal life-type contract.
","snippet":"A nonguaranteed-premium contract that includes either of the features (b) or (c) in the preceding paragraph shall be considered a universal life-type contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e08965ad5a05512a80880b0945e2a45dad19c18c9e3ba0c38cfdc725e2d47dc7","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-31","para":"15-31","html":"
For guidance on accounting for embedded derivatives contained in nontraditional and other contracts, see Subtopic 815-15.
","snippet":"For guidance on accounting for embedded derivatives contained in nontraditional and other contracts, see Subtopic 815-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f38ed9aa45661034a1c8102870756a7bd5cfdd84d9fc2ac7b395c7dfded7c1c","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:efe7cc595556c2b49d849814d58b375d08187e968ac489d7bf95e00fe9dbc5e2","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Reinsurance Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"944-20-15-32","para":"15-32","html":"
The Reinsurance Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific entity and instrument qualifications and exceptions noted below.
","snippet":"The Reinsurance Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific entity and instrument qualifications and exceptions noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e64b87f7859cc18c219e62a41f8f35bbe797e2b6cb744d7eb56a852a90e4bb60","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7789e3f53706fe546fad103ea90798e2b2d620f7099f659f0a861abd6784d9ac","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Reinsurance Contracts","heading":"Entities","paragraphs":[{"citation":"944-20-15-33","para":"15-33","html":"
Servicing carriers for involuntary risk pools also are included in the scope of the Reinsurance Contracts Subsections of this Subtopic because the servicing carrier business is indistinguishable effectively from other types of reinsurance for accounting purposes.
","snippet":"Servicing carriers for involuntary risk pools also are included in the scope of the Reinsurance Contracts Subsections of this Subtopic because the servicing carrier business is indistinguishable effectively from other ty…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8744ae3e44741d92a5c12ec8885385b65d330ff0c7174f6f58e4b8ac63824bd8","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:554b45c0f15e840c477c2441d726d8043a96adc3f2fd44952b8d4a96d8ddc512","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Reinsurance Contracts","heading":"Instruments","paragraphs":[{"citation":"944-20-15-34","para":"15-34","html":"
The financial reporting for a contract with a reinsurer depends on whether the contract is considered to be reinsurance for purposes of applying this Subtopic. Financial reporting for a reinsurance contract also depends on whether the contract reinsures short-duration or long-duration insurance contracts and, for short-duration contracts, on whether the contract is considered prospective reinsurance or retroactive reinsurance. For contracts that reinsure long-duration contracts, characteristics of the reinsurance contract determine whether the contract is short- or long-duration.
","snippet":"The financial reporting for a contract with a reinsurer depends on whether the contract is considered to be reinsurance for purposes of applying this Subtopic. Financial reporting for a reinsurance contract also depends …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60759e161626b6de23656373f12a29d22bcd94daba2c4937e2364a8570f9b9af","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-34A","para":"15-34A","html":"
Determining whether a contract that reinsures a long-duration insurance contract is long-duration or short-duration in nature is a matter of judgment, considering all of the facts and circumstances. For example, some contracts described as yearly renewable term may be, in substance, long-duration contracts, depending on their terms and how they are priced.
","snippet":"Determining whether a contract that reinsures a long-duration insurance contract is long-duration or short-duration in nature is a matter of judgment, considering all of the facts and circumstances. For example, some con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:340a85fafbc4935d79a1c4f130ec091c592afd98e6203a93b35e80f850a5f0a0","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-34B","para":"15-34B","html":"
The distinction between prospective and retroactive reinsurance contracts is based on whether the contract reinsures future or past insured events covered by the underlying contracts. For example, in occurrence-based insurance, the insured event is the occurrence of a loss covered by the insurance contract. In claims-made insurance, the insured event is the reporting to the insurer, within the period specified by the policy, of a claim for a loss covered by the insurance contract. A claims-made reinsurance contract that reinsures claims asserted to the reinsurer in a future period as a result of insured events that occurred before entering into the reinsurance contract is a retroactive contract.
","snippet":"The distinction between prospective and retroactive reinsurance contracts is based on whether the contract reinsures future or past insured events covered by the underlying contracts. For example, in occurrence-based ins…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92fd494e81dc9301cbf9214906036aa90cf70211451c31419c04ce7d265634e1","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-34C","para":"15-34C","html":"
Reinsurance contracts may include both prospective and retroactive provisions. For example, a reinsurance contract that reinsures liabilities relating to contracts written during one or more prior years also may reinsure losses on contracts to be written during one or more future years. Reinsurance also may be acquired some time after the reinsured contract has been written, but before the close of the coverage period for that contract, and be made effective as of the beginning of the contract period. This may result in a reinsurance contract with prospective and retroactive provisions that relate to a single contract year. It is not uncommon for a reinsurance arrangement to be initiated before the beginning of a policy period but not finalized until after the policy period begins. Whether there was agreement in principle at the beginning of the policy period and, therefore, the contract is substantively prospective depends on the facts and circumstances.
","snippet":"Reinsurance contracts may include both prospective and retroactive provisions. For example, a reinsurance contract that reinsures liabilities relating to contracts written during one or more prior years also may reinsure…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:290f32ab7f7bcb5db278e95d26ce68fd1f93421b69717ac3c1cee6a21912d2ce","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-35","para":"15-35","html":"
Paragraphs 944-605-30-4 and
944-605-35-14 through 35-15
state that reinsurance of long-duration contracts can be either short- or long-duration. The fact that no similar guidance is provided for short-duration contracts is intentional, because it is not possible to reinsure more risk than was originally insured under the primary insurance contracts.
","snippet":"Paragraphs 944-605-30-4 and 944-605-35-14 through 35-15 state that reinsurance of long-duration contracts can be either short- or long-duration. The fact that no similar guidance is provided for short-duration contracts …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39a7258b66f49a591293a4472bd890bf751f5eabc3f3dd084c2c2012f235c4b1","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-36","para":"15-36","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7308172cbd86e62475ae714b925a4d69495a5e5160cb532669f882e4864683d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-37","para":"15-37","html":"
The guidance in the Reinsurance Subsections of this Subtopic applies to the following instruments:
  1. a
    Any transaction, regardless of its form, whose individual terms indemnify an insurer against loss or liability relating to insurance risk. That is, all contracts, including contracts that may not be structured or described as reinsurance, shall be accounted for as reinsurance if those conditions are met, including reinsurance contracts used to, in effect, sell a line of business by coinsuring all or substantially all of the risks related to the line.
  2. b
    All contract amendments.
","snippet":"The guidance in the Reinsurance Subsections of this Subtopic applies to the following instruments:\n(a) Any transaction, regardless of its form, whose individual terms indemnify an insurer against loss or liability relati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73bef3f635908fe00bf9c1ac98149d268287d5c906f27ce243b1d0a15d19b54b","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-38","para":"15-38","html":"
The guidance in the Reinsurance Contracts Subsections of this Subtopic does not apply to the following instruments:
  1. a
    Contracts that do not meet the conditions for reinsurance accounting
  2. b
    Except as noted in the following paragraph, reinsurance assumed.
","snippet":"The guidance in the Reinsurance Contracts Subsections of this Subtopic does not apply to the following instruments:\n(a) Contracts that do not meet the conditions for reinsurance accounting\n(b) Except as noted in the foll…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8471fd7544c2459d709b63c0f8ecb4137e895cc9bac85e08a111132b415306f7","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-39","para":"15-39","html":"
Only the following provisions of the Reinsurance Subsections in this Subtopic apply to reinsurance assumed:
  1. a
    Paragraphs
    944-20-15-40 through 15-41
    , 944-20-15-46, 944-20-15-49, 944-20-15-51, 944-20-15-53, and
    944-20-15-59 through 15-61
    provide guidance on indemnification against loss or liability relating to insurance risk.
  2. b
    Paragraphs
    944-20-50-3 through 50-4
    require certain disclosures.
","snippet":"Only the following provisions of the Reinsurance Subsections in this Subtopic apply to reinsurance assumed:\n(a) Paragraphs 944-20-15-40 through 15-41, 944-20-15-46, 944-20-15-49, 944-20-15-51, 944-20-15-53, and 944-20-15…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:17b830c21cf49dc609452922580a0366ab09d0757ce307893da594ed09bb875c","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:975f2fd1ba48c834133ce10cd3a9b7a576982871ec80b59e0a3fdf4ec5afbd7e","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Reinsurance Contracts","heading":"Other Considerations","paragraphs":[{"citation":"944-20-15-40","para":"15-40","html":"
Determining under paragraph 944-20-15-37(a) whether a contract with a reinsurer provides indemnification against loss or liability relating to insurance risk requires a complete understanding of that contract and other contracts or agreements between the ceding entity and related reinsurers. A complete understanding includes an evaluation of all contractual features that do either of the following:
  1. a
    Limit the amount of insurance risk to which the reinsurer is subject (such as through experience refunds, cancellation provisions, adjustable features, or additions of profitable lines of business to the reinsurance contract)
  2. b
    Delay the timely reimbursement of claims by the reinsurer (such as through payment schedules or accumulating retentions from multiple years).
This risk transfer assessment shall be made at contract inception, based on facts and circumstances known at the time.
","snippet":"Determining under paragraph 944-20-15-37(a) whether a contract with a reinsurer provides indemnification against loss or liability relating to insurance risk requires a complete understanding of that contract and other c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3250707c94206ba28bf96e65b5f64cefcf0776bd663d48e7ea7046e6976258e0","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-40A","para":"15-40A","html":"
Reinsurance programs often entail the reinsurance of various layers of exposure through multiple reinsurance contracts. Indemnification against loss or liability relating to insurance risk shall be determined in relation to the provisions of the individual reinsurance contract being evaluated.
","snippet":"Reinsurance programs often entail the reinsurance of various layers of exposure through multiple reinsurance contracts. Indemnification against loss or liability relating to insurance risk shall be determined in relation…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:027d96431d97a408cd511d609d85d52ac33725b59fceb9dc08c1d8e32c9eb9a2","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-41","para":"15-41","html":"
Unless the condition in paragraph 944-20-15-53 is met, indemnification of the ceding entity against loss or liability relating to insurance risk in reinsurance of short-duration contracts exists under paragraph 944-20-15-37(a) only if both of the following conditions are met:
  1. a
    Significant insurance risk. The reinsurer assumes significant insurance risk under the reinsured portions of the underlying insurance contracts. Implicit in this condition is the requirement that both the amount and timing of the reinsurer's payments depend on and directly vary with the amount and timing of claims settled under the reinsured contracts.
  2. b
    Significant loss. It is reasonably possible that the reinsurer may realize a significant loss from the transaction.
The conditions are independent and the ability to meet one does not mean that the other has been met. A substantive demonstration that both conditions have been met is required for a short-duration contract to transfer risk.
","snippet":"Unless the condition in paragraph 944-20-15-53 is met, indemnification of the ceding entity against loss or liability relating to insurance risk in reinsurance of short-duration contracts exists under paragraph 944-20-15…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a702d027a737e4f122861f8374185593295a2cb5aa48864929fd3007e4bbe604","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-42","para":"15-42","html":"
The reference in (a) in the preceding paragraph acknowledges that a ceding entity may reinsure only part of the risks associated with the underlying contracts. For example, a proportionate share of all risks or only specified risks may be reinsured. The conditions for reinsurance accounting are evaluated in relation to the reinsured portions of the underlying insurance contracts, rather than all aspects of those contracts.
","snippet":"The reference in (a) in the preceding paragraph acknowledges that a ceding entity may reinsure only part of the risks associated with the underlying contracts. For example, a proportionate share of all risks or only spec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2342b8791fede4edb9eb5140dcbd7e67deec0e5ed189d95f4912b7dd3ca42f6","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-43","para":"15-43","html":"
The assessment of the criterion in paragraph 944-20-15-41 shall be applied from contract inception, considering the effect of any subsequent contract amendments. Careful evaluation and considered judgment is required to determine whether a significant loss to the reinsurer was reasonably possible at inception. The status of a contract should be determinable at inception and, absent amendment, subsequent changes shall be very rare.
","snippet":"The assessment of the criterion in paragraph 944-20-15-41 shall be applied from contract inception, considering the effect of any subsequent contract amendments. Careful evaluation and considered judgment is required to …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97fda2d5b6ed4edec47c2fc4260160adda24bb9c5d06b7a5b3006e2db3e8cabc","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-44","para":"15-44","html":"
The assessment in paragraph 944-20-15-41 is applied to a particular scenario, not to the individual assumptions used in the scenario. Therefore, a scenario is not reasonably possible unless the likelihood of the entire set of assumptions used in the scenario occurring together is reasonably possible.
","snippet":"The assessment in paragraph 944-20-15-41 is applied to a particular scenario, not to the individual assumptions used in the scenario. Therefore, a scenario is not reasonably possible unless the likelihood of the entire s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3783b71ec378d29d02239e0612459b894e579ebaab756bcdcd26191b43d0675","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-45","para":"15-45","html":"
Contracts that reinsure risks arising from short-duration contracts shall meet the definition of a short-duration contract in paragraph 944-20-15-2 to be accounted for as reinsurance, because reinsurance of short-duration contracts is inherently short-duration. Contracts that reinsure short-duration insurance risks over a significantly longer period are, in substance, financing transactions, because any of the following conditions exist:
  1. a
    Premiums are deferred over a period beyond the term of the underlying insurance contracts.
  2. b
    Losses are recognized in a different period than the period in which the event causing the loss takes place.
  3. c
    Both events (a) and (b) occur at different points in time.
","snippet":"Contracts that reinsure risks arising from short-duration contracts shall meet the definition of a short-duration contract in paragraph 944-20-15-2 to be accounted for as reinsurance, because reinsurance of short-duratio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f84081e351807ade5e1561fda35fdfc6fa1f298224c57931e410f024eab516c3","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-46","para":"15-46","html":"
A reinsurer shall not be considered under paragraph 944-20-15-37(a) to have assumed significant insurance risk under reinsured short-duration contracts if the probability of a significant variation in either the amount or timing of payments by the reinsurer is remote. Contractual provisions that delay timely reimbursement to the ceding entity would prevent this condition from being met because they prevent the reinsurer's payments from directly varying with the claims settled under the reinsured contracts.
","snippet":"A reinsurer shall not be considered under paragraph 944-20-15-37(a) to have assumed significant insurance risk under reinsured short-duration contracts if the probability of a significant variation in either the amount o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f897f254593675e7e6201b1400fd8305094aa75c877a00c6041a37542ba21252","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-47","para":"15-47","html":"
Whether underwriting risk has transferred to the reinsurer depends on how much uncertainty about the ultimate amount of net cash flows from premiums, commissions, claims, and claim settlement expenses paid under a contract has been transferred to the reinsurer. The preceding paragraph indicates that insurance risk transfer requires that both the amount and timing of the reinsurer's payments depend on, and directly vary with, the amount and timing of claims settled under the reinsured contracts. Accordingly, the significance of the amount of underwriting risk transferred shall be evaluated in relation to the ceding entity's claims payments.
","snippet":"Whether underwriting risk has transferred to the reinsurer depends on how much uncertainty about the ultimate amount of net cash flows from premiums, commissions, claims, and claim settlement expenses paid under a contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:32805f60ebb2baeeedc7ebfd0c54478e3101dbcab2be0527112d6228053f84f2","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-48","para":"15-48","html":"
The word timely is used in paragraph 944-20-15-40 in the ordinary temporal sense to refer to the length of time between payment of the underlying reinsured claims and reimbursement by the reinsurer. While the test for reasonable possibility of significant loss to the reinsurer provides for a present-value-based assessment of the economic characteristics of the reinsurance contract, the concept of timely reimbursement relates to the transfer of insurance risk (the condition in paragraph 944-20-15-41[a]), not the reasonable possibility of significant loss (the condition in paragraph 944-20-15-41[b]). Accordingly, timely reimbursement shall be evaluated based solely on the length of time between payment of the underlying reinsured claims and reimbursement by the reinsurer.
","snippet":"The word timely is used in paragraph 944-20-15-40 in the ordinary temporal sense to refer to the length of time between payment of the underlying reinsured claims and reimbursement by the reinsurer. While the test for re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6330d130a6dcb80b349ee9323a6a3d9e12ecc3bb7340b9eadcbb31374f63f54b","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-49","para":"15-49","html":"
The ceding entity's evaluation of whether it is reasonably possible for a reinsurer to realize a significant loss from the transaction shall be based on the present value of all cash flows between the ceding and assuming entities under reasonably possible outcomes, without regard to how the individual cash flows are characterized. The same interest rate shall be used to compute the present value of cash flows for each reasonably possible outcome tested. To be reasonable and appropriate, that rate shall reflect both of the following:
  1. a
    The expected timing of payments to the reinsurer
  2. b
    The duration over which those cash flows are expected to be invested by the reinsurer.
","snippet":"The ceding entity's evaluation of whether it is reasonably possible for a reinsurer to realize a significant loss from the transaction shall be based on the present value of all cash flows between the ceding and assuming…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:382073371b6f3c185a60f524cb8a6e66406cc33e108af737993e9542b482464a","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-50","para":"15-50","html":"
All cash flows are included in the calculation in the preceding paragraph because payments that effectively represent premiums or refunds of premiums may be described in various ways under the terms of a reinsurance contract. The way a cash flow is characterized does not affect whether it should be included in determining the reinsurer's exposure to loss. Only cash flows between the ceding and assuming entities are considered, therefore precluding consideration of other expenses of the reinsurer (such as taxes and operating expenses) in the calculation.
","snippet":"All cash flows are included in the calculation in the preceding paragraph because payments that effectively represent premiums or refunds of premiums may be described in various ways under the terms of a reinsurance cont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33de729949694f0efb0f63aa2d7786439dc466d446cfe1d61c5309ab65776625","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-51","para":"15-51","html":"
Significance of loss shall be evaluated by comparing the following:
  1. a
    The present value of all cash flows (determined as described in paragraph 944-20-15-49)
  2. b
    The present value of the amounts paid or deemed to have been paid to the reinsurer.
Determining (for purposes of [b]) the amounts paid or deemed to have been paid for reinsurance requires an understanding of all contract provisions. For example, payments and receipts under a reinsurance contract may be settled net. The ceding entity may withhold funds as collateral or may be entitled to compensation other than recovery of claims. Gross premiums shall be used—expenses shall not be deducted from premiums in evaluating the significance of a reasonably possible loss.
","snippet":"Significance of loss shall be evaluated by comparing the following:\n(a) The present value of all cash flows (determined as described in paragraph 944-20-15-49)\n(b) The present value of the amounts paid or deemed to have …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6cfd33eb46519471bd3e30307278a37cbcf1a83df48caaa9c2d38c2341d3dcb","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-52","para":"15-52","html":"
Because the present value of cash flows shall be determined over the period in which cash flows are reasonably expected to occur, unless commutation (termination) is expected in the scenario being evaluated, commutation shall not be assumed in the calculation. Further, the assumptions used in a scenario shall be internally consistent and economically rational for that scenario's outcome to be considered reasonably possible.
","snippet":"Because the present value of cash flows shall be determined over the period in which cash flows are reasonably expected to occur, unless commutation (termination) is expected in the scenario being evaluated, commutation …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dcec934e3b90710e525cb5b8f8d0435e9059a49fadc22a5b879bb9e773cf9481","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-53","para":"15-53","html":"
If, based on the comparison in paragraph 944-20-15-51, the reinsurer is not exposed to the reasonable possibility of significant loss, the ceding entity shall be considered indemnified against loss or liability relating to insurance risk only if substantially all of the insurance risk relating to the reinsured portions of the underlying insurance contracts has been assumed by the reinsurer. That condition is met only if insignificant insurance risk is retained by the ceding entity on the reinsured portions of the underlying insurance contracts. The assessment of that condition shall be made by comparing both of the following:
  1. a
    The net cash flows of the reinsurer under the reinsurance contract
  2. b
    The net cash flows of the ceding entity on the reinsured portions of the underlying insurance contracts.
If the economic position of the reinsurer relative to the insurer cannot be determined, the contract shall not qualify under the exception in this paragraph.
","snippet":"If, based on the comparison in paragraph 944-20-15-51, the reinsurer is not exposed to the reasonable possibility of significant loss, the ceding entity shall be considered indemnified against loss or liability relating …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c260cd0c14ee53c08ef4359a91a3e870a369f450486ceb7cbee25a0c8ff821d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-54","para":"15-54","html":"
The extremely narrow and limited exemption in the preceding paragraph is for contracts that reinsure either an individual risk or an underlying book of business that is inherently profitable. To qualify under that exception, no more than trivial insurance risk on the reinsured portions of the underlying insurance contracts may be retained by the ceding entity. The reinsurer's economic position shall be virtually equivalent to having written the relevant portions of the reinsured contracts directly.
","snippet":"The extremely narrow and limited exemption in the preceding paragraph is for contracts that reinsure either an individual risk or an underlying book of business that is inherently profitable. To qualify under that except…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e29dfe155d6f461f12a6ebdc5585819cf0660a64d39e5a5c606059c70b7d5a39","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-55","para":"15-55","html":"
To be accounted for as reinsurance, a contract that reinsures risks arising from short-duration insurance contracts must meet all of the following conditions:
  1. a
    The contract shall qualify as a short-duration contract under paragraph 944-20-15-7.
  2. b
    The contract shall not contain features that prevent the risk transfer criteria in this Subsection from being reasonably applied and those risk transfer criteria shall be met.
  3. c
    The ultimate premium expected to be paid or received under the contract shall be reasonably estimable and allocable in proportion to the reinsurance protection provided as required by paragraphs 944-605-25-2 and 944-605-35-8.
If any of these conditions are not met, a deposit method of accounting shall be applied by the ceding and assuming entities.
","snippet":"To be accounted for as reinsurance, a contract that reinsures risks arising from short-duration insurance contracts must meet all of the following conditions:\n(a) The contract shall qualify as a short-duration contract u…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:407800ddcc60eb9925e2e1a23704e5d7d53d2e79e16d56aa37709914856ea76f","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-56","para":"15-56","html":"
Condition (b) in the preceding paragraph applies to a contract and determining the substance of a contract is a judgmental matter. If an agreement with a reinsurer consists of both risk transfer and nonrisk transfer coverages that have been combined into a single legal document, those coverages must be considered separately for accounting purposes. Section 944-20-15 does not intend for different kinds of exposures combined in a program of reinsurance to be evaluated for risk transfer and accounted for together because that would allow contracts that do not meet the conditions for reinsurance accounting to be accounted for as reinsurance by being designated as part of a program that in total meets the conditions for reinsurance accounting.
","snippet":"Condition (b) in the preceding paragraph applies to a contract and determining the substance of a contract is a judgmental matter. If an agreement with a reinsurer consists of both risk transfer and nonrisk transfer cove…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:596d7bff18a28bc70fedae2a5831b48fa1ada1672b5a399974da7e7df9e57a54","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-57","para":"15-57","html":"
Because the retrospective rating provisions of single-year retrospectively rated contracts do not create benefits or obligations in a future accounting period, other guidance, including paragraphs 720-20-25-1, 944-605-25-2(a) through (b), 944-605-25-20, and 944-605-35-8, shall be applied to those contracts.
","snippet":"Because the retrospective rating provisions of single-year retrospectively rated contracts do not create benefits or obligations in a future accounting period, other guidance, including paragraphs 720-20-25-1, 944-605-25…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d05837072005fb84de0f3b947f9001be4bf51479a439190ca24abafd6160e2b2","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-58","para":"15-58","html":"
If the retrospectively rated contract contains any of the characteristics of paragraph 460-10-15-4 and does not qualify for the scope exception in paragraph 460-10-15-7(d), the guarantor would be subject to the initial recognition, initial measurement, and disclosure provisions of Subtopic 460-10. The guarantor could be the ceding entity, assuming entity, or both, depending on the terms of the retrospectively rated contract.
","snippet":"If the retrospectively rated contract contains any of the characteristics of paragraph 460-10-15-4 and does not qualify for the scope exception in paragraph 460-10-15-7(d), the guarantor would be subject to the initial r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40a6b7ed62e4de291bb5d18e34ca8a47d61e97f446cdebb7bd8f09d1b2aed1ef","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-59","para":"15-59","html":"
Indemnification of the ceding entity against loss or liability relating to insurance risk in reinsurance of long-duration contracts requires the reasonable possibility that the reinsurer may realize significant loss from assuming insurance risk.
","snippet":"Indemnification of the ceding entity against loss or liability relating to insurance risk in reinsurance of long-duration contracts requires the reasonable possibility that the reinsurer may realize significant loss from…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1744353ddabcdc495496747078d249f14d3287ad27dd656acf6e71ec22c56d4","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-60","para":"15-60","html":"
Consistent with the definition of investment contract, a contract that does not subject the reinsurer to the reasonable possibility of significant loss from the events insured by the underlying insurance contracts does not indemnify the ceding entity against insurance risk.
","snippet":"Consistent with the definition of investment contract, a contract that does not subject the reinsurer to the reasonable possibility of significant loss from the events insured by the underlying insurance contracts does n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5270c95d6d8cf38c25e53b1e1c985207dab31c51b7de4e2967960fc829a89baf","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-61","para":"15-61","html":"
The evaluation of mortality risk or morbidity risk in contracts that reinsure universal life-type policies shall be consistent with the criteria in paragraphs
944-20-15-16 through 15-19
. Evaluation of the presence of insurance risk in contracts that reinsure other long-duration contracts (such as those that reinsure ordinary life contracts or contracts that provide benefits related only to illness, physical injury, or disability) also shall be consistent with those criteria.
","snippet":"The evaluation of mortality risk or morbidity risk in contracts that reinsure universal life-type policies shall be consistent with the criteria in paragraphs 944-20-15-16 through 15-19. Evaluation of the presence of ins…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6009fe1af6b6742c375059806b45ab1809b7991a2c1e9d928acae75d766831e7","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-62","para":"15-62","html":"
Any change or adjustment of contractual terms is considered an amendment for purposes of applying this Subtopic, including all but the most trivial changes and without distinction between financial and nonfinancial terms.
","snippet":"Any change or adjustment of contractual terms is considered an amendment for purposes of applying this Subtopic, including all but the most trivial changes and without distinction between financial and nonfinancial terms…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f050ef8d5f21743f01ca98437f8ef3ba83c8b0f512c7c22b4941d932a9ff974","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-63","para":"15-63","html":"
Examples of amendments include but are not limited to the following:
  1. a
    Replacing one assuming entity with another (including an affiliated entity)
  2. b
    Modifying the contract's limit, coverage, premium, commissions, or experience-related adjustable features.
","snippet":"Examples of amendments include but are not limited to the following:\n(a) Replacing one assuming entity with another (including an affiliated entity)\n(b) Modifying the contract's limit, coverage, premium, commissions, or …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8735dea474ad600e7469634ad3014237f8e4519805a1ab7cbea12ec47c51a9d","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-64","para":"15-64","html":"
If contractual terms are amended, risk transfer shall be reassessed. For example, a contract that, upon its inception, met the conditions for reinsurance accounting under this Subsection could later be amended so that it no longer meets those conditions. The contract shall be reclassified and accounted for as a deposit in accordance with the guidance in Subtopic 340-30.
","snippet":"If contractual terms are amended, risk transfer shall be reassessed. For example, a contract that, upon its inception, met the conditions for reinsurance accounting under this Subsection could later be amended so that it…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ce58206761639d697bf339b6194485c2c17f0a9526fc89b582fdbe8cfa3e1b4","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-65","para":"15-65","html":"
Whether an amended contract in substance transfers risk shall be determined considering all of the facts and circumstances in light of risk transfer requirements. Judgment also will be required to determine whether an amendment in effect creates a new contract.
","snippet":"Whether an amended contract in substance transfers risk shall be determined considering all of the facts and circumstances in light of risk transfer requirements. Judgment also will be required to determine whether an am…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:612e877e6090a9d6bd1ea71a6774a6c48fa078d5495e1452559b2b178c97edcc","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c00810ee46c3f0136fcd57048b2174b85f04e69abb64dea4920df3c8cfe8856","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"944-20-15-66","para":"15-66","html":"
The Financial Guarantee Insurance Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications and exceptions noted below.
","snippet":"The Financial Guarantee Insurance Contracts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications and exceptions noted below…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:026f51c2663b1d977e0553c2f47784df2dadce4ff9c0d003a0b22554d9bb42e1","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-67","para":"15-67","html":"
Except as noted in the following paragraph, the guidance in the Financial Guarantee Insurance Contract Subsections applies to all financial guarantee insurance contracts and financial guarantee reinsurance contract.
","snippet":"Except as noted in the following paragraph, the guidance in the Financial Guarantee Insurance Contract Subsections applies to all financial guarantee insurance contracts and financial guarantee reinsurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e235e29473aabd24509796a6d553a5736be81e1dd320fa02691afc588466e619","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"citation":"944-20-15-68","para":"15-68","html":"
The guidance in the Financial Guarantee Insurance Contract Subsections does not apply to any of the following:
  1. a
    An insurance contract that is similar to a financial guarantee insurance contract (for example, mortgage guaranty insurance and credit insurance on trade receivables)
  2. b
    A financial guarantee insurance contract accounted for as a derivative instrument within the scope of Subtopic 815-10.
An insurance entity shall consider the application of the Financial Guarantee Insurance Contracts Subsections only if the contract is not within the scope of Subtopic 815-10 and is not accounted for as a derivative instrument.
","snippet":"The guidance in the Financial Guarantee Insurance Contract Subsections does not apply to any of the following:\n(a) An insurance contract that is similar to a financial guarantee insurance contract (for example, mortgage …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e54843c358d4aff041eb12b52b6074a034dff3fbd7b656d737ad9fad44946745","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6e5c95c2aef1825d09cdc706d4bcec670114ad1c6c5bc22d68d8ba0afc16aa4","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"block":"Financial Guarantee Insurance Contracts","heading":"Other Considerations","paragraphs":[{"citation":"944-20-15-69","para":"15-69","html":"
The recognition and measurement provisions of the Financial Guarantee Insurance Contracts Subsections shall be applied on a contract-by-contract basis.
","snippet":"The recognition and measurement provisions of the Financial Guarantee Insurance Contracts Subsections shall be applied on a contract-by-contract basis.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b156049c652416c9856b487d437f9a081a2b66cd0e2a4fbf89c74475a504e01","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d073e2b670551c3b5b2d35a44a335f52b11dc81830e7f8fe96bbe86aab4e789f","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a775426c09ddc2293e8ba943a69d825f8b8ff6de3021b719ed3cd9dde4497f25","downloaded_from":"2026-09-10T02:15:06.206Z","last_downloaded_at":"2026-09-10T02:15:06.206Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480056","source_sha256":"e4d6276a77d10936d41827f59fa4b58a5f689d3c10f59235496f797129ebc62b"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":"Short-Duration Contracts","heading":"Multiple-Year Retrospectively Rated Insurance Contracts","paragraphs":[{"citation":"944-20-25-1","para":"25-1","html":"
To be accounted for as insurance, a multiple-year retrospectively rated insurance contract must indemnify the insured as required by paragraph 944-20-15-1B.
","snippet":"To be accounted for as insurance, a multiple-year retrospectively rated insurance contract must indemnify the insured as required by paragraph 944-20-15-1B.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a5d6d9eb8c9efc060f2325c603bfaadde232c32d46ddc760fac441b72d910cc3","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}},{"citation":"944-20-25-2","para":"25-2","html":"
For a multiple-year retrospectively rated insurance contract accounted for as insurance, the insurer shall both:
  1. a
    Recognize an asset to the extent that the insured has an obligation to pay cash (or other consideration) to the insurer that would not have been required absent experience under the contract
  2. b
    Recognize a liability to the extent that any cash (or other consideration) would be payable by the insurer to the insured based on experience to date under the contract.
","snippet":"For a multiple-year retrospectively rated insurance contract accounted for as insurance, the insurer shall both:\n(a) Recognize an asset to the extent that the insured has an obligation to pay cash (or other consideration…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f2ef915bf741ea9efa1e98cb57720480366c493d1557d89d6b99e917a1fa286","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}},{"citation":"944-20-25-3","para":"25-3","html":"
Deposit accounting shall not be used to avoid loss recognition that would otherwise be required (for example, if the insured has no future coverage relating to the deposit with the insurer and, therefore, the deposit is not recoverable).
","snippet":"Deposit accounting shall not be used to avoid loss recognition that would otherwise be required (for example, if the insured has no future coverage relating to the deposit with the insurer and, therefore, the deposit is …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8d56a442f1c51060da3457078c3746866db6a2b0913b6130c4bc15c7d5b27fd3","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1fcbb2546190c283e72898c3ce49768ebc1a0ea69bc6be6ea0a9841e4ec51ae","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}},{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Contracts by Ceding and Assuming Entities","paragraphs":[{"citation":"944-20-25-4","para":"25-4","html":"
For contracts that meet all of the conditions described in paragraph 944-20-15-55:
  1. a
    The ceding entity shall recognize a liability and the assuming entity shall recognize an asset to the extent that the ceding entity has an obligation to pay cash (or other consideration) to the reinsurer that would not have been required absent experience under the contract (for example, payments that would not have been required if losses had not been experienced).
  2. b
    The ceding entity shall recognize an asset and the assuming entity shall recognize a liability to the extent that any cash (or other consideration) would be payable from the assuming entity to the ceding entity based on experience to date under the contract.
","snippet":"For contracts that meet all of the conditions described in paragraph 944-20-15-55:\n(a) The ceding entity shall recognize a liability and the assuming entity shall recognize an asset to the extent that the ceding entity h…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fada681e1563a514063d93e5157bb76366730d9acb068d117c5b21719297fc6d","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}},{"citation":"944-20-25-5","para":"25-5","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa002c2fde0efd7b29552595356c884573ecef053222521545688c4a9fbb9c8c","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}},{"citation":"944-20-25-6","para":"25-6","html":"
If either party entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rated contract unless a new contract were entered into, the two contracts are in effect the same contract for purposes of measuring assets and liabilities and shall be accounted for that way.
","snippet":"If either party entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rated contract unless a new contract were entered …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:235b1da43586d3eb231889c66a97b2348726d8826ee7744d08a8639ee8994b23","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91037a3fa096bbfc5303e229f0aafcefa161c5472c6b2777c38040b2a797d624","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4bf310dcbece3cd17576744767538be6f1e0ba4dea1b817cff585da917015e2","downloaded_from":"2026-09-10T02:15:10.222Z","last_downloaded_at":"2026-09-10T02:15:10.222Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479996","source_sha256":"5913c93d39a322624fa7f73858308d38ada4b12069fe467d35a8c001367262ab"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Contracts by Ceding and Assuming Entities","paragraphs":[{"citation":"944-20-30-1","para":"30-1","html":"
Paragraph 944-20-25-6 states that if either party entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rate contract unless a new contract were entered into, the two contracts are in effect the same contract for purposes of measuring assets and liabilities and shall be accounted for that way.
","snippet":"Paragraph 944-20-25-6 states that if either party entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rate contract un…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d31437bc72030c42b806729cc2fecef5c8600471c9850bf34bb6afc2b8366a0b","downloaded_from":"2026-09-10T02:15:13.179Z","last_downloaded_at":"2026-09-10T02:15:13.179Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479967","source_sha256":"bcb53f9da52690c8cd5f7ece7853eb543fdbd2f8b2e6dd1cde9652a12dd07fdb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc6051611acecb409091feddb15b286259482dede61d9b2da11f4c0867d1a531","downloaded_from":"2026-09-10T02:15:13.179Z","last_downloaded_at":"2026-09-10T02:15:13.179Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479967","source_sha256":"bcb53f9da52690c8cd5f7ece7853eb543fdbd2f8b2e6dd1cde9652a12dd07fdb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0155f01b7f3426f6ab4940ae0705066759b85b4090c07a21e1fd85415c5557e6","downloaded_from":"2026-09-10T02:15:13.179Z","last_downloaded_at":"2026-09-10T02:15:13.179Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479967","source_sha256":"bcb53f9da52690c8cd5f7ece7853eb543fdbd2f8b2e6dd1cde9652a12dd07fdb"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":"Short-Duration Contracts","heading":"Multiple-Year Retrospectively Rated Insurance Contracts","paragraphs":[{"citation":"944-20-35-1","para":"35-1","html":"
As indicated in paragraph 944-20-25-2(a), certain amounts are recognized by the insurer and insured to the extent that the insured has an obligation to pay cash (or other consideration) to the insurer that would not have been required absent the experience under the contract.The amount recognized in the current period shall be computed, using a with-and-without method, as the difference between the insured's total contract costs before and after the experience under the contract as of the reporting date, including costs such as premium adjustments, settlement adjustments, and impairments of coverage. The amount of premium expense related to impairments of coverage shall be measured in relation to the original contract terms. Future experience under the contract (that is, future losses and future premiums that would be paid regardless of past experience) shall not be considered in measuring the amount to be recognized.
","snippet":"As indicated in paragraph 944-20-25-2(a), certain amounts are recognized by the insurer and insured to the extent that the insured has an obligation to pay cash (or other consideration) to the insurer that would not have…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78dfd59decafce3d2f756802eed5e8846e542256f472204c53371f578276e856","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-2","para":"35-2","html":"
An insurer shall account for changes in coverage in the same manner as changes in other contract costs. For example, the effects of decreases in coverage without a commensurate reduction in premium shall be recognized as a gain by the insurer when the event causing the decrease in coverage takes place.
","snippet":"An insurer shall account for changes in coverage in the same manner as changes in other contract costs. For example, the effects of decreases in coverage without a commensurate reduction in premium shall be recognized as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f9c84c9668abf456cc5df916d8bbcce5dde6e8db06dfbd67d754f783ad4f2248","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b435812379cb5470943f058177c9c56ccbb03a86a6099792d9f2d991519e39d","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Contracts by Ceding and Assuming Entities","paragraphs":[{"citation":"944-20-35-3","para":"35-3","html":"
The amount recognized under paragraph 944-20-25-4 in the current period shall be computed, using a with-and-without method, as the difference between the ceding entity's total contract costs before and after the experience under the contract as of the reporting date, including costs such as premium adjustments, settlement adjustments, and impairments of coverage.
","snippet":"The amount recognized under paragraph 944-20-25-4 in the current period shall be computed, using a with-and-without method, as the difference between the ceding entity's total contract costs before and after the experien…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1facf9b8938220ac1f5426a345d2d2da2b58a8645d8bbde15753381a07f394af","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-4","para":"35-4","html":"
The amount of premium expense related to impairments of coverage shall be measured in relation to the original contract terms. Future experience under the contract (that is, future losses and future premiums that would be paid regardless of past experience) shall not be considered in measuring the amount to be recognized.
","snippet":"The amount of premium expense related to impairments of coverage shall be measured in relation to the original contract terms. Future experience under the contract (that is, future losses and future premiums that would b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d862d0381bc5884be2aeb127cee8c56a9f145f2aa165a80b508136790f20b77","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-5","para":"35-5","html":"
Example 1 (see paragraph 944-20-55-60) illustrates the application of this guidance.
","snippet":"Example 1 (see paragraph 944-20-55-60) illustrates the application of this guidance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0be4df6da523ebd991c81ed849fcd9520d52fd8ed92a9023307035393ed5c1e3","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-6","para":"35-6","html":"
The amount of the asset to be recognized may be affected by credit risk, and appropriate valuation allowances shall be established for any amounts deemed uncollectible. However, the ceding entity shall not consider the likelihood of future losses in evaluating whether the asset is realizable at the financial reporting date. The effect of those future losses on the asset, if any, shall be recognized in the period of the loss. Potential future unfavorable development on the incurred losses covered by the contract shall not be considered in measuring the asset at the financial reporting date. The relevant recorded claim liability at that date represents the ceding entity's best estimate of the expected ultimate claim liability, and is the liability that must be used in measuring the refundable amount based on contract experience to date.
","snippet":"The amount of the asset to be recognized may be affected by credit risk, and appropriate valuation allowances shall be established for any amounts deemed uncollectible. However, the ceding entity shall not consider the l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22d2879a54aace31c431e0eb4d5ad74142b750fc2f873f624ed89a2958da00d0","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-7","para":"35-7","html":"
Recognizing a smaller asset based on potential unfavorable loss development implies that claim liabilities are understated at the financial reporting date. Accordingly, changes in estimates of claim liabilities shall not be recognized in measuring the related asset until the change in estimate takes place.
","snippet":"Recognizing a smaller asset based on potential unfavorable loss development implies that claim liabilities are understated at the financial reporting date. Accordingly, changes in estimates of claim liabilities shall not…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3303ad6bf9264a9ce2aa46314c4dc76e7dc5811953384878bbd3b244f38b80fc","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-8","para":"35-8","html":"
The remainder of this Subsection addresses the following matters:
  1. a
    Changes in coverage
  2. b
    Loss recognition
  3. c
    With-and-without method
  4. d
    Multiple contingent contractual features
  5. e
    Payment for continuation of contract
  6. f
    Contract cancellation.
","snippet":"The remainder of this Subsection addresses the following matters:\n(a) Changes in coverage\n(b) Loss recognition\n(c) With-and-without method\n(d) Multiple contingent contractual features\n(e) Payment for continuation of cont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f23170701d570b45989d59d99dafc306de0f862df3aa31e7bcfee5bc78d23a11","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-9","para":"35-9","html":"
The ceding entity and the assuming entity shall account for changes in coverage in the same manner as changes in other contract costs.
","snippet":"The ceding entity and the assuming entity shall account for changes in coverage in the same manner as changes in other contract costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:774b6cf977257f46667901b7884dc408b81ef444f73cfce124c1e1203a6e503d","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-10","para":"35-10","html":"
For example, the effects of decreases in coverage without a commensurate reduction in premium shall be recognized as a loss by the ceding entity and as a gain by the assuming entity when the event causing the decrease in coverage takes place.
","snippet":"For example, the effects of decreases in coverage without a commensurate reduction in premium shall be recognized as a loss by the ceding entity and as a gain by the assuming entity when the event causing the decrease in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1285d74e01f0a6971acf142c29d84bfffd9ae4708b663344ecd803a8580844a0","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-11","para":"35-11","html":"
Changes in either the probability or amount of potential future recoveries are considered a change in coverage. For example, if the contract limit stayed the same, but the ceding entity could not receive any recoveries unless losses for the industry as a whole reached a certain level, coverage has been reduced. What matters is not the specific contract provisions regarding coverage, but whether the probability or amount of potential future recoveries has increased or decreased as a result of those provisions.
","snippet":"Changes in either the probability or amount of potential future recoveries are considered a change in coverage. For example, if the contract limit stayed the same, but the ceding entity could not receive any recoveries u…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ef6e8cff68034be764fbce1d1772e7698a15c8084256e2bdf35140433be3370","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-12","para":"35-12","html":"
Deposit accounting shall not be used to avoid loss recognition that would otherwise be required; for example, if the ceding entity has no future coverage relating to the deposit with the reinsurer and therefore the deposit is not recoverable.
","snippet":"Deposit accounting shall not be used to avoid loss recognition that would otherwise be required; for example, if the ceding entity has no future coverage relating to the deposit with the reinsurer and therefore the depos…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9650faf06e52effa36c13bbed85dc16e7c5b47227787b75df760047664b054c6","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-13","para":"35-13","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bfbca1549af128b215ee3db3dd2e64a48731fde2e422d80ff162403688e8205e","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-14","para":"35-14","html":"
In some circumstances, the ceding entity will be relieved of its obligation if the reinsurer cancels the contract, and only has to pay additional amounts if either:
  1. a
    The contract remains in force.
  2. b
    The ceding entity cancels before the end of the contract term.
Unless the reinsurer has terminated the contract, the ceding entity has an obligation for the additional amounts and must recognize the related liability. The effect of termination, which is to relieve the ceding entity of its liability, shall not be recognized until termination takes place.
","snippet":"In some circumstances, the ceding entity will be relieved of its obligation if the reinsurer cancels the contract, and only has to pay additional amounts if either:\n(a) The contract remains in force.\n(b) The ceding entit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b4f645a56b31d93c0466cd4ad31157d5a415fa9298c00941abb8460659a62510","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-15","para":"35-15","html":"
Cash or other compensation equal to all or part of the positive fund balance received from the reinsurer if the ceding entity's contract continues in force shall be recognized as an asset because the ceding entity controls whether termination takes place and, thus, controls realization of the future economic benefit.
","snippet":"Cash or other compensation equal to all or part of the positive fund balance received from the reinsurer if the ceding entity's contract continues in force shall be recognized as an asset because the ceding entity contro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d5198e2124cca51bd4d2975fe2b1fd2ad9ae7c3658f19eff1d07716ab87434f","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-16","para":"35-16","html":"
Paragraph 944-20-25-6 states that, if either entity entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rate contract unless a new contract were entered into, the two contracts are in effect the same contract for purposes of measuring assets and liabilities and shall be accounted for that way.
","snippet":"Paragraph 944-20-25-6 states that, if either entity entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rate contract …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19e756cdb26427b6dcbebaee619d05d0130ecb0cd091957a247301cbd4a82cf3","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:accd57d3b51becc4035589162832a05081dc071b4007d7ec8cb9963572d85c32","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Contract Terminated by the Ceding Entity","paragraphs":[{"citation":"944-20-35-17","para":"35-17","html":"
The following paragraph applies to contracts having both of the following characteristics:
  1. a
    The ceding entity could terminate the contract before the end of its term.
  2. b
    Termination would change the amounts paid—for example, if terminating the contract would cost less than continuing the contract in force.
","snippet":"The following paragraph applies to contracts having both of the following characteristics:\n(a) The ceding entity could terminate the contract before the end of its term.\n(b) Termination would change the amounts paid—for …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5a5a59c39d0d8f2be3517fa176b077b7d3c55f1d281d03e6b0ee00b5233a8ca","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-18","para":"35-18","html":"
The liability resulting from a contract having the characteristics in the preceding paragraph shall be measured as follows:
  1. a
    If a decision to terminate has been made, the measurement shall be based on an assumption of termination and experience to date.
  2. b
    If a decision to terminate has not been made, the measurement shall be based on the lesser of the following:
    1. 1
      The total incremental cost that would be paid based on the with-and-without calculation assuming experience to date and assuming termination—that is, excluding the effects of future losses and future premiums that would have been paid regardless of experience to date
    2. 2
      The total incremental cost that would be paid based on the with-and-without calculation assuming experience to date and assuming no termination—that is, excluding the effects of future losses and future premiums that would have been paid regardless of experience to date.
","snippet":"The liability resulting from a contract having the characteristics in the preceding paragraph shall be measured as follows:\n(a) If a decision to terminate has been made, the measurement shall be based on an assumption of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:91e6fa26a6910ad12a06f11cb3a55dcf66c3306f5a9eedde3009dbbca54f1abf","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"citation":"944-20-35-19","para":"35-19","html":"
As indicated in paragraph 944-20-35-18, if a decision to terminate a contract has been made, the measurement of the liability shall be based on the assumption of termination and experience to date. Otherwise, the measurement of the liability shall be based on the lesser of the following:
  1. a
    The total incremental cost that would be paid based on the with-and-without method assuming experience to date and assuming termination
  2. b
    The total incremental cost that would be paid based on the with-and-without method assuming experience to date and assuming no termination.
The effects of future losses and future premiums that would have been paid regardless of experience to date shall be excluded from both calculations. Costs associated with the decision not to terminate shall be recognized in the period in which the future coverage is provided because those costs are associated with that future coverage.
","snippet":"As indicated in paragraph 944-20-35-18, if a decision to terminate a contract has been made, the measurement of the liability shall be based on the assumption of termination and experience to date. Otherwise, the measure…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc80ad91f2ab8626165644d6a2fc4ade147e6a91fa5fd240b671e1b7ec9bad6c","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d42dc4aac5ed312dbea1b75cfad5dab93cc863a20b70953040029f0d69529fa8","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b5b64e8dc9e8ca7fc10785105cd62e4835fc4245d10dd62583f8e6b78733e53","downloaded_from":"2026-09-10T02:15:16.265Z","last_downloaded_at":"2026-09-10T02:15:16.265Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479934","source_sha256":"e699e677c7fe7a17e540dbc21f4b5c6195e238a33a276e738396420cc28a008a"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":"Reinsurance Contracts","heading":"Multiple-Year Retrospectively Rated Contracts by Ceding and Assuming Entities","paragraphs":[{"citation":"944-20-40-1","para":"40-1","html":"
Paragraph 944-20-25-6 states that, if either party entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rated contract unless a new contract were entered into, the two contracts are in effect the same contract for purposes of measuring assets and liabilities and shall be accounted for that way.
","snippet":"Paragraph 944-20-25-6 states that, if either party entering into a new contract in consideration for canceling a retrospectively rated contract would not have agreed to cancel the existing retrospectively rated contract …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:168dcd0ccd3064a17f0d5a0fe9bcb96cce8a3a6ebe3debeadf8b66d1868cbe8f","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:add1f398d10d9f736a383a7306595ce5dfee5f277dad1693e61d97bc696723c0","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}},{"block":"Reinsurance Contracts","heading":"Payment from Continuation of Reinsurance Contract","paragraphs":[{"citation":"944-20-40-2","para":"40-2","html":"
If a ceding entity loses an asset recognized under paragraph 944-20-35-15 because it terminates the contract, the loss shall be recognized in the period termination takes place.
","snippet":"If a ceding entity loses an asset recognized under paragraph 944-20-35-15 because it terminates the contract, the loss shall be recognized in the period termination takes place.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fdf6b74be770ce3c43182523e00b64c882e4b2f1e4fa78aeacaa6f1f8a42393b","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09c17516e93d87c51a7e50e3fdfca5a588f2b4973c59861dbae1c9a4af72e40b","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}},{"block":"Reinsurance Contracts","heading":"Assumption Reinsurance","paragraphs":[{"citation":"944-20-40-3","para":"40-3","html":"
Reinsurance contracts that are legal replacements of one insurer by another (often referred to as assumption and novation) extinguish the ceding entity's liability to the policyholder and shall result in removal of related assets and liabilities from the financial statements of the ceding entity.
","snippet":"Reinsurance contracts that are legal replacements of one insurer by another (often referred to as assumption and novation) extinguish the ceding entity's liability to the policyholder and shall result in removal of relat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37ec5816d26d004e2ed6ddf56fc9b4cc6e3190b08a176812278e0ef7a05adc5c","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}},{"citation":"944-20-40-4","para":"40-4","html":"
Reinsurance contracts in which a ceding entity is not relieved of the legal liability to its policyholder shall not result in removal of the related assets and liabilities from the ceding entity's financial statements.
","snippet":"Reinsurance contracts in which a ceding entity is not relieved of the legal liability to its policyholder shall not result in removal of the related assets and liabilities from the ceding entity's financial statements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:77d6042aa72d5a7dd92771b1840cbadf93d9d8a10d1fc388a472881339d5c933","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}},{"citation":"944-20-40-5","para":"40-5","html":"
Whether the liability to the policyholder has been entirely extinguished essentially is a legal question, depending on all of the facts and circumstances. See Section 405-20-40 for guidance for determining if a liability has been extinguished.
","snippet":"Whether the liability to the policyholder has been entirely extinguished essentially is a legal question, depending on all of the facts and circumstances. See Section 405-20-40 for guidance for determining if a liability…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:59b494363f6032380198d24b4e6aecdc7201f3ca84b155bb0b91446b19b62f29","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e167469f2390e680172966e575aeeca176658468d206fad2762d5690aa29d4c7","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:25e5258c0663f00a0b2f1acf31bc9710ed63ec24ca25ebf169b72bcfd8c5d144","downloaded_from":"2026-09-10T02:15:19.568Z","last_downloaded_at":"2026-09-10T02:15:19.568Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479901","source_sha256":"5815fc102a2adea4c81d023f56b83b5740b19eeb93dda3478304e46d61b945ed"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":"Statement of Earnings—Universal Life-Type Contracts","paragraphs":[{"citation":"944-20-45-1","para":"45-1","html":"
Payments to policyholders that represent a return of policyholder balances are not expenses of the insurance entity and shall not be reported as such in the statement of earnings.
","snippet":"Payments to policyholders that represent a return of policyholder balances are not expenses of the insurance entity and shall not be reported as such in the statement of earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7706a8ef3496cb733f0d230f3ef9d4976e5174b93eac9368dbf916b9e71cfed7","downloaded_from":"2026-09-10T02:15:22.645Z","last_downloaded_at":"2026-09-10T02:15:22.645Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479868","source_sha256":"2236a68cbe7c9e72729910b7db46439d19e6695806b9c0204b8964c17eb4578c"}},{"citation":"944-20-45-2","para":"45-2","html":"
Amounts reported as expenses shall include all of the following:
  1. a
    Benefit claims in excess of the related policyholder balances
  2. b
    Expenses of contract administration
  3. c
    Interest accrued to policyholders
  4. d
    Amortization of capitalized acquisition costs (see Subtopic 944-30).
","snippet":"Amounts reported as expenses shall include all of the following:\n(a) Benefit claims in excess of the related policyholder balances\n(b) Expenses of contract administration\n(c) Interest accrued to policyholders\n(d) Amortiz…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d881c0617645f57937bd94291121030ed6aa79107909e42b20fc7c9d93d409d","downloaded_from":"2026-09-10T02:15:22.645Z","last_downloaded_at":"2026-09-10T02:15:22.645Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479868","source_sha256":"2236a68cbe7c9e72729910b7db46439d19e6695806b9c0204b8964c17eb4578c"}},{"citation":"944-20-45-3","para":"45-3","html":"
Various other paragraphs in this Topic address presentation-related matters associated with universal life-type contracts as follows:
  1. a
    Premiums collected—see paragraph 944-605-25-5
  2. b
    Amounts assessed for compensation—see paragraph 944-605-25-6
  3. c
    Amounts assessed against policyholders for initiation or front end fees—see paragraph 944-605-25-5
  4. d
    Unearned revenue—see paragraph 944-605-35-2
  5. e
    Amounts that may be assessed against policyholders in future periods—see paragraph 944-40-30-17
  6. f
    Cash values—see paragraph 944-40-30-18.
","snippet":"Various other paragraphs in this Topic address presentation-related matters associated with universal life-type contracts as follows:\n(a) Premiums collected—see paragraph 944-605-25-5\n(b) Amounts assessed for compensatio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:717fca06d91759157fe82924047f808084b63ffc78b1943553889855348eb064","downloaded_from":"2026-09-10T02:15:22.645Z","last_downloaded_at":"2026-09-10T02:15:22.645Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479868","source_sha256":"2236a68cbe7c9e72729910b7db46439d19e6695806b9c0204b8964c17eb4578c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:780240bf27d389289b8c39eafaaff2ba9b755d824ee4e85382b0985a05a5014a","downloaded_from":"2026-09-10T02:15:22.645Z","last_downloaded_at":"2026-09-10T02:15:22.645Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479868","source_sha256":"2236a68cbe7c9e72729910b7db46439d19e6695806b9c0204b8964c17eb4578c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15cbc8cff263b85cea5582a00c2a9a313c10c7b07e1394e0e2073d1ff230549c","downloaded_from":"2026-09-10T02:15:22.645Z","last_downloaded_at":"2026-09-10T02:15:22.645Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479868","source_sha256":"2236a68cbe7c9e72729910b7db46439d19e6695806b9c0204b8964c17eb4578c"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":"Limited-Payment and Universal Life-Type Contracts","paragraphs":[{"citation":"944-20-50-1","para":"50-1","html":"
For financial statement disclosures about limited-payment and universal life-type contracts, see paragraphs
944-605-50-1 through 50-2
.
","snippet":"For financial statement disclosures about limited-payment and universal life-type contracts, see paragraphs 944-605-50-1 through 50-2.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4bec3807d7f2970069ec9f3197ca07674ce68f293ff8db8952295f4edac2589","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7742de92393945e16824b65659ef7b46301d5a387ebde63c30253752e4e8b166","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"block":"Long-Duration Contracts","heading":"Certain Participating Life Insurance Contracts","paragraphs":[{"citation":"944-20-50-2","para":"50-2","html":"
Disclosure of the specific accounting policy applied to participating life insurance contracts that meet the criteria in paragraph 944-20-15-3 shall be made in accordance with Section 235-10-50.
","snippet":"Disclosure of the specific accounting policy applied to participating life insurance contracts that meet the criteria in paragraph 944-20-15-3 shall be made in accordance with Section 235-10-50.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1d83edcc484114ee09434ab19cb43ba82c9cf0c7cc9e9f6d16ac7eb476cb808","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:abc1ca898699f06d96c0b5a0dccf5109802d5b9f58aede874fd70a37832cec3d","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-20-50-3","para":"50-3","html":"
All insurance entities shall disclose the nature, purpose, and effect of ceded reinsurance transactions on the insurance entity's operations.
","snippet":"All insurance entities shall disclose the nature, purpose, and effect of ceded reinsurance transactions on the insurance entity's operations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a80de5bf995691d45e5b75dd44666e4c3cef2ed33b6cba3b78605b7af1db4e68","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"citation":"944-20-50-4","para":"50-4","html":"
Ceding entities also shall disclose the fact that the insurer is not relieved of its primary obligation to the policyholder in a reinsurance transaction.
","snippet":"Ceding entities also shall disclose the fact that the insurer is not relieved of its primary obligation to the policyholder in a reinsurance transaction.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffe9f8ab7ef071fffbbb37f2120ce67512d9cf9637376e9ff0ba2f64dba87a5e","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"citation":"944-20-50-5","para":"50-5","html":"
Paragraph 944-310-45-6 states that, although amounts recoverable on unasserted claims shall be reported as reinsurance recoverables, details of the amounts comprising reinsurance recoverables may be presented separately.
","snippet":"Paragraph 944-310-45-6 states that, although amounts recoverable on unasserted claims shall be reported as reinsurance recoverables, details of the amounts comprising reinsurance recoverables may be presented separately.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d15ceeca825dcb13a059d09a585c1149b78b0ad3a9a3f61c6d7f7cf4ccaca10","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"citation":"944-20-50-6","para":"50-6","html":"
Separate presentation or disclosure of servicing carrier activity is not precluded.
","snippet":"Separate presentation or disclosure of servicing carrier activity is not precluded.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:27d9dcea63f58caa7996d0dcf52cd49047d30019cf04ba05e808c00889532c1a","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62c6e82ae0c8a53f3c631f636392a882660abb074af19556229c2f102152c160","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"block":"Financial Guarantee Insurance Contracts","heading":null,"paragraphs":[{"citation":"944-20-50-7","para":"50-7","html":"
An insurance entity shall disclose information that enables users of its financial statements to understand the factors affecting the present and future recognition and measurement of financial guarantee insurance contracts.
","snippet":"An insurance entity shall disclose information that enables users of its financial statements to understand the factors affecting the present and future recognition and measurement of financial guarantee insurance contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1e342028d3b4e3f166bf11e6eeba375043c6195616a00e93b78eb5989194908","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8924813184e1c1c730d495d00baf11ec23aacca91981f7e0bac8188a6885b749","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8dfcd6636d1285d9c0479cea4a3cce9b5a66e602535660585a8662281246b353","downloaded_from":"2026-09-10T02:15:25.223Z","last_downloaded_at":"2026-09-10T02:15:25.223Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479838","source_sha256":"e1881f83ed1a13ac8b78b30d2f00779e6ed26668c07f0c443df9040d0bf5af69"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":"Short-Duration Contracts","heading":"Implementation Guidance","paragraphs":[{"citation":"944-20-55-1","para":"55-1","html":"
Examples of short-duration contracts within the scope of the Short-Duration Contracts Subsections of this Subtopic include both of the following:
  1. a
    Most property and liability insurance contracts
  2. b
    Certain term life insurance contracts, such as credit life insurance.
","snippet":"Examples of short-duration contracts within the scope of the Short-Duration Contracts Subsections of this Subtopic include both of the following:\n(a) Most property and liability insurance contracts\n(b) Certain term life …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e41b07bfe794409b56113de79e71e22ecd5a572a9f6d63c88264c3a9ddd9616","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-2","para":"55-2","html":"
Paragraph 944-20-55-5 states that accident and health insurance contracts may be short-duration or long-duration depending on whether the contracts are expected to remain in force for an extended period.
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Examples of long-duration contracts within the scope of the Long-Duration Contracts Subsections of this Subtopic include all of the following:
  1. a
    Whole-life contracts
  2. b
    Guaranteed renewable term life contracts
  3. c
    Endowment contracts
  4. d
    Annuity contracts
  5. e
    Title insurance contracts.
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Title insurance contracts provide protection for an extended period and therefore are considered long-duration contracts.
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Accident and health insurance contracts may be short-duration or long-duration depending on whether the contracts are expected to remain in force for an extended period. For example, individual and group insurance contracts that are noncancelable or guaranteed renewable (renewable at the option of the insured), or collectively renewable (individual contracts within a group are not cancelable), ordinarily are long-duration contracts.
","snippet":"Accident and health insurance contracts may be short-duration or long-duration depending on whether the contracts are expected to remain in force for an extended period. For example, individual and group insurance contra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f17eafe314a339f36abd6b2c89256adfc35797b85e8375e6d432c395845338d5","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-6","para":"55-6","html":"
This implementation guidance discusses the nature of mortality risk.
","snippet":"This implementation guidance discusses the nature of mortality risk.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db06babb47e60ce854c3732126eb5384d7823f0d52ad34136ffb9e37c3342d01","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-7","para":"55-7","html":"
The risk that the guaranteed price of an annuity may prove to be unfavorable to the guaranteeing entity if the annuity is purchased is a price risk not unlike a guaranteed price of any commodity and does not create a mortality risk.
","snippet":"The risk that the guaranteed price of an annuity may prove to be unfavorable to the guaranteeing entity if the annuity is purchased is a price risk not unlike a guaranteed price of any commodity and does not create a mor…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1164d21db640031a197c3707b65d238d661260912f6fc5f691250f3708a584d","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-8","para":"55-8","html":"
A mortality risk does not arise until the purchase provision is executed and the obligation to make life-contingent payments is present in an annuity contract.
","snippet":"A mortality risk does not arise until the purchase provision is executed and the obligation to make life-contingent payments is present in an annuity contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48624540d0ca7f0af373fc4d9b2b95cbfb9bb43ede9d94563b48828961134b0d","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-9","para":"55-9","html":"
A nominal mortality risk—a risk of insignificant amount or of remote probability—is not sufficient to permit that a contract be accounted for as an insurance contract.
","snippet":"A nominal mortality risk—a risk of insignificant amount or of remote probability—is not sufficient to permit that a contract be accounted for as an insurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e55e3fb92b3cbd3de1bcaec9ff7d30c537038660316ab8750d84aee0cb55f5fe","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-10","para":"55-10","html":"
The assets and liabilities related to market value adjusted annuities should be accounted for and reported as general account assets and liabilities because the insurance entity provides a fixed return for a specified period, market value adjusted annuities written through a separate account do not meet the criteria in paragraph 944-80-25-2. Under that paragraph, all investment performance, net of contract fees, must be required to be passed through to the contract holder to qualify for separate account treatment.
","snippet":"The assets and liabilities related to market value adjusted annuities should be accounted for and reported as general account assets and liabilities because the insurance entity provides a fixed return for a specified pe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8621115d371f8a0877543b4c291a077660e23b5cec559341b371995ab39e37c","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-11","para":"55-11","html":"
Under the model described in paragraphs
944-40-25-13 through 25-25
, the liability to be held for market value adjusted annuities is the accrued account balance using the contractually specified rate. The market value adjusted amount generally is available at surrender only and is not available at contract maturity; therefore, the market value adjustment is considered a surrender charge or credit.
","snippet":"Under the model described in paragraphs 944-40-25-13 through 25-25, the liability to be held for market value adjusted annuities is the accrued account balance using the contractually specified rate. The market value adj…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b96393e0f700383b3fdcfa160f353c3e756ecc721a906454fef276e8d6d1fca4","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-12","para":"55-12","html":"
For group participating pension contracts not accounted for under the provisions of Subtopic 815-10, the liability for the contract holder account balance should be based on the fair value of the referenced pool of assets without regard to the accounting under generally accepted accounting principles (GAAP) for the assets in the referenced pool of assets, with any change in the liability recognized through earnings.
","snippet":"For group participating pension contracts not accounted for under the provisions of Subtopic 815-10, the liability for the contract holder account balance should be based on the fair value of the referenced pool of asset…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bbc0843059ca199ed2a7e8b61232bc0a7860155660ab8c6e6c81e64e4675a710","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-13","para":"55-13","html":"
A long-term care benefit should be evaluated and accounted for in accordance with paragraphs
944-20-15-20 through 15-25
,
944-40-25-35 through 25-39
,
944-40-30-20 through 30-24
,
944-40-35-9 through 35-10
,
944-40-35-17 through 35-18
, and
944-605-30-1 through 30-2
.
","snippet":"A long-term care benefit should be evaluated and accounted for in accordance with paragraphs 944-20-15-20 through 15-25, 944-40-25-35 through 25-39, 944-40-30-20 through 30-24, 944-40-35-9 through 35-10, 944-40-35-17 thr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7559b8393e2ca5625bdc6dcf540e4eb6f84fe3d62d9c337df371ff0f8986911f","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-14","para":"55-14","html":"
An earnings protection benefit is a death benefit and should be evaluated and accounted for in accordance with paragraph 944-40-25-25B.
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Paragraph 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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This implementation guidance discusses, for purposes of evaluating whether a contract with a reinsurer transfers risk, what constitutes a contract, which is essentially a question of substance. It may be difficult in some circumstances to determine the boundaries of a contract.
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For instance, the profit-sharing provisions of one contract may refer to experience on other contracts and, therefore, raise the question of whether, in substance, one contract rather than several contracts exist.
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The guidance in the Financial Services—Insurance Topic on reinsurance limits the inconsistency that could result from varying interpretations of the term contract by requiring that features of the contract or other contracts or agreements that directly or indirectly compensate the reinsurer or related reinsurers for losses be considered in evaluating whether a particular contract transfers risk. Therefore, if agreements with the reinsurer or related reinsurers, in the aggregate, do not transfer risk, the individual contracts that make up those agreements also would not be considered to transfer risk, regardless of how they are structured.
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Certain guidance relevant to determining the boundaries of a contract is provided in the accounting literature.
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Paragraph 944-20-15-40 states that provisions of other related contracts may be considered part of the subject contract under certain circumstances.
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Different kinds of exposures combined in a program of reinsurance shall not be evaluated for risk transfer and accounted for together, because that would allow contracts that do not meet the conditions for reinsurance accounting to be accounted for as reinsurance by being designated as part of a program.
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In addition, paragraph 944-20-15-65 refers to the fact that an amendment of a contract may create a new contract.
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The legal form and substance of a reinsurance contract generally will be the same, so that the risks reinsured under a single legal document would constitute a single contract for accounting purposes. However, that may not always be the case. Accordingly, careful judgment may be required to determine the boundaries of a contract for accounting purposes.
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Paragraph 944-20-15-56 states that, if an agreement with a reinsurer consists of both risk transfer and nonrisk transfer coverages that have been combined into a single legal document, those coverages shall be considered separately for accounting purposes.
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This implementation guidance discusses how the guidance on multiple-year retrospectively rated contracts in the Reinsurance Contracts Subsections of this Subtopic is based on the concept that there is a substantive difference between a contract that contains an obligatory retrospective rating provision and one that does not. This distinction derives from Subtopic 450-20, which requires recognition of liabilities (which are defined as present obligations) as of a financial reporting date, but prohibits recognition of losses and expenses that will result from future events. For example, it may be a virtual certainty that an entity will pay employee salaries next year. But because there is no present obligation to pay those salaries, they are not recognized today.
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The guidance on multiple-year retrospectively rated contracts in the Reinsurance Contracts Subsections of this Subtopic does not permit recognition of the effects of retrospective rating provisions unless those provisions are obligatory.
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This implementation guidance addresses circumstances in which the assessment of risk transfer changes after the initial assessment at contract inception.
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Paragraph 944-20-15-43 states that the status of a contract should be determinable at inception and, absent amendment, subsequent changes shall be very rare.
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If the risk of significant loss was not deemed reasonably possible at inception, and a significant loss subsequently occurred, the initial assessment was not necessarily wrong, because remote events do occur. Likewise, once a reasonable possibility of significant loss has been established, such loss need not occur to maintain the contract's status as reinsurance.
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This Subtopic does not preclude reclassification if the initial assessment is later deemed incorrect. However, careful consideration would need to be given to whether the reclassification represents the correction of an error (see Subtopic 250-10).
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This implementation guidance discusses the definition of past insurable events that governs whether reinsurance coverage of short-duration insurance policies is prospective or retroactive. As described in paragraph 944-20-15-34B, the distinction between prospective and retroactive reinsurance is based on whether a contract reinsures future or past insured events covered by the underlying insurance contracts. The form of the reinsurance—whether claims-made or occurrence-based—does not determine whether the reinsurance is prospective or retroactive.
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Most reinsurance contracts covering calendar-year incurred losses combine coverage for insured events that occurred before entering into the reinsurance contract with coverage for future insured events and, therefore, include both prospective and retroactive elements.
","snippet":"Most reinsurance contracts covering calendar-year incurred losses combine coverage for insured events that occurred before entering into the reinsurance contract with coverage for future insured events and, therefore, in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4d65d3dfb86d6192f1f9ce07eec8dc07f814cb4963e3868e88622167a4d96e6b","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-44","para":"55-44","html":"
A contract may be considered to have been substantively entered into even though regulatory approval of that contract has not taken place. The absence of agreement on significant terms, or the intention to establish or amend those terms at a later date based on experience or other factors, generally indicates that the parties to the contract have not entered into a reinsurance contract, but rather have agreed to enter into a reinsurance contract at a future date. If contractual provisions under a contract substantively entered into at a future date cover insurable events before that date, that coverage is retroactive.
","snippet":"A contract may be considered to have been substantively entered into even though regulatory approval of that contract has not taken place. The absence of agreement on significant terms, or the intention to establish or a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:915d345bf102179857e24c7cc35fb87e8c0ac76789b48e861e1c08c2b8db38ed","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-45","para":"55-45","html":"
For purposes of this guidance, assume a reinsurance contract covers losses from asbestos and pollution claims on occurrence-based insurance policies effective during previous periods and for which the reinsurance coverage is triggered by a court interpretation that a loss is covered within the terms of the underlying insurance policies. In this instance, the insured event is the occurrence of loss within the coverage of the underlying insurance contracts, not the finding of a court. Therefore, the fact that the asbestos exposure or pollution is covered under insurance policies effective during prior periods makes the reinsurance coverage in this instance retroactive.
","snippet":"For purposes of this guidance, assume a reinsurance contract covers losses from asbestos and pollution claims on occurrence-based insurance policies effective during previous periods and for which the reinsurance coverag…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95f872a28c1ddddaaf947d798920044079db3ce92eb3c8db720d3a4bf84b781f","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-46","para":"55-46","html":"
This implementation guidance addresses classification of a contract to reinsure short-duration policies entered into after the contract's effective date. The portion of the contract related to the period of time between the effective date of the contract and the date the contract was entered into is retroactive because it covers insured events that occurred before entering into the reinsurance contract.
","snippet":"This implementation guidance addresses classification of a contract to reinsure short-duration policies entered into after the contract's effective date. The portion of the contract related to the period of time between …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ea751c8fbc11d1b84d0d4ee62030e3f12f391386dec918d37f73902e72a632f","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-47","para":"55-47","html":"
This implementation guidance explains that adjustments to future premiums or coverage may affect the accounting for a reinsurance contract. As discussed in paragraph 944-20-15-34B, whenever an adjustment results in a reinsurer providing new or additional coverage for past insurable events, that coverage is retroactive.
","snippet":"This implementation guidance explains that adjustments to future premiums or coverage may affect the accounting for a reinsurance contract. As discussed in paragraph 944-20-15-34B, whenever an adjustment results in a rei…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e239c87e31cb2d0fff85be1756353723e62701b20d3aaf9e11fa1a6c77cc2ee7","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-48","para":"55-48","html":"
For example, if subsequent years' premiums under a multiple accident year contract create additional coverage for previous accident years, the additional coverage is retroactive, even if the original coverage provided in the contract for those accident years was prospective.
","snippet":"For example, if subsequent years' premiums under a multiple accident year contract create additional coverage for previous accident years, the additional coverage is retroactive, even if the original coverage provided in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1320b099616542f6b881e5311e7e380ffd9f90c67d2ced9c9237644a0cf7f440","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-49","para":"55-49","html":"
Likewise, if current losses under a multiple-year contract eliminate coverage in future periods, some or all of the premiums to be paid in those future periods should be charged to the current period.
","snippet":"Likewise, if current losses under a multiple-year contract eliminate coverage in future periods, some or all of the premiums to be paid in those future periods should be charged to the current period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3017449ce43daa0458088be9ae81be1a89753d613b58944e2fe7197de4d1a144","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-50","para":"55-50","html":"
This implementation guidance discusses the application of the scope guidance for reinsurance of short-duration contracts beginning in paragraph 944-20-15-41.
","snippet":"This implementation guidance discusses the application of the scope guidance for reinsurance of short-duration contracts beginning in paragraph 944-20-15-41.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ddff54ff6ceb1b43eaae9b9e9ce8a45f02e669bc76cf449787606f5584d7086","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-51","para":"55-51","html":"
A reasonable possibility of significant loss to the reinsurer does not necessarily indicate underwriting risk has been transferred. The tests are independent and the methods and assumptions used in the significant loss test in paragraph 944-20-15-41(b), such as comparing present value of cash flows to ceded premiums, are not relevant to the other test.
","snippet":"A reasonable possibility of significant loss to the reinsurer does not necessarily indicate underwriting risk has been transferred. The tests are independent and the methods and assumptions used in the significant loss t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7546421d18545587857b68b71eda59ea12a0a5478ae5b1bbaa5f621025517c98","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-52","para":"55-52","html":"
It would be possible to demonstrate the reasonable possibility of significant loss on a contract that does not transfer underwriting risk for two reasons. First, if sufficient timing risk is present, the loss could be generated from timing risk alone. Second, judgments about what is significant and what is reasonably possible could differ.
","snippet":"It would be possible to demonstrate the reasonable possibility of significant loss on a contract that does not transfer underwriting risk for two reasons. First, if sufficient timing risk is present, the loss could be ge…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:060c3f3c72dc95d1d6607101eeafc680436012a1e42e48e2e4f1bf6f9f7f7a16","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-53","para":"55-53","html":"
Some features that can delay timely reimbursement violate the condition in paragraph 944-20-15-41(a)but could still result in the reasonable possibility of significant loss to the reinsurer. Examples are a payment schedule or accumulating retention. Because both the condition in (a) in that paragraph and the condition in (b) in that paragraph must be met, failure to transfer significant timing and underwriting risk is not overcome by the possibility of significant loss to the reinsurer.
","snippet":"Some features that can delay timely reimbursement violate the condition in paragraph 944-20-15-41(a)but could still result in the reasonable possibility of significant loss to the reinsurer. Examples are a payment schedu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffdadd0234872c5acc0cdedbe1763a5e9a608f32b5d4590e27179b71316a3b6b","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-54","para":"55-54","html":"
Paragraph 944-20-15-40 refers to contractual features inherently designed to delay the timing of reimbursement to the ceding entity. Regardless of what a particular feature might be called, paragraphs 944-20-15-41 and 944-20-15-46 state that any feature that can delay timely reimbursement violates the conditions for reinsurance accounting. As indicated in those paragraphs, transfer of insurance risk requires that the reinsurer's payments to the ceding entity depend on and directly vary with the amount and timing of claims settled under the reinsured contracts. Contractual features that can delay timely reimbursement prevent that condition from being met. Therefore, any feature that may affect the timing of the reinsurer's reimbursement to the ceding entity should be closely scrutinized.
","snippet":"Paragraph 944-20-15-40 refers to contractual features inherently designed to delay the timing of reimbursement to the ceding entity. Regardless of what a particular feature might be called, paragraphs 944-20-15-41 and 94…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3367dde0a3c1aba0e4abce64c60a4bd88c26d4431b5c18fc3323d6272dc8b3b4","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-55","para":"55-55","html":"
Under very limited circumstances, the reinsurer need not be exposed to the reasonable possibility of significant loss for a contract to meet the conditions for reinsurance accounting. For example, applying the reasonable possibility of significant loss condition is problematic if the underlying insurance contracts themselves do not result in the reasonable possibility of significant loss to the ceding entity. If the reinsurer has assumed substantially all of the insurance risk in the reinsured portions of the underlying policies, even if that risk does not result in the reasonable possibility of significant loss, the transaction meets the conditions for reinsurance accounting. In this narrow circumstance, the reinsurer's economic position is virtually equivalent to having written the insurance contract directly. The risks retained by the ceding entity are insignificant, so that the reinsurer's exposure to loss is essentially the same as the insurer's. Most commonly, such a situation arises if an individual risk or insurance contract, rather than a group of risks or contracts, is reinsured. The probability of loss from any individual short-duration insurance contract generally is considered to be remote. Therefore, outcomes that would expose the assuming entity to risk of significant loss ordinarily could not be characterized as reasonably possible.
","snippet":"Under very limited circumstances, the reinsurer need not be exposed to the reasonable possibility of significant loss for a contract to meet the conditions for reinsurance accounting. For example, applying the reasonable…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00f9d562a452057a2df8e6deda8b3233964fb010333f5352716722d3daab0160","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-56","para":"55-56","html":"
Assessing the economic position of the reinsurer in relation to that of the ceding entity under paragraph 944-20-15-53may be relatively easy for reinsurance of individual risks or for unlimited-risk quota-share reinsurance, because the premiums and losses on these types of reinsurance generally are the same as the premiums and losses on the reinsured portions of the underlying insurance policies. In other types of reinsurance, determining the reinsurer's net cash flows relative to the insurer is likely to be substantially more difficult. For example, it generally would be difficult to demonstrate that the ceding entity's premiums and losses for a particular layer of insurance are the same as the reinsurer's premiums and losses related to that layer. That paragraph states that, if the economic position of the reinsurer relative to the insurer cannot be determined, the contract would not qualify under the exception in that paragraph.
","snippet":"Assessing the economic position of the reinsurer in relation to that of the ceding entity under paragraph 944-20-15-53may be relatively easy for reinsurance of individual risks or for unlimited-risk quota-share reinsuran…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c86c7f8e51f31411c58406ed2269a1e2c502b0197d7ace6d3c8939f04033e88","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-57","para":"55-57","html":"
A structured settlement transaction that does not legally replace one insurer by another and thereby extinguish the primary insurer's liability to the policyholder is accounted for as reinsurance if the annuity funding the settlement meets the conditions for reinsurance accounting. Otherwise, the transaction is accounted for as a deposit in accordance with paragraph 340-30-05-1.
","snippet":"A structured settlement transaction that does not legally replace one insurer by another and thereby extinguish the primary insurer's liability to the policyholder is accounted for as reinsurance if the annuity funding t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2adb89ba6185a166e0d0913baf7bd06cac8a727a64616faee308aee7f7d481b","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-58","para":"55-58","html":"
A contract does not meet the conditions for reinsurance accounting if features of the reinsurance contract or other contracts or agreements directly or indirectly compensate the reinsurer or related reinsurers for losses. That compensation may take many forms, and an understanding of the substance of the contracts or agreements is required to determine whether the ceding entity has been indemnified against loss or liability relating to insurance risk. For example, contractual features may limit the reinsurer's exposure to insurance risk or delay the reimbursement of claims so that investment income mitigates exposure to insurance risk. Examples of those contractual features, noted in paragraph 944-20-15-40(a) through (b), are not all-inclusive.
","snippet":"A contract does not meet the conditions for reinsurance accounting if features of the reinsurance contract or other contracts or agreements directly or indirectly compensate the reinsurer or related reinsurers for losses…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e2b976f6924b5c305a1cf4b7c14647df23c17478f5cf7dbc2e3b8e226f1474f","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-59","para":"55-59","html":"
This implementation guidance addresses a circumstance in which, under a multiple-year retrospectively rated reinsurance contract, the ceding entity has to make additional payments to the reinsurer, but the ceding entity also receives expanded coverage. The single payment is allocated to the two separate transactions. In one transaction, the ceding entity has acquired an asset by making a payment to the reinsurer in exchange for expanded coverage. In the other, the ceding entity has incurred a loss or liability to the extent that it is reimbursing the reinsurer for past losses. Because a variety of factors may affect the value of reinsurance coverage at any point in time, the most appropriate measure of the value of additional coverage generally is the price of the initial coverage. For example, if coverage of $6.00 was acquired for a $1.00 premium, and the ceding entity would pay $4.00 more for another $6.00 of coverage if a loss occurs, the most relevant measure of the amount of premium that relates to the new coverage would be $1.00. The other $3.00 presumably is a reimbursement for the loss that has been incurred.
","snippet":"This implementation guidance addresses a circumstance in which, under a multiple-year retrospectively rated reinsurance contract, the ceding entity has to make additional payments to the reinsurer, but the ceding entity …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86097a10549ca5a53435ae3e99e7161bc487178a743fad37c8c24b5604e01527","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:445a24b5f6e6c6ea1820ae3656c647018f958a2da60b0971f3e2affa90af60b7","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"block":"Reinsurance Contracts","heading":"Illustrations","paragraphs":[{"citation":"944-20-55-60","para":"55-60","html":"
This Example illustrates the application of the with-and-without method under paragraph 944-20-35-13. This Example assumes all of the following:
  1. a
    The retrospectively rated contract reinsures risks arising from short-duration contracts.
  2. b
    The three-year contract prohibits cancellation during the contract period.
  3. c
    Cash settlement is required upon termination of the contract.
  4. d
    The contract provides for deposit premiums of $1.00 per year for $6.00 of coverage in excess of a stipulated retention.
  5. e
    Coverage is limited to one catastrophic event each year (that is, the ceding entity will not collect more than $6.00 per year from the reinsurer).
  6. f
    If one or more losses occur, the ceding entity owes the reinsurer a single premium adjustment of $4.00 spread proportionately over the remaining contract term.
  7. g
    If the ceding entity incurs a loss of $6.00 in the first year, the results in the fund balance will be negative $5.00 ($1.00 of premium to date less $6.00 of losses to date).
  8. h
    In Years 2 and 3, the ceding entity must pay the assuming entity $3.00 each year ($1.00 of deposit premium and $2.00 of the premium adjustment).
","snippet":"This Example illustrates the application of the with-and-without method under paragraph 944-20-35-13. This Example assumes all of the following:\n(a) The retrospectively rated contract reinsures risks arising from short-d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a717a4c15b79b7f5107c4e5ed52f33a86b767057cab1bf8ff38a4ee7ba71e0e0","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-61","para":"55-61","html":"
Under the with-and-without method, the ceding entity would recognize a liability as the difference between the ceding entity's total contract costs before and after the experience under the contract loss ($4.00).
","snippet":"Under the with-and-without method, the ceding entity would recognize a liability as the difference between the ceding entity's total contract costs before and after the experience under the contract loss ($4.00).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc8116cfc978b94445345f49529af61a21386c12543dfb8de3ee21a86b25e052","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-62","para":"55-62","html":"
This Example illustrates the effect of termination. Assume a ceding entity enters into a three-year contract with an assuming entity.
","snippet":"This Example illustrates the effect of termination. Assume a ceding entity enters into a three-year contract with an assuming entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c924c4b4f511359f73ca9f31c20f785dc28fbbe9c1f4f5cb50ac7796f42f106","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-63","para":"55-63","html":"
If a loss occurs in the first year, the ceding entity is required to pay either of the following:
  1. a
    An additional $2.00 premium adjustment in each subsequent year that the contract is in force
  2. b
    If the ceding entity terminates the contract before the end of the third year, 90% of any remaining premium adjustment.
","snippet":"If a loss occurs in the first year, the ceding entity is required to pay either of the following:\n(a) An additional $2.00 premium adjustment in each subsequent year that the contract is in force\n(b) If the ceding entity …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0259f1f4f7e45ec9f51c22f7995d43a117f7ede7998fee370cea262fe998c16","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"citation":"944-20-55-64","para":"55-64","html":"
Under the guidance in this Subtopic, the ceding entity would recognize a liability at the end of the first year equal to the difference in the total contract costs before and after the loss unless the ceding entity has decided to terminate the contract at that time. In this Example, if the ceding entity decided to terminate the contract, it would recognize the cost of termination ($3.60). Otherwise, it would recognize the lesser of the amount assuming termination ($3.60) or the amount assuming no termination ($4.00).
","snippet":"Under the guidance in this Subtopic, the ceding entity would recognize a liability at the end of the first year equal to the difference in the total contract costs before and after the loss unless the ceding entity has d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:140a046e522baef35b537b741fdf13f3b66d7fbb0d48b49cdebd3b4bc39bd097","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:502e923df8c67237ea22838b83ae77007f0c89651e711bc16522abf7750196f7","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e94b5c26e6d0b6c253abd399d322ddfc0f147dc026a4d3228aaa8e0827f3277","downloaded_from":"2026-09-10T02:15:28.362Z","last_downloaded_at":"2026-09-10T02:15:28.362Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479808","source_sha256":"a9947796470525797f3e3ee65d884d9c8c8f321b2fa5d0df85f60cef9551209f"}},{"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":"944-20-65-1","para":"65-1","html":"
Paragraph superseded on 07/01/2010 after the end of the transition period stated in FASB Statement No. 163, Accounting for Financial Guarantee Insurance Contracts—an interpretation of FASB Statement No. 60.
","snippet":"Paragraph superseded on 07/01/2010 after the end of the transition period stated in FASB Statement No. 163, Accounting for Financial Guarantee Insurance Contracts—an interpretation of FASB Statement No. 60.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b11532c2140d8768fa7a1832143c9a7af6ed385eae204068b7d27688ebafbbb2","downloaded_from":"2026-09-10T02:15:30.760Z","last_downloaded_at":"2026-09-10T02:15:30.760Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479778","source_sha256":"c589f8cdc8c77e0e517987d36e3d4356a02a7c95acf92d0c8e9bbb75eb07be7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6818e4f151c12439c3d9dc644d12445450d8b7e5718cdbae407f092a55476248","downloaded_from":"2026-09-10T02:15:30.760Z","last_downloaded_at":"2026-09-10T02:15:30.760Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479778","source_sha256":"c589f8cdc8c77e0e517987d36e3d4356a02a7c95acf92d0c8e9bbb75eb07be7e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d36380b4e2b0827a06538f6b99cc6e9b98b9f82e1c14fa4cedcfcd8143561250","downloaded_from":"2026-09-10T02:15:30.760Z","last_downloaded_at":"2026-09-10T02:15:30.760Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479778","source_sha256":"c589f8cdc8c77e0e517987d36e3d4356a02a7c95acf92d0c8e9bbb75eb07be7e"}},{"number":"S00","label":"SEC 00 Status","anchor":"sec-00-status","is_sec":true,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-20-S00-1","para":"S00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
944-20-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
944-20-S99-2AmendedAccounting Standards Update No. 2010-0401/15/2010
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n944-20-S99-1 | Amended | Accounting Standards Update No. 2012-03 | 08/27/2012 |\n944-20-S…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:32f721ae7447e8e179e1d7659075074d857dec4dbb2d275a46c986505c23a1d9","downloaded_from":"2026-09-10T02:15:37.433Z","last_downloaded_at":"2026-09-10T02:15:37.433Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479888","source_sha256":"26bc39e14b07e785093e0525d97f861da163293747449a6811f26169b7472f2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a84d33c6f85ef4e813c58971bf348119f201264e5959a52c7cb502b881e134aa","downloaded_from":"2026-09-10T02:15:37.433Z","last_downloaded_at":"2026-09-10T02:15:37.433Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479888","source_sha256":"26bc39e14b07e785093e0525d97f861da163293747449a6811f26169b7472f2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e71e27bbd00ab7603b6be6efd6735d2a5fa344000ef51f87324f2f48b7a9937d","downloaded_from":"2026-09-10T02:15:37.433Z","last_downloaded_at":"2026-09-10T02:15:37.433Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479888","source_sha256":"26bc39e14b07e785093e0525d97f861da163293747449a6811f26169b7472f2a"}},{"number":"S30","label":"SEC 30 Initial Measurement","anchor":"sec-30-initial-measurement","is_sec":true,"groups":[{"block":null,"heading":"Discounting Claims Liabilities Related to Short-Duration Contracts","paragraphs":[{"citation":"944-20-S30-1","para":"S30-1","html":"
See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration insurance contracts.
","snippet":"See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:51e0da71f22b3c82c13e77125d65a237073e694028fa9cebf7fb805c39927f44","downloaded_from":"2026-09-10T02:15:39.545Z","last_downloaded_at":"2026-09-10T02:15:39.545Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479859","source_sha256":"26ee97f5e528fd425399bc44d7faa71f7612ed65e4d18649443d1b19dfaa7001"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3dac1840ea8c238b6c7a72b0519b49d66aae688e0a8c6d46d5e8e39c8ad3965","downloaded_from":"2026-09-10T02:15:39.545Z","last_downloaded_at":"2026-09-10T02:15:39.545Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479859","source_sha256":"26ee97f5e528fd425399bc44d7faa71f7612ed65e4d18649443d1b19dfaa7001"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69ab92097fe1aadd770013deb18fcc4941a80c07a9ba339c887482846d0154d3","downloaded_from":"2026-09-10T02:15:39.545Z","last_downloaded_at":"2026-09-10T02:15:39.545Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479859","source_sha256":"26ee97f5e528fd425399bc44d7faa71f7612ed65e4d18649443d1b19dfaa7001"}},{"number":"S35","label":"SEC 35 Subsequent Measurement","anchor":"sec-35-subsequent-measurement","is_sec":true,"groups":[{"block":null,"heading":"Discounting Claims Liabilities Related to Short-Duration Contracts","paragraphs":[{"citation":"944-20-S35-1","para":"S35-1","html":"
See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration insurance contracts.
","snippet":"See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration insurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:746934ccdd3223f3bdfbbc3111bd87d84b49e07675e804c8caedd81d057fb140","downloaded_from":"2026-09-10T02:15:41.464Z","last_downloaded_at":"2026-09-10T02:15:41.464Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479828","source_sha256":"51f406812c0d26dad4d37fa506cb1ae6033d1740f0a23439618aaaadf93096f6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9eb3c78560afeca4614eead00e15538136118ad03dab8e28c5ffa345a6382062","downloaded_from":"2026-09-10T02:15:41.464Z","last_downloaded_at":"2026-09-10T02:15:41.464Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479828","source_sha256":"51f406812c0d26dad4d37fa506cb1ae6033d1740f0a23439618aaaadf93096f6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f011b1ac2bb4a68382ae5f8eba8015ec6c2c005c151277485e4a85eb198ec223","downloaded_from":"2026-09-10T02:15:41.464Z","last_downloaded_at":"2026-09-10T02:15:41.464Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479828","source_sha256":"51f406812c0d26dad4d37fa506cb1ae6033d1740f0a23439618aaaadf93096f6"}},{"number":"S50","label":"SEC 50 Disclosure","anchor":"sec-50-disclosure","is_sec":true,"groups":[{"block":null,"heading":"Present Value of Future Profits","paragraphs":[{"citation":"944-20-S50-1","para":"S50-1","html":"
See paragraph 944-20-S99-2, SEC Observer Comment: Accounting for the Present Value of Future Profits Resulting from the Acquisition of a Life Insurance Company, for SEC Staff views on disclosures regarding present value of future profit assets.
","snippet":"See paragraph 944-20-S99-2, SEC Observer Comment: Accounting for the Present Value of Future Profits Resulting from the Acquisition of a Life Insurance Company, for SEC Staff views on disclosures regarding present value …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba9f0cbdb7c53e8b128674cc0f7de4341a2a854269e39b601c17ad12e52d37ad","downloaded_from":"2026-09-10T02:15:43.227Z","last_downloaded_at":"2026-09-10T02:15:43.227Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479797","source_sha256":"058318ff4ebc1f3da8deaf5fb91c70407065e01bc4e0d7c6a93e87d9e8c7abf9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ab7376a685c7b95963ebdc65d54c47a93b02105552a78acc526094ac0c0d6f2","downloaded_from":"2026-09-10T02:15:43.227Z","last_downloaded_at":"2026-09-10T02:15:43.227Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479797","source_sha256":"058318ff4ebc1f3da8deaf5fb91c70407065e01bc4e0d7c6a93e87d9e8c7abf9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f7293834c5b51e9a23f09cfdf1ce1f1868f3ebdbc6e2a9d867f0956872e3845f","downloaded_from":"2026-09-10T02:15:43.227Z","last_downloaded_at":"2026-09-10T02:15:43.227Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479797","source_sha256":"058318ff4ebc1f3da8deaf5fb91c70407065e01bc4e0d7c6a93e87d9e8c7abf9"}},{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"944-20-S99-1","para":"S99-1","html":"
The following is the text of SAB Topic 5.N, Discounting by Property-Casualty Insurance Companies.
","snippet":"The following is the text of SAB Topic 5.N, Discounting by Property-Casualty Insurance Companies.\nFacts: A registrant which is an insurance company discounts certain unpaid claims liabilities related to short-duration FN…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ecfc12b4f4dcb7a8e098681126a2e060578e8aeee94a00d30dd099f79dbf973","downloaded_from":"2026-09-10T02:15:47.018Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479735","source_sha256":"6f22b16f0df6b254c2754759dc1d7fb96b6219d653f8b5b43b2c2ea83d617085"}},{"citation":"944-20-S99-2","para":"S99-2","html":"
The following is the text of SEC Observer Comment: Accounting for Intangible Assets Arising from Insurance Contracts Acquired in a Business Combination.
","snippet":"The following is the text of SEC Observer Comment: Accounting for Intangible Assets Arising from Insurance Contracts Acquired in a Business Combination.\nThe SEC staff will require registrants to provide the following dis…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85682a33dfcbec7ff1e08c955f4fe8f59a5abadc96499b2eaaf196dc952c19c7","downloaded_from":"2026-09-10T02:15:47.018Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479735","source_sha256":"6f22b16f0df6b254c2754759dc1d7fb96b6219d653f8b5b43b2c2ea83d617085"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:adb842e33f6809d50e61a541279d46b7ae35991e493046b90c39ee93192274c7","downloaded_from":"2026-09-10T02:15:47.018Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479735","source_sha256":"6f22b16f0df6b254c2754759dc1d7fb96b6219d653f8b5b43b2c2ea83d617085"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:404a8a58b38f92ee212df49ada3a6c5a63f7c42e7702d268f07850dde365326a","downloaded_from":"2026-09-10T02:15:47.018Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479735","source_sha256":"6f22b16f0df6b254c2754759dc1d7fb96b6219d653f8b5b43b2c2ea83d617085"}}],"enrichment":{"summary":"ASC 944-20 sets the framework for insurance accounting based on the nature of the contract rather than the type of entity: contracts are classified at inception as short-duration (fixed short coverage period, insurer can cancel or reprice each period, 944-20-15-7) or long-duration (not subject to unilateral change, services rendered over an extended period, 944-20-15-10), with sub-models for traditional, universal life-type, participating, and financial guarantee contracts. It also defines when a contract with a reinsurer actually transfers insurance risk (significant insurance risk plus reasonable possibility of significant loss, 944-20-15-41) and prescribes recognition and with-and-without measurement for multiple-year retrospectively rated contracts. Contracts lacking indemnification or significant insurance risk are accounted for under the deposit method (340-30) or as investment contracts.","key_points":["Insurance contracts must be classified as short-duration or long-duration depending on whether they are expected to remain in force for an extended period (944-20-15-2, 15-7, 15-10); examples include property/liability and credit life as short-duration and whole-life, guaranteed renewable term, endowment, annuity, and title insurance as long-duration (944-20-55-1, 55-3).","Classification as an investment contract or insurance contract is made at contract inception and is not reassessed during the accumulation phase; if mortality/morbidity risk is nominal (insignificant amount or remote probability) the contract is an investment contract (944-20-15-20 through 15-21), and significance is tested by comparing the present value of expected excess payments to the present value of assessments plus expected investment margin under a range of scenarios (944-20-15-24 through 15-25).","A contract with other-than-nominal mortality/morbidity risk whose fees or benefits are not fixed and guaranteed is a universal life-type contract (944-20-15-22, 15-26); participating or nonguaranteed-premium contracts that are in substance universal life-type are also within that model (944-20-15-27 through 15-30).","Reinsurance of short-duration contracts qualifies for reinsurance accounting only if the reinsurer assumes significant insurance risk (amount and timing of its payments directly vary with claims settled) and it is reasonably possible the reinsurer will realize a significant loss (944-20-15-41), with a narrow 'substantially all' exception when only insignificant risk is retained by the ceding entity (944-20-15-53 through 15-54).","Risk transfer is assessed at contract inception based on all cash flows between the parties discounted at a single reasonable rate (944-20-15-49, 15-51); any amendment beyond trivial changes requires reassessment, and a failed contract is accounted for as a deposit under Subtopic 340-30 (944-20-15-62 through 15-64, 944-20-15-55).","For multiple-year retrospectively rated contracts, an asset or liability is recognized for obligatory retrospective rating provisions created by past experience, measured using a with-and-without method excluding future losses and future premiums payable regardless of experience (944-20-25-2, 25-4, 944-20-35-1, 35-3 through 35-4); deposit accounting may not be used to avoid loss recognition (944-20-25-3, 944-20-35-12).","Reinsurance that legally replaces one insurer with another (assumption and novation) extinguishes the ceding entity's liability and requires derecognition of related assets and liabilities; otherwise the ceding entity keeps them on its balance sheet and must disclose that it is not relieved of its primary obligation (944-20-40-3 through 40-4, 944-20-50-3 through 50-4)."],"categories":["Industry-specific","Recognition","Subsequent measurement","Contingencies and guarantees"],"audience_level":"advanced","student_note":"This subtopic is the gateway to all of ASC 944: get the short- vs. long-duration and insurance- vs. investment-contract classification wrong and every downstream revenue, liability, and DAC conclusion is wrong. The most common misunderstanding is assuming anything labeled 'reinsurance' gets reinsurance accounting—substance controls, and without significant insurance risk plus a reasonable possibility of significant loss to the reinsurer, deposit accounting under 340-30 applies.","related_topics":["944-40","944-605","944-30","340-30","720-20","815-15"],"key_concepts":["short-duration contract","long-duration contract","universal life-type contract","investment contract","risk transfer","reinsurance","multiple-year retrospectively rated contract","financial guarantee insurance"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03d71bd9a4e093c92a2824e83ac46e330e045d471714b2376de78680b3fc89e9","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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Hedging","score":0.8324,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ccbeaadbcf5b1a1da9e1db36e818dd1b8e5e1b3389376555a035c99707bef0d","downloaded_from":"2026-09-10T01:40:24.221Z","last_downloaded_at":"2026-09-10T01:40:44.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"825-944","title":"Financial Services—Insurance","topic_title":"Financial Instruments","score":0.8294,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50a7081a79db33f10f87b77e4d43abe1c5ee86cbd839c49021857d4ffb6c3233","downloaded_from":"2026-09-10T01:45:26.659Z","last_downloaded_at":"2026-09-10T01:45:54.729Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-944","title":"Financial Services—Insurance","topic_title":"Liabilities","score":0.7927,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c46c8a6d7e8fe5253763408e1799c163611d321ef35504d119e287f227550617","downloaded_from":"2026-09-10T00:18:57.648Z","last_downloaded_at":"2026-09-10T00:19:09.841Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-40","title":"Claim Costs and Liabilities for Future Policy Benefits","topic_title":"Financial Services—Insurance","score":0.7903,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db4a51aaa618d92d6abe78e2e4c0297271f9d8cb4f9bb5889d2a76380233a5e3","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 timestamps"}},{"number":"944-30","title":"Acquisition Costs","topic_title":"Financial Services—Insurance","score":0.79,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f63323139447fd01d634afa4f068473803ad6fd92c086b20e5c87851e6768135","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:16:24.166Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"944-10","title":"Overall","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c09d05e43e3fc014cf2e52db2b6370394d7d38b904b835b1a7f016742dac6e6","downloaded_from":"2026-09-10T02:14:24.052Z","last_downloaded_at":"2026-09-10T02:14:54.583Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"944-30","title":"Acquisition Costs","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7450dd92c472432afa3789a28caaaa660a3c53bdd799c40ff8e6829c2e0ad880","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:16:24.166Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e1c1418b9d86542ae64a1cbe61762ca6d2c2c00cd39a0b672f94d9ded3ac35d","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-30","topic":"944","title":"Acquisition Costs","area":"Industry","paragraphs":219,"summary":"ASC 944-30 governs how insurance entities capitalize, amortize, present, and disclose acquisition costs (DAC) for short-duration contracts, long-duration contracts, investment contracts, and reinsurance, plus deferred sales inducements. Only costs \"related directly to the successful acquisition\" of new or renewal contracts may be capitalized (944-30-25-1A) — incremental direct costs, directly related compensation/fringe benefits for underwriting, policy issuance and processing, medical and inspection, and sales force contract selling, plus certain other direct costs and qualifying direct-response advertising. Post-ASU 2018-12, long-duration DAC is amortized on a constant level basis over the expected contract term (944-30-35-3A), and the Internal Replacement Transactions Subsections determine whether a modified/replaced contract is \"substantially unchanged\" (continuation, DAC carried forward) or \"substantially changed\" (extinguishment, DAC written off).","concepts":["deferred acquisition costs","successful efforts capitalization","constant level amortization","direct-response advertising","deferred sales inducements","internal replacement transactions","substantially unchanged contract","integrated vs. nonintegrated contract features"],"categories":["Industry-specific","Initial measurement","Subsequent measurement","Disclosure"],"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":"944-30-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Acquisition CostsAmendedAccounting Standards Update No. 2010-2610/13/2010
Annual Policyholder DividendsSupersededAccounting Standards Update No. 2018-1208/15/2018
Annuitization PhaseSupersededAccounting Standards Update No. 2014-0603/14/2014
Benefit PeriodSupersededAccounting Standards Update No. 2018-1208/15/2018
Contract RateSupersededAccounting 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 Income BenefitAmendedAccounting Standards Update No. 2018-1208/15/2018
Gross PremiumSupersededAccounting Standards Update No. 2018-1208/15/2018
Incremental Direct Cost of Contract AcquisitionAddedAccounting Standards Update No. 2010-2610/13/2010
Investment YieldSupersededAccounting Standards Update No. 2018-1208/15/2018
Involuntary TerminationSupersededAccounting Standards Update No. 2014-0603/14/2014
Market Risk BenefitAddedAccounting Standards Update No. 2018-1208/15/2018
Net Level Premium ReserveSupersededAccounting 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
Sales InducementsAmendedAccounting Standards Update No. 2014-0603/14/2014
TerminationAmendedAccounting Standards Update No. 2014-0603/14/2014
Voluntary TerminationSupersededAccounting Standards Update No. 2014-0603/14/2014
944-30-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-30-15-6AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-25-1SupersededAccounting Standards Update No. 2010-2610/13/2010
944-30-25-1AAmendedAccounting Standards Update No. 2018-0907/16/2018
944-30-25-1AAmendedAccounting Standards Update No. 2014-0905/28/2014
944-30-25-1AAddedAccounting Standards Update No. 2010-2610/13/2010
944-30-25-1AAAddedAccounting Standards Update No. 2014-0905/28/2014
944-30-25-1BAmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-25-1BAddedAccounting Standards Update No. 2010-2610/13/2010
944-30-25-1C through 25-1P
AddedAccounting Standards Update No. 2014-0905/28/2014
944-30-25-1DDAddedAccounting Standards Update No. 2018-0907/16/2018
944-30-25-2AmendedAccounting Standards Update No. 2010-2610/13/2010
944-30-25-3AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-25-6AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-25-8AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-25-8AmendedAccounting Standards Update No. 2015-1006/12/2015
944-30-25-9AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-25-10SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-25-14AmendedAccounting Standards Update No. 2012-0410/01/2012
944-30-30-2AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-1AAmendedAccounting Standards Update No. 2012-0410/01/2012
944-30-35-3AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-3AAmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-3AAddedAccounting Standards Update No. 2012-0410/01/2012
944-30-35-3BAddedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-3CAddedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-4 through 35-17
SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-35-10AmendedAccounting Standards Update No. 2014-0603/14/2014
944-30-35-18 through 35-20
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-18AmendedAccounting Standards Update No. 2014-0603/14/2014
944-30-35-19AmendedAccounting Standards Update No. 2012-0410/01/2012
944-30-35-20AmendedAccounting Standards Update No. 2012-0410/01/2012
944-30-35-21SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-35-22SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-35-22AmendedAccounting Standards Update No. 2012-0410/01/2012
944-30-35-28AmendedAccounting Standards Update No. 2014-0603/14/2014
944-30-35-36AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-38AmendedAccounting Standards Update No. 2014-0603/14/2014
944-30-35-41 through 35-45
SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-35-46 through 35-52
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-53AmendedAccounting Standards Update No. 2012-0410/01/2012
944-30-35-61AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-62SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-35-63AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-35-64AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-40-3AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-50-1AmendedAccounting Standards Update No. 2024-0311/04/2024
944-30-50-1AmendedAccounting Standards Update No. 2010-2610/13/2010
944-30-50-2SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-50-2AAmendedAccounting Standards Update No. 2025-1112/08/2025
944-30-50-2AAddedAccounting Standards Update No. 2018-1208/15/2018
944-30-50-2BAddedAccounting Standards Update No. 2018-1208/15/2018
944-30-50-3SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-50-4AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-1AmendedAccounting Standards Update No. 2010-2610/13/2010
944-30-55-1A through 55-1G
AddedAccounting Standards Update No. 2010-2610/13/2010
944-30-55-1FAmendedAccounting Standards Update No. 2014-0905/28/2014
944-30-55-2AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-3 through 55-6
SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-55-7AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-7AAddedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-7BAddedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-8 through 55-10
SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-55-11 through 55-14
AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-15 through 55-32
SupersededAccounting Standards Update No. 2018-1208/15/2018
944-30-55-36AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-39AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-40AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-56AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-58AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-65AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-66AmendedAccounting Standards Update No. 2018-1208/15/2018
944-30-55-76AmendedAccounting 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| | | |\nAcquisition Costs | Amended | Accounting Standards Update No. 2010-26 | 10/13/2010 |\nAnn…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f064b90bea0ee30814693fdcb88add469329f538ffdd54f6faab581bce50682c","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:15:49.991Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479722","source_sha256":"cd7924d76c9efc33c69fe5fe8c580aab7ad747b073cd5b6e434ff18b94b0bb52"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07d6e318620aae2515079245b9a0e663528f00f4c17d47ca243a44ce247d44b3","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:15:49.991Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479722","source_sha256":"cd7924d76c9efc33c69fe5fe8c580aab7ad747b073cd5b6e434ff18b94b0bb52"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf4cb6f4405318c6c664559699a51f59abd9bcf3e5cc147fa8271a05ff170125","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:15:49.991Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479722","source_sha256":"cd7924d76c9efc33c69fe5fe8c580aab7ad747b073cd5b6e434ff18b94b0bb52"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-30-05-1","para":"05-1","html":"
This Subtopic provides guidance to insurance entities on accounting for and financial reporting of acquisition costs including related considerations for internal replacement transactions. 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
    Internal Replacement Transactions
  5. e
    Reinsurance Contracts.
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The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving short-duration contracts.
","snippet":"The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving short-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a714b3ce8dafb0a26d06fbd8eec27a15536bd0639bbf578dea98cab11dfbb69","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9194d9c13886c9c7327ef2cda8ec5affaf565e24690d4557b469ce1ccfb30ef2","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-30-05-3","para":"05-3","html":"
The Long-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving long-duration contracts.
","snippet":"The Long-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving long-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8449a676e2d34f4e9d8289e006879be1429633a0fa1e9d9c15fa15def47cd57f","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39124f20d5bb90f6358597b43e2c90199341a41f523cc3a06289e0a66ad5ea79","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"block":"Internal Replacement Transactions","heading":null,"paragraphs":[{"citation":"944-30-05-4","para":"05-4","html":"
The Internal Replacement Transactions Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of unamortized acquisition costs in the event of an internal replacement transaction.
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Policyholders often purchase universal life-type contracts as replacements for other insurance contracts issued by the same entity (sometimes referred to as internal replacement transactions). In those cases, the policyholder often uses the cash surrender value of the previous contract to pay an initial lump-sum premium for the new contract.
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The Reinsurance Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving reinsurance contracts.
","snippet":"The Reinsurance Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bfad88ce11303f3a9b5a8c84913c8388c73e7ae67824018a9ed8f1b2564e4e07","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6eb08791aeabe5bb93e455a92e05aefc3b569c3ee0d20ffa05c4febef955953c","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c024772be79a667c4d6b21d149edb8b4a54321099baf7a2ac75c8548f7e8049","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"944-30-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15, with specific entity qualifications noted below.
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The guidance in this Subtopic does not apply to mortgage guaranty insurance entities.
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The Short-Duration 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.
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The guidance in the Short-Duration Contracts Subsections of this Subtopic applies only to short-duration insurance contracts. For guidance on identifying a short-duration insurance contract, see the Short-Duration Contracts Subsection of Section 944-20-15.
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The Long-Duration 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 Long-Duration 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":"sha256:15d30607f88a9a77e95924a284047d3e15120f14c65e3c21c1f6c49acb2d1da9","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4441384e7fc560f746cd07fe0fa0ae5711d9e7d2c11035e96a61e238e0fcf7ab","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"block":"Long-Duration Contracts","heading":"Instruments","paragraphs":[{"citation":"944-30-15-6","para":"15-6","html":"
The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration contracts. For guidance on identifying a long-duration contract, see the Long-Duration Contracts Subsection of Section 944-20-15.
","snippet":"The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration contracts. For guidance on identifying a long-duration contract, see the Long-Duration Contracts Subsection of Sectio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a8aa59a70dc4854569310cd1c7ccac9759f6384362a87293df355049e4b95550","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1e1953ec5f1c46da14d62ca35a69b746be7ea6a62bf4abd7953cfd517a2f8928","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"block":"Internal Replacement Transactions","heading":"Overall Guidance","paragraphs":[{"citation":"944-30-15-7","para":"15-7","html":"
The Internal Replacement Transactions Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications and other considerations noted below.
","snippet":"The Internal Replacement Transactions Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications and other considerations noted b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:faa11606d7c2c7dd631e1ab4be9ceb1276d2880aab12165eabc244b807a40351","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef0540e13ecc5d8fe87e80fc134cb7b0b834c740c5895d25475e86317e589378","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"block":"Internal Replacement Transactions","heading":"Instruments","paragraphs":[{"citation":"944-30-15-8","para":"15-8","html":"
The guidance in the Internal Replacement Transactions Subsections applies to modifications and replacements made to short-duration contracts and long-duration contracts (including those contracts defined as investment contracts).
","snippet":"The guidance in the Internal Replacement Transactions Subsections applies to modifications and replacements made to short-duration contracts and long-duration contracts (including those contracts defined as investment co…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97b6318a029631a0659b31ce22111e698adc97d816d75a873b926b230955c404","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83233f0e892f53fe4241aef767c602fb97dc1b9bfd3a29756564057a3485ea29","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"block":"Internal Replacement Transactions","heading":"Other Considerations","paragraphs":[{"citation":"944-30-15-9","para":"15-9","html":"
For guidance on modifications and exchanges of debt issued by insurance entities, see Subtopic 470-50.
","snippet":"For guidance on modifications and exchanges of debt issued by insurance entities, see Subtopic 470-50.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63c3e170806157bf33178381127320027fad0b03f70cdbee82b434bb363a9a14","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05ab82678e216b69f601504e2c36f82ec9faefd25fb4f99084349b7ed7c49ac3","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"block":"Reinsurance Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"944-30-15-10","para":"15-10","html":"
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:f4e9600cc6629f2d03ab6a993b50d188ac0e71c7a8470a5e440ad4093c71d1bd","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c3ccfcc9ce645cf5943bb27bc0326402a178c98a8f0d07c8daa8d4b8968aa0e3","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"block":"Reinsurance Contracts","heading":"Instruments","paragraphs":[{"citation":"944-30-15-11","para":"15-11","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.
","snippet":"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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4f4b8b324a3f7452de74e2b2290a0bff39d7522dd29b43c063e24fd53910827","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:261afba0038122908b3c97a2a1f4d6bb812dde598f89e92421753bc7272a96cc","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e0473b97162da2a2c49d0de26d55f8cb1db9e9166e60d8c7d81b8174754dd5e","downloaded_from":"2026-09-10T02:15:55.044Z","last_downloaded_at":"2026-09-10T02:15:55.044Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479650","source_sha256":"b98c51d3d507de6071aca7601aea655ad2710fa9a056485d386e7baebc873920"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-30-25-1","para":"25-1","html":"
Paragraph superseded by Accounting Standards Update No. 2010-26.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2010-26.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e78716a92fd494b90718dbefd74bd57034b307a68ed246ace592a63ee00e1b9b","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1A","para":"25-1A","html":"
An insurance entity shall capitalize only the following as acquisition costs related directly to the successful acquisition of new or renewal insurance contracts:
  1. a
    Incremental direct costs of contract acquisition
  2. b
    The portion of the employee's total compensation (excluding any compensation that is capitalized as incremental direct costs of contract acquisition) and payroll-related fringe benefits related directly to time spent performing any of the following acquisition activities for a contract that actually has been acquired:
    1. 1
      Underwriting
    2. 2
      Policy issuance and processing
    3. 3
      Medical and inspection
    4. 4
      Sales force contract selling.
  3. c
    Other costs related directly to the insurer's acquisition activities in (b) that would not have been incurred by the insurance entity had the acquisition contract transaction(s) not occurred.
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2014-09.
","snippet":"An insurance entity shall capitalize only the following as acquisition costs related directly to the successful acquisition of new or renewal insurance contracts:\n(a) Incremental direct costs of contract acquisition\n(b) …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a1a5ddf84b3cb56e88dd92884c65f57d6b7fbb2472cf7833d9fdc2893999fa8c","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1AA","para":"25-1AA","html":"
The costs of direct-response advertising shall be capitalized if both of the following conditions are met:
  1. a
    The primary purpose of the advertising is to elicit sales to customers who could be shown to have responded specifically to the advertising. Paragraph 944-30-25-1D discusses the conditions that must exist in order to conclude that the advertising's purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising.
  2. b
    The direct-response advertising results in probable future benefits. Paragraph 944-30-25-1G discusses the conditions that must exist in order to conclude that direct-response advertising results in probable future benefits.
","snippet":"The costs of direct-response advertising shall be capitalized if both of the following conditions are met:\n(a) The primary purpose of the advertising is to elicit sales to customers who could be shown to have responded s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45c2b266232056abb43b7842baa00d60019f5330a60375b9df577b1bdc4d03f4","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1B","para":"25-1B","html":"
To associate acquisition costs with related premium revenue, for acquisition costs that are charged to expense in proportion to premium revenue recognized under Subtopic 944-605, capitalized acquisition costs shall be allocated by groupings of insurance contracts consistent with the entity's manner of acquiring, servicing, and measuring the profitability of its insurance contracts.
","snippet":"To associate acquisition costs with related premium revenue, for acquisition costs that are charged to expense in proportion to premium revenue recognized under Subtopic 944-605, capitalized acquisition costs shall be al…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfd36ff496761dcad1079187b6a943f96bc670a5d3d7077a48cde90f8b9c2dd8","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:775d2f08e19f72d5e081f42571145dcaf398b52a2882cb0f6bf8052e7868dc56","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Primary Purpose to Elicit Sales to Customers Responding to the Advertising","paragraphs":[{"citation":"944-30-25-1C","para":"25-1C","html":"
As noted in paragraph 944-30-25-1AA(a), the first condition for capitalizing direct-response advertising is that the primary purpose of the advertising is to elicit sales to customers who could be shown to have responded specifically to the advertising.
","snippet":"As noted in paragraph 944-30-25-1AA(a), the first condition for capitalizing direct-response advertising is that the primary purpose of the advertising is to elicit sales to customers who could be shown to have responded…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90fe49231e2ad59fa7f73d1255dae3aea974ca9fb5ecf9818a15f50129940239","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1D","para":"25-1D","html":"
In order to conclude that advertising elicits sales to customers who could be shown to have responded specifically to the advertising, there must be a means of documenting that response, including a record that can identify the name of the customer and the advertising that elicited the direct response. Examples of such documentation include the following:
  1. a
    Files indicating the customer names and the related direct-response advertisement
  2. b
    A coded order form, coupon, or response card, included with an advertisement, indicating the customer name
  3. c
    A log of customers who have made phone calls to a number appearing in an advertisement, linking those calls to the advertisement.
","snippet":"In order to conclude that advertising elicits sales to customers who could be shown to have responded specifically to the advertising, there must be a means of documenting that response, including a record that can ident…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:837eb42505122f12d0af02b8acffaf77a8452c8acc175fddc17cb17753e72ac2","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1DD","para":"25-1DD","html":"
Direct-response advertising activities exclude advertising that, though related to the direct-response advertising, is directed to an audience that could not be shown to have responded specifically to the direct-response advertising. For example, a television commercial announcing that order forms (that are direct-response advertising) soon will be distributed directly to some people in the viewing area would not be a direct-response advertising activity because the television commercial is directed to a broad audience, not all of which could be shown to have responded specifically to the direct-response advertising.
","snippet":"Direct-response advertising activities exclude advertising that, though related to the direct-response advertising, is directed to an audience that could not be shown to have responded specifically to the direct-response…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:805fee41a61f238188d376c4c6f89e4897f5d0bcbacf8ba0411e5fbcd4fdb1a4","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d808d7d0249476479d1fe4f50bb5c1ffa5739700106b7357c371dbde7e8eb542","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Probable Future Benefits of Direct-Response Advertising","paragraphs":[{"citation":"944-30-25-1E","para":"25-1E","html":"
As noted in paragraph 944-30-25-1AA(b), the second condition for capitalizing direct-response advertising is that the direct-response advertising results in probable future benefits.
","snippet":"As noted in paragraph 944-30-25-1AA(b), the second condition for capitalizing direct-response advertising is that the direct-response advertising results in probable future benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c004e8f5ab1e6a1877f9a563b166ecbe274933606f8f429c063d9b5a7e548132","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1F","para":"25-1F","html":"
The probable future benefits of direct-response advertising activities are probable future revenues arising from that advertising in excess of future costs to be incurred in realizing those revenues.
","snippet":"The probable future benefits of direct-response advertising activities are probable future revenues arising from that advertising in excess of future costs to be incurred in realizing those revenues.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3df7a0942ddb4f7e4657024696099f2f8ff0e98b7e5270911915c59006b8a041","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1G","para":"25-1G","html":"
Demonstrating that direct-response advertising will result in future benefits requires persuasive evidence that its effects will be similar to the effects of responses to past direct-response advertising activities of the entity that resulted in future benefits. Such evidence shall include verifiable historical patterns of results for the entity. Attributes to consider in determining whether the responses will be similar include the following:
  1. a
    The demographics of the audience
  2. b
    The method of advertising
  3. c
    The product
  4. d
    The economic conditions.
","snippet":"Demonstrating that direct-response advertising will result in future benefits requires persuasive evidence that its effects will be similar to the effects of responses to past direct-response advertising activities of th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76b915fd55537729462f57aa4988a433e926ebfda4c992230d6a192a1f89b8e5","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1H","para":"25-1H","html":"
Industry statistics would not be considered objective evidence that direct-response advertising will result in future benefits in the absence of the specific entity's operating history. If the entity does not have an operating history for a particular product or service but does have operating histories for other new products or services, statistics for the other products or services may be used if it can be demonstrated that the statistics for the other products or services are likely to be highly correlated to the statistics of the particular product or service being evaluated. For example, test market results for a new product or service may be used to support the view that the results of advertising for current new products or services are likely to be highly correlated with the results of advertising for new products or services previously sold by the entity. In the absence of the expectation of a high degree of correlation, a success rate based on historical ratios of successful products or services to total products or services introduced to the marketplace would not be a sufficient basis for reporting a portion of the costs of current-period advertising as resulting in assets.
","snippet":"Industry statistics would not be considered objective evidence that direct-response advertising will result in future benefits in the absence of the specific entity's operating history. If the entity does not have an ope…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b12ec0fd458fb463f197dda43de1870a1b945f44e3706d1c21353c1aecf5749b","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37f34281b90c1053b4c73fe54e89434551ddaf9417b888eed3470fec8c51f052","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Direct-Response Advertising That Does Not Result in Probable Future Benefits","paragraphs":[{"citation":"944-30-25-1I","para":"25-1I","html":"
Direct-response advertising costs that are not capitalized because it cannot be demonstrated that the direct-response advertising will result in future benefits shall not be retroactively capitalized in subsequent periods if historical evidence in those subsequent periods indicates that the advertising did in fact result in future benefits.
","snippet":"Direct-response advertising costs that are not capitalized because it cannot be demonstrated that the direct-response advertising will result in future benefits shall not be retroactively capitalized in subsequent period…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:035b7694130b3ea256011e39e9ff76353b7de917138c7bb38319342122adca38","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc727191d0264ebfc520822b39fd41c48dedd80a3692b0c180b43a49469b38fb","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Basis of Measurement","paragraphs":[{"citation":"944-30-25-1J","para":"25-1J","html":"
Based on the potential customers and the probable customer response rates, direct-response advertising that is expected to produce future revenues generally is undertaken before the customers' identity is known. Such advertising is undertaken with the expectation that not all targets of the direct-response advertising will provide benefits but that the benefits created by the customers who do respond to the advertising will justify the total advertising costs. Accordingly, the cost of the direct-response advertising directed to all prospective customers, not only the cost related to the portion of the potential customers that are expected to respond to the advertising, shall be used to measure the amounts of such reported assets.
","snippet":"Based on the potential customers and the probable customer response rates, direct-response advertising that is expected to produce future revenues generally is undertaken before the customers' identity is known. Such adv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3301f40064807a25d86e0ec83f15c20909ae41488989b1e7a7945b2282b76dcc","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:52048d181d2000032ccab3f91f512c9f1d6624cfe0d909e6a0afd6f5186de33d","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Period and Extent of Expected Future Benefits","paragraphs":[{"citation":"944-30-25-1K","para":"25-1K","html":"
There is no overriding guidance that would either permit or prohibit reporting the costs of direct-response advertising as assets based on the inclusion of future revenues from renewals or repeat sales. Reporting entities with an established operating history, such as certain entities in subscription businesses, may be able to measure such amounts with the required degree of reliability and, if so, shall report assets based on renewal amounts. The reporting entity must exercise judgment about both of the following:
  1. a
    The existence of the degree of reliability required to determine the probability of renewals
  2. b
    Whether those renewals result from the direct-response advertising being accounted for.
In order to conclude that the renewals result from the direct-response advertising being accounted for, the renewals must not result from significant direct-response advertising that took place subsequent to the direct-response advertising being accounted for.
","snippet":"There is no overriding guidance that would either permit or prohibit reporting the costs of direct-response advertising as assets based on the inclusion of future revenues from renewals or repeat sales. Reporting entitie…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:62fe2147365dfe9c8cb83df9cb317578f5b699eff7569e3c09838c33621c0e5f","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1L","para":"25-1L","html":"
Each significant advertising effort establishes a separate standalone cost pool. Examples of situations in which that required degree of reliability may exist, without significant direct-response advertising subsequent to the direct-response advertising being accounted for, include the following:
  1. a
    The sale of subscriptions may be offered only through direct-response advertising. The entity may have objective evidence that, historically, a quantifiable percentage of subscriptions is renewed at the end of each subscription period without a significant advertising effort. After the subscription is purchased, in what is deemed to be an insignificant advertising effort, renewal subscriptions are offered for sale by mailing a renewal card to those who have subscriptions that will lapse soon. The amount of direct-response advertising reported as assets and amortized in future periods ordinarily would be based on the expected total revenue to be realized over both the initial and the renewal subscription periods.
  2. b
    A series of products, such as pieces in a chess set, may be offered for sale only through direct-response advertising. After the first piece is purchased, the remaining pieces are offered for sale by mailing a response card to those who purchased the first piece in what is deemed to be an insignificant advertising effort. The entity may have objective evidence that, historically, each customer who buys the first piece will buy a quantifiable percentage of the remaining pieces. If each of the pieces is bought separately, the amount of direct-response advertising reported as assets and amortized in future periods ordinarily would be based on total revenue from all sales, including estimated future sales.
If significant marketing efforts are required to generate subsequent revenues through renewal or repeat sales, those subsequent revenues would not qualify as revenues resulting from the direct-response advertising that resulted in the initial sale and initial standalone cost pool. For instance, in the chess set example in (b), if a pamphlet describing the chess set, its monetary and aesthetic value, and the history of the game of chess is sent to those who purchased the first piece, the amount of direct-response advertising reported as assets and amortized in future periods would be based on sales of the first piece rather than on the total of all sales including estimated future sales. However, subsequent direct-response advertising may result in the capitalization of the costs of that subsequent advertising, with its costs accumulated in a standalone cost pool, if the conditions for capitalization in this Subtopic are met.
","snippet":"Each significant advertising effort establishes a separate standalone cost pool. Examples of situations in which that required degree of reliability may exist, without significant direct-response advertising subsequent t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f18e5cf217953e9ef82701d62c3437070bcb699143649684e6150f4e98ae0bf1","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd2a44e379cb15066cdf578d797518597bebf59518ffbdf55be2822e923b9ef7","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Acquisition Costs of Assets","paragraphs":[{"citation":"944-30-25-1M","para":"25-1M","html":"
The costs of materials bought from a supplier in the production of advertising materials shall be reported as costs of assets from direct-response advertising if those materials can be directly attributed to specific direct-response advertising. An example of such costs and activities is the cost of paper bought from a third party used to produce catalogues.
","snippet":"The costs of materials bought from a supplier in the production of advertising materials shall be reported as costs of assets from direct-response advertising if those materials can be directly attributed to specific dir…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3fa511e322fdce2db4cebfb37a521956594cf175d45016354188a57dd12b9cf0","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a1b4c9a00b7e83844d429110678e0153e5ebda1921420ccd796521389a97990","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Tangible Assets Used for Several Advertising Campaigns","paragraphs":[{"citation":"944-30-25-1N","para":"25-1N","html":"
Tangible assets, such as blimps or billboards, may be used for several advertising campaigns. The costs of such assets shall be capitalized.
","snippet":"Tangible assets, such as blimps or billboards, may be used for several advertising campaigns. The costs of such assets shall be capitalized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fde17555c7fac4df3d5846328a86c49909a0068bdac7febce1d4e6f110e1269","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c214a8dff3cbdada9a03e136161d9e4f43ed2db7585e2ee86367d8454518c244","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":null,"heading":"Revenues to Consider When Evaluating Future Benefits","paragraphs":[{"citation":"944-30-25-1O","para":"25-1O","html":"
For purposes of considering the probable future benefits of direct-response advertising, revenues associated with such advertising are as follows:
  1. a
    Primary: Revenues from sales to customers receiving and responding to the direct-response advertising
  2. b
    Secondary: Revenues that are not from sales to customers receiving and responding to the direct-response advertising.
For example, most publishers receive revenue from customers that subscribe to the publications; these subscription revenues are primary revenues. Publishers also receive secondary revenues such as advertisements in the publications (referred to as placement fees). Placement fee revenues are affected by several factors, including the total number of subscribers to the publication and the selling efforts devoted to obtaining the placement fees.
","snippet":"For purposes of considering the probable future benefits of direct-response advertising, revenues associated with such advertising are as follows:\n(a) Primary: Revenues from sales to customers receiving and responding to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf4bd7ae48e5a66cb6e46017aa61014475785aa0d381c6a9ec9be54f5eaf0bc8","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-1P","para":"25-1P","html":"
When determining probable future revenues, those revenues shall be limited to revenues from sales to customers receiving and responding to the direct-response advertising (primary revenues). When evaluating whether the direct-response advertising results in probable future benefits (see paragraph 944-30-25-1AA(b)), probable future benefits shall include only primary revenues.
","snippet":"When determining probable future revenues, those revenues shall be limited to revenues from sales to customers receiving and responding to the direct-response advertising (primary revenues). When evaluating whether the d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:94db38fb7c70c1b284c7f5d8dd1c65b3ff1b480eff67f0c5842a9ce177d6c3e3","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-2","para":"25-2","html":"
Paragraph 944-720-25-2 requires that an insurance entity charge to expense as incurred certain other costs.
","snippet":"Paragraph 944-720-25-2 requires that an insurance entity charge to expense as incurred certain other costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1810df56e57f4271200d8415a22a59a6d1ad8b17018be4ddd6ceb28aafa437ef","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0f7fc68d3dde06427bae5ec1ba8152cc1004c4de364935cfbee2a6a1718ad73","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-30-25-3","para":"25-3","html":"
This guidance does not define the costs to be included in acquisition costs but does describe those that are not eligible to be capitalized.
","snippet":"This guidance does not define the costs to be included in acquisition costs but does describe those that are not eligible to be capitalized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f83545cab4fbb5f02626496582f3874034a29d2ad51a23c01ece957876f21f6","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-4","para":"25-4","html":"
Acquisition costs that have any of the following characteristics shall be considered maintenance and other period costs and be charged to expense in the period incurred:
  1. a
    Acquisition costs that vary in a constant relationship to premiums or insurance in force
  2. b
    Acquisition costs that are recurring in nature
  3. c
    Acquisition costs that tend to be incurred in a level amount from period to period.
","snippet":"Acquisition costs that have any of the following characteristics shall be considered maintenance and other period costs and be charged to expense in the period incurred:\n(a) Acquisition costs that vary in a constant rela…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5399d34f89f4c05cd3f8eef70ddfd6ab688b1883e7af177228f7916f4e2342eb","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-5","para":"25-5","html":"
Costs such as recurring premium taxes and ultimate level commissions, which vary with premium revenue, shall be charged to expense in the periods incurred.
","snippet":"Costs such as recurring premium taxes and ultimate level commissions, which vary with premium revenue, shall be charged to expense in the periods incurred.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd3f5ed9c0b94b6ff05063b8b07dbb89e3ee3312c9e405ff49fc837b4121693f","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6075373cab0db22cdbf8bd6bcf090aaf0aa45b30df705db32ef6797e6812a14e","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":"Long-Duration Contracts","heading":"Sales Inducements","paragraphs":[{"citation":"944-30-25-6","para":"25-6","html":"
Paragraph 944-30-25-7 addresses sales inducements that may be deferrable if the insurance entity can demonstrate that the sales inducement amounts have both of the following characteristics:
  1. a
    The amounts are incremental to amounts the entity credits on similar contracts without sales inducements.
  2. b
    The amounts are higher than the contract's expected ongoing crediting rates for periods after the inducement, as applicable; that is, the crediting rate excluding the inducement should be consistent with assumptions used in contract illustrations and interest-crediting strategies.
Due to the nature of day-one bonuses and persistency bonuses, the criteria in items (a) and (b) generally are met for such sales inducements.
","snippet":"Paragraph 944-30-25-7 addresses sales inducements that may be deferrable if the insurance entity can demonstrate that the sales inducement amounts have both of the following characteristics:\n(a) The amounts are increment…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:49439d67f019a958ae518f0c394bd50039675876593eec064833dab0be3e0e7f","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-7","para":"25-7","html":"
Amounts specified in the preceding paragraph shall be deferred and amortized using the same methodology and assumptions used to amortize capitalized acquisition costs if the sales inducements have both of the following characteristics:
  1. a
    The sales inducements are recognized as part of the liability under paragraph 944-40-25-12.
  2. b
    The sales inducements are explicitly identified in the contract at inception.
","snippet":"Amounts specified in the preceding paragraph shall be deferred and amortized using the same methodology and assumptions used to amortize capitalized acquisition costs if the sales inducements have both of the following c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f7c048f0a2c6a53f37cec3184cc9e45733c5f94ada83cb1ccb9b938f74d8bbc","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ae07d99dfbd20729694fcec2d259d23d4ec0e87380c33ab2a15746611ebd8ca","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":"Long-Duration Contracts","heading":"Limited-Payment Contracts","paragraphs":[{"citation":"944-30-25-8","para":"25-8","html":"
Costs related to the acquisition of new and renewal business that are not capitalized (because they do not meet the criteria for capitalization in paragraphs 944-30-25-1A through 25-1AA) and 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 paragraphs 944-40-30-15 and 944-720-25-2) are period costs that shall be recognized when incurred. Such costs shall not be included in the calculation of net premium used in determining the profit to be deferred on limited-payment contractsbecause the inclusion of such costs in the calculation of net premium would result in their deferral.
","snippet":"Costs related to the acquisition of new and renewal business that are not capitalized (because they do not meet the criteria for capitalization in paragraphs 944-30-25-1A through 25-1AA) and costs that are required to be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea8e250c87f0c0731dedc3c687f16f465367d31282857d36405f09e5abbebf9c","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-9","para":"25-9","html":"
Costs that would be included in the determination of net premium under this Subtopic are policy-related costs that are not primarily related to the acquisition of business (such as termination or settlement costs; see paragraph 944-40-30-15).
","snippet":"Costs that would be included in the determination of net premium under this Subtopic are policy-related costs that are not primarily related to the acquisition of business (such as termination or settlement costs; see pa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a223801b9081e8f6bc152a46ea447bdeeed96200bad246fe1c3ebf03a0911f2","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-10","para":"25-10","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":"sha256:38f3fa3eca5a1b721634362949c64a35a20c032b1375c66dda6811e7e3b7e5a3","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4682cf05e44d488bf99053cdf190c4d243ed71fd4eea24e53b729f5d0c7563d5","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":"Internal Replacement Transactions","heading":null,"paragraphs":[{"citation":"944-30-25-11","para":"25-11","html":"
The guidance applies only to replacements of traditional life insurance contracts by universal life type contracts. If surrender of a life insurance contract is associated with an internal replacement by a universal life-type contract, the entity shall not defer either of the following in connection with the replacement contract:
  1. a
    Unamortized acquisition costs associated with the replaced contract
  2. b
    Any difference between the cash surrender value and the previously recorded liability.
","snippet":"The guidance applies only to replacements of traditional life insurance contracts by universal life type contracts. If surrender of a life insurance contract is associated with an internal replacement by a universal life…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de44b0f21d31031974c7510c1653c8f0927e230184c9eed5fee0aa9d91527b7d","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-12","para":"25-12","html":"
The accounting for other internal replacements shall be based on the circumstances of the transaction.
","snippet":"The accounting for other internal replacements shall be based on the circumstances of the transaction.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc50000adfea428b5fef3f5159707eb5e405afd49efff257ac5982bb45b9d5cf","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a355a91c3181c7ad83cb8e4c79dff317b2372cabeab694eb01d6b9f3f1768815","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-30-25-13","para":"25-13","html":"
The net cost to the assuming entity shall be accounted for as an acquisition cost.
","snippet":"The net cost to the assuming entity shall be accounted for as an acquisition cost.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8bdf66d8ab3a6abe0825fa0d79f2b1f0dff3ac6306acc8e124d06355e17f56c1","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"citation":"944-30-25-14","para":"25-14","html":"
Paragraphs
944-30-25-1A through 25-1B
provide guidance on recognition of acquisition costs.
","snippet":"Paragraphs 944-30-25-1A through 25-1B provide guidance on recognition of acquisition costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21aefb306689985c335e324725c79725805aa3f0ad7d8bf00f8aa1a1a6cd839a","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4eee043ac4c237e4479376a4103bebdd9fa0792fae9add7f6262406fbcda52e4","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c9491759e5d51d79d5b944616091396f6bf41c4420908a84090495f5f81b8c3","downloaded_from":"2026-09-10T02:16:02.838Z","last_downloaded_at":"2026-09-10T02:16:02.838Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479575","source_sha256":"a4264678d8dea93e9259fc77861cf81e7c22694e5863966a181821c0d9ef5f0f"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":"Short-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-30-30-1","para":"30-1","html":"
Paragraph 944-30-35-2 states that, if acquisition costs for short-duration contracts are determined based on a percentage relationship of costs incurred to premiums from contracts issued or renewed for a specified period, the percentage relationship and the period used, once determined, shall be applied to applicable unearned premiums throughout the period of the contracts.
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Incurred acquisition costs for long-duration contracts shall be used in determining acquisition costs to be capitalized. Acquisition costs, including future contract renewal costs, shall not be capitalized or amortized before the incurrence of those costs.
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The Subsections in this Section address acquisition costs and other costs.
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Acquisition costs capitalized under paragraphs
944-30-25-1A through 25-1B
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If acquisition costs for short-duration contracts are determined based on a percentage relationship of costs incurred to premiums from contracts issued or renewed for a specified period, the percentage relationship and the period used, once determined, shall be applied to applicable unearned premiums throughout the period of the contracts.
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Capitalized acquisition costs shall be charged to expense using assumptions consistent with those used in estimating the liability for future policy benefits(or any other related balance) for the corresponding contracts (see Subtopic 944-40), as applicable (for example, terminations). For contracts with accumulation and payout phases, the payout phase shall be viewed as a separate contract under this Topic and shall not be combined with the accumulation phase for amortization of capitalized acquisition costs.
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Acquisition costs capitalized under paragraphs 944-30-25-1A through 25-1AA shall be charged to expense on a constant level basis—either on an individual contract basis or on a grouped contract basis—over the expected term of the related contract(s) as follows:
  1. a
    Individual contracts. Capitalized acquisition costs shall be charged to expense on a straight-line basis.
  2. b
    Grouped contracts. Capitalized acquisition costs shall be charged to expense on a constant-level basis that approximates straight-line amortization on an individual contract basis. Contracts shall be grouped consistent with the grouping used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contracts.
The resulting amortization amount shall not be a function of revenue or profit emergence. The amortization method shall be applied consistently over the expected term of the related contract(s).
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The balance of capitalized acquisition costs shall be reduced for actual experience in excess of expected experience (that is, as a result of unexpected contract terminations). The effect of changes in future estimates (for example, revisions of mortality or lapse assumptions as required in paragraph 944-40-35-5(a)) shall be recognized over the remaining expected contract term as a revision of the future amortization amounts.
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No interest shall accrue on the unamortized balance of capitalized acquisition costs. In determining amortization expense, future deferrable costs shall not be included before the incurrence and capitalization of those costs.
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Paragraph 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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Paragraph superseded by Accounting Standards Update No. 2018-12.
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Sales inducementsdeferred under paragraph 944-30-25-7 shall be amortized using the same methodology and assumptions used to amortize capitalized acquisition costs. No interest shall accrue to the unamortized balance of deferred sales inducements. In determining the amortization expense, future deferrable sales inducements shall not be included before the incurrence and capitalization of those sales inducements. The payout phase is viewed as a separate contract under this Topic and shall not be combined with the accumulation phase for amortization of deferred sales inducements.
","snippet":"Sales inducementsdeferred under paragraph 944-30-25-7 shall be amortized using the same methodology and assumptions used to amortize capitalized acquisition costs. No interest shall accrue to the unamortized balance of d…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f88d0b2f1e92af023e6cbc041deb6d5f7cd96290ef511d8d49aad0655c69edcc","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a032ad26c25655c962c054e792a4e625cf1543e1a6559cd1d85b5125f0d9fb46","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Long-Duration Contracts","heading":"Investment Contracts","paragraphs":[{"citation":"944-30-35-19","para":"35-19","html":"
The amortization method described in paragraphs 944-30-35-3 through 35-3C shall be used to amortize acquisition costs deferred under paragraphs 944-30-25-1A through 25-1AA for investment contracts that include significant surrender charges or that yield significant revenues from sources other than the investment of contract holders' funds.
","snippet":"The amortization method described in paragraphs 944-30-35-3 through 35-3C shall be used to amortize acquisition costs deferred under paragraphs 944-30-25-1A through 25-1AA for investment contracts that include significan…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b551299353af696a77f1c09425858306e91b2152ce5002c3856cc2028fbe0e43","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-20","para":"35-20","html":"
Acquisition costs deferred under paragraphs 944-30-25-1A through 25-1AA for other investment contracts shall be amortized using an accounting method that recognizes costs as expenses at a constant rate applied to net policy liabilities and that is consistent with the interest method under Subtopic 310-20. The incidence of surrenders (if they are probable and can be reasonably estimated) can be anticipated for purposes of determining the amortization period. The rate of amortization shall be adjusted for changes in the incidence of surrenders to be consistent with the handling of principal prepayments under Subtopic 310-20.
","snippet":"Acquisition costs deferred under paragraphs 944-30-25-1A through 25-1AA for other investment contracts shall be amortized using an accounting method that recognizes costs as expenses at a constant rate applied to net pol…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:467487ebb1e4316119559addde5fbbb6f53083e8cbde4952173af3e132f9fcbb","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-21","para":"35-21","html":"
Paragraph 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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Under some methods, the contract liabilities may be calculated net of deferred acquisition costs. In that event, the amounts of deferred acquisition costs and contract liabilities have to be determined separately.
","snippet":"Under some methods, the contract liabilities may be calculated net of deferred acquisition costs. In that event, the amounts of deferred acquisition costs and contract liabilities have to be determined separately.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8f27d624c01f38c39ba5b7f432fdb64d26ca392941736ecfecae20e1f413535","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:97f4013c5c5949d6eea37c38f6bf04125aad09e49a43af0bca140cca548c04e4","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Internal Replacement Transactions","heading":"Overall","paragraphs":[{"citation":"944-30-35-24","para":"35-24","html":"
If an internal replacement (as described in this Subsection) occurs and the rights and obligations of the parties to the contract are substantially unchanged (based on an evaluation of the conditions specified in paragraph 944-30-35-37) from those under the replaced contract, the replacement contract shall be accounted for as a continuation of the replaced contract in accordance with the guidance beginning in paragraph 944-30-35-38.
","snippet":"If an internal replacement (as described in this Subsection) occurs and the rights and obligations of the parties to the contract are substantially unchanged (based on an evaluation of the conditions specified in paragra…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1edf242f052b193e31b939108c5601135a1bfe701760d8eb88391475237c9ecc","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-25","para":"35-25","html":"
If the internal replacement occurs and results in a replacement contract that is substantially changed from the replaced contract, the replaced contract shall be accounted for as extinguished in accordance with the guidance in paragraphs
944-30-40-1 through 40-4
.
","snippet":"If the internal replacement occurs and results in a replacement contract that is substantially changed from the replaced contract, the replaced contract shall be accounted for as extinguished in accordance with the guida…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ae9044301766ea4a5f963da389221a1b1dd4debcce1e233860a6f41ba733901","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-26","para":"35-26","html":"
Modifications (other than partial withdrawals, surrenders, or reductions in coverage [see paragraph 944-30-35-29]) that result from the election by the contract holder of a benefit, feature, right, or coverage that was within the original contract are not internal replacements subject to this guidance as long as all of the following conditions are met:
  1. a
    The election is made in accordance with terms fixed or specified within narrow ranges in the original contract.
  2. b
    The election of the benefit, feature, right, or coverage is not subject to any underwriting.
  3. c
    The insurance entity cannot decline to provide the coverage or adjust the pricing of the benefit, feature, right, or coverage.
  4. d
    The benefit, feature, right, or coverage had been accounted for since the inception of the contract.
","snippet":"Modifications (other than partial withdrawals, surrenders, or reductions in coverage [see paragraph 944-30-35-29]) that result from the election by the contract holder of a benefit, feature, right, or coverage that was w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:212ba0cd461e485d590d5101eb5b0a2f56ec8f2a4b06a5262e1cd3b896e266d3","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-27","para":"35-27","html":"
Examples of (d) in the preceding paragraph include both of the following:
  1. a
    The option to elect the feature is an embedded option within the contract that is required to be accounted for under Subtopic 815-15.
  2. b
    The existence of the option to elect a feature was assessed in the classification of and accounting for the contract, such as the classification of the contract as an insurance contract under Section 944-30-15.
","snippet":"Examples of (d) in the preceding paragraph include both of the following:\n(a) The option to elect the feature is an embedded option within the contract that is required to be accounted for under Subtopic 815-15.\n(b) The …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d443c9e37c6e4a8c19985fea6c1b616491a8dbbfad768d269f9c65855e2af54f","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-28","para":"35-28","html":"
The payout phase of a contract is separate and distinct from and shall not be accounted for as a continuation of the accumulation phase, even if annuitization is in accordance with terms fixed in the original contract.
","snippet":"The payout phase of a contract is separate and distinct from and shall not be accounted for as a continuation of the accumulation phase, even if annuitization is in accordance with terms fixed in the original contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d09a7c31ace3695d69e71f93222ee373e643f38f4da6cc564360c74a7b78402","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-29","para":"35-29","html":"
Partial withdrawals, surrenders, or reductions in coverage (for example, reduced face amount on a life insurance contract or higher deductibles on a property casualty contract), as allowed by terms that are fixed and specified at contract inception either in the contract or other information available to the contract holder or, if required by state law or regulation, at terms in effect when the reduction is made for that benefit, feature, right, or coverage, whether or not surrender charges or other termination charges are assessed, are not internal replacements subject to this guidance, as long as there are no reunderwriting or other modifications to the contract, at that time, that would require evaluation under paragraph 944-30-35-37.
","snippet":"Partial withdrawals, surrenders, or reductions in coverage (for example, reduced face amount on a life insurance contract or higher deductibles on a property casualty contract), as allowed by terms that are fixed and spe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1a587dc961a855cf6d7b463226b11246743f11b84cf2e40939aeed671d3ad46","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:546424e694f31b1cb23ccded2f1d52509750c6fb4324248dc4b1b57c6c7c87e5","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Internal Replacement Transactions","heading":"Integrated and Nonintegrated Contract Features","paragraphs":[{"citation":"944-30-35-30","para":"35-30","html":"
For long-duration contracts, integrated contract features are those for which the benefits provided by the feature can be determined only in conjunction with the account value or other contract holder balances related to the base contract, and nonintegrated contract features are those for which the determination of benefits provided by the feature is not related to or dependent on the account value or other contract holder balances of the base contract. Underwriting and pricing for nonintegrated contract features typically are executed separately from other components of the contract, and it is inherent in this concept that the premium charged is not in excess of an amount that is commensurate with the incremental insurance coverage provided.
","snippet":"For long-duration contracts, integrated contract features are those for which the benefits provided by the feature can be determined only in conjunction with the account value or other contract holder balances related to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fd3b25bd98951f01c45392b289805f7c3debbb6272689e59863d68fa8d060b96","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-31","para":"35-31","html":"
For short-duration contracts, nonintegrated contract features are those that provide coverage that is underwritten and priced only for that incremental insurance coverage, and do not result in the explicit or implicit reunderwriting or repricing of other components of the contract. It is inherent in this concept that the premium charged is not in excess of an amount that is commensurate with the incremental insurance coverage provided. Additional coverage provided by a nonintegrated contract feature would be considered nonintegrated even though the entire coverage provided by the short-duration contract may be subject to only one deductible or limit in the event of an insured loss. For short-duration contracts, integrated contract features are those where there is explicit or implicit reunderwriting or repricing of existing components of the base contract.
","snippet":"For short-duration contracts, nonintegrated contract features are those that provide coverage that is underwritten and priced only for that incremental insurance coverage, and do not result in the explicit or implicit re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:359177aeffe2b843aaaac235f0890c8970646f1f483d5ba38428caf2405a9e2a","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a700682f01aae2e9b6b9b4a5e388de21a98837936b5021cf2b168a8e317c014","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Internal Replacement Transactions","heading":"Contract Modifications Involving Nonintegrated Contract Features","paragraphs":[{"citation":"944-30-35-32","para":"35-32","html":"
If a contract feature or coverage is nonintegrated, the addition or election of that feature or coverage, in and of itself, does not change the existing base contract and, as a result, further evaluation of the base contract under paragraph 944-30-35-37 is not required.
","snippet":"If a contract feature or coverage is nonintegrated, the addition or election of that feature or coverage, in and of itself, does not change the existing base contract and, as a result, further evaluation of the base cont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00777353b0e12cc7f9b36fcf220cbcb7d41f93465f833cd92852eaa503a43046","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-33","para":"35-33","html":"
The nonintegrated contract feature or coverage shall be accounted for in a manner similar to a separately issued contract.
","snippet":"The nonintegrated contract feature or coverage shall be accounted for in a manner similar to a separately issued contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:457be6d78380b74b87a70ace09bb0c78c6abef904ace8de64928d2061a4e3a52","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-34","para":"35-34","html":"
Subsequent modifications made only to the nonintegrated contract feature or coverage shall be evaluated under paragraphs
944-30-35-26 through 35-37
separately from the base contract, and any deferred acquisition costs related to the nonintegrated contract feature or coverage accounted for accordingly.
","snippet":"Subsequent modifications made only to the nonintegrated contract feature or coverage shall be evaluated under paragraphs 944-30-35-26 through 35-37 separately from the base contract, and any deferred acquisition costs re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:279ad47b04116e5b777c5e4ec9fb46b1dc7720eea40c49bef70ed6527c645464","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-35","para":"35-35","html":"
Subsequent termination of a nonintegrated contract feature or coverage shall be accounted for as an extinguishment of only the balances related to the nonintegrated contract feature or coverage.
","snippet":"Subsequent termination of a nonintegrated contract feature or coverage shall be accounted for as an extinguishment of only the balances related to the nonintegrated contract feature or coverage.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa43c2a3970631c51c549a83928440fb7973b2c23d7d4354fc7d0c4a379c74dc","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f4211b49d6f407a532f7f926c15ac122551fb12348ddfa471c04938fc5022bd","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Internal Replacement Transactions","heading":"Contract Modifications Involving Integrated Contract Features","paragraphs":[{"citation":"944-30-35-36","para":"35-36","html":"
For contract modifications involving integrated contract features or coverages (other than those contract modifications described in paragraphs
944-30-35-26 through 35-29
) the insurance entity shall review the conditions set forth in paragraph 944-30-35-37 to determine whether the contract has changed substantially as a result of the modification. As a result of that review, either of the following actions shall be taken:
  1. a
    Continuation. A contract modification meeting all of the conditions in paragraph 944-30-35-37 results in a replacement contract that is substantially unchanged from the replaced contract, and shall be accounted for as a continuation of the replaced contract in accordance with paragraphs
    944-30-35-38 through 35-40
    and
    944-30-35-46 through 35-60
    .
  2. b
    Extinguishment. A contract modification that fails any of the conditions in paragraph 944-30-35-37 results in a replacement contract that is substantially changed from the replaced contract, and shall be accounted for as an extinguishment of the replaced contract in accordance with paragraphs
    944-30-40-1 through 40-4
    .
","snippet":"For contract modifications involving integrated contract features or coverages (other than those contract modifications described in paragraphs 944-30-35-26 through 35-29) the insurance entity shall review the conditions…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31b6486f95e1436d58c9045ce5728fcc8d08c1ab3120f9d7cd4bdf881ab16e83","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-37","para":"35-37","html":"
An internal replacement (other than those described in paragraphs
944-30-35-26 through 35-29
) is determined to involve contracts that are substantially unchanged only if all the following conditions exist:
  1. a
    The insured event, risk, or period of coverage of the contract has not changed, as noted by no significant changes in the kind and degree of mortality risk, morbidity risk, or other insurance risk, if any.
  2. b
    The nature of the investment return rights (for example, whether amounts are determined by formulas specified by the contract, pass through of actual performance of referenced investments, or at the discretion of the insurer), if any, between the insurance entity and the contract holder has not changed.
  3. c
    No additional deposit, premium, or charge relating to the original benefit or coverage, in excess of amounts specified or allowed in the original contract, is required to effect the transaction; or if there is a reduction in the original benefit or coverage, the deposit, premiums, or charges are reduced by an amount at least equal to the corresponding reduction in benefits or coverage.
  4. d
    Other than distributions to the contract holder or contract designee or charges related to newly purchased or elected benefits or coverages, there is no net reduction in the contract holder's account value or, for contracts not having an explicit or implicit account value, the cash surrender value, if any.
  5. e
    There is no change in the participation or dividend features of the contract, if any.
  6. f
    There is no change to the amortization method or revenue classification of the contract.
If any of the conditions are not met, an internal replacement is determined to involve a replacement contract that is substantially changed from the replaced contract. Example 2 (see paragraph 944-30-55-33) illustrates the application of this guidance.
","snippet":"An internal replacement (other than those described in paragraphs 944-30-35-26 through 35-29) is determined to involve contracts that are substantially unchanged only if all the following conditions exist:\n(a) The insure…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c334ba7146ac0b53700fd407128a4107cf889c89373fc0a8f84a402372f8430","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-38","para":"35-38","html":"
An internal replacement that is determined to result in a replacement contract that is substantially unchanged from the replaced contract shall be accounted for as a continuation of the replaced contract. However, even if both accumulation and payout phase contracts are investment contracts involving no life contingencies, the payout phase of a contract is separate and distinct from and cannot be accounted for as a continuation of the accumulation phase of the contract. For a short-duration contract, renewal results in a separate and distinct contract that cannot be accounted for as a continuation of the previous contract. Example 1 (see paragraph 944-30-55-12) illustrates the application of this guidance.
","snippet":"An internal replacement that is determined to result in a replacement contract that is substantially unchanged from the replaced contract shall be accounted for as a continuation of the replaced contract. However, even i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2633dd6f3e60007edc2c27fb5ccaa5654b1f127d033e0eea2b30df4c6a6bad3","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-39","para":"35-39","html":"
Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets associated with the replaced contract shall continue to be deferred and amortized or earned in connection with the replacement contract. If the replaced contract was acquired in a business combination, any present value of future profits shall be accounted for in a similar manner.
","snippet":"Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets associated with the replaced contract shall continue to be deferred and amortized or earned in connection with th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ae7ebc1436d094bf5c4da55623372ef45b9be1e820bcd6458854edc62455f1a","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-40","para":"35-40","html":"
Other balances associated with the replaced contract, such as any liability for minimum guaranteed death benefits or guaranteed minimum income benefits, shall be accounted for in a similar manner, that is, as if the replacement contract is a continuation of the replaced contract.
","snippet":"Other balances associated with the replaced contract, such as any liability for minimum guaranteed death benefits or guaranteed minimum income benefits, shall be accounted for in a similar manner, that is, as if the repl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c06c754029ebdad3fd52a305313defa337800d81633a26d3b125ccacf1ffbf51","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-41","para":"35-41","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":"sha256:05f60d4052757539a4d8a581b39d2ee0d240c79330239a2d62b4477db1c0168e","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-42","para":"35-42","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:a8d0e9de38c995550a18edd24f923d2d7308c4b397e420482963734d247f3ce7","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-43","para":"35-43","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":"sha256:69b1ba00a9b917ba108e8b67f6647ab02bedec077b3abb395374140047755042","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-44","para":"35-44","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":"sha256:5503487dd5183ce64d21328e81758c6a087ce867baadfacf64a5eeb97dae7097","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-45","para":"35-45","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:b6eca9fff21df0a753f4aab17619260e63b28ac8bf96dab71188b669f608a998","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-46","para":"35-46","html":"
For long-duration contracts other than investment contracts described in paragraph 944-30-35-48, a replacement contract that is substantially unchanged shall be viewed as a prospective revision of the replaced contract with future amortization of unamortized deferred acquisition costs adjusted, accordingly, on a prospective basis. Under the prospective revision methodology for long-duration contracts other than certain investment contracts, the unamortized deferred acquisition costs balance at the time of replacement is unchanged.
","snippet":"For long-duration contracts other than investment contracts described in paragraph 944-30-35-48, a replacement contract that is substantially unchanged shall be viewed as a prospective revision of the replaced contract w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:371591c84ad9f64f69aa4d5698e1e2683c80f789d989c690bde2eaa9f6410f0e","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-47","para":"35-47","html":"
If it is not reasonably practicable for an insurance entity to account for a contract exchange that has resulted in a replacement contract that is substantially unchanged from the replaced contract, the insurance entity shall determine the balance of unamortized deferred acquisition costs related to the replaced contract to carry forward to the replacement contract and determine future amortization on a prospective basis. The total balance of unamortized deferred acquisition costs before the internal replacement shall be allocated between replaced contracts and contracts remaining in the original book of business based on a reasonable and systematic allocation process.
","snippet":"If it is not reasonably practicable for an insurance entity to account for a contract exchange that has resulted in a replacement contract that is substantially unchanged from the replaced contract, the insurance entity …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02d58f8a8a47d8b8f5f316bdbe4e597fdc0d53234195aef6e630461c8efb4a28","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-48","para":"35-48","html":"
For contracts to which the interest method amortization methodology discussed in Subtopic 310-20 is applied, the replacement contract represents revisions to the cash flows of the replaced contract, and unamortized deferred acquisition costs and deferred sales inducement assets are adjusted accordingly.
","snippet":"For contracts to which the interest method amortization methodology discussed in Subtopic 310-20 is applied, the replacement contract represents revisions to the cash flows of the replaced contract, and unamortized defer…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4397d977433ccb7f5a5c84f289abf45b3eff6864413f836fa30c0edee21a4bdf","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-49","para":"35-49","html":"
The balance of unamortized deferred acquisition costs and other contract-related balances shall be updated based on the most current assumptions at the time of the internal replacement.
","snippet":"The balance of unamortized deferred acquisition costs and other contract-related balances shall be updated based on the most current assumptions at the time of the internal replacement.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3185a90763f1a30bf6b4b9a462c0f64b683700d5fb5f53823369ec79a58cccc8","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-50","para":"35-50","html":"
Any related liability for future policy benefits or market risk benefits for a substantially unchanged contract shall be updated as described in Subtopic 944-40 on claim costs and liabilities for future policy benefits.
","snippet":"Any related liability for future policy benefits or market risk benefits for a substantially unchanged contract shall be updated as described in Subtopic 944-40 on claim costs and liabilities for future policy benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63fead322be866dae992b4f5568bcb1b961ac3fb4549af95c7b3149f3d4b4263","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-51","para":"35-51","html":"
Other balances that are determined based on activity over the life of the contract, such as an additional liability for death or other insurance benefits (which, under this Subtopic, is determined based on assessments and benefit costs) shall be calculated considering the entire revised life of the contract, including activity during the term of the replaced contract.
","snippet":"Other balances that are determined based on activity over the life of the contract, such as an additional liability for death or other insurance benefits (which, under this Subtopic, is determined based on assessments an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07b873d3a7695f59b7d683f6ff150e16123c0b5f5d7d9d3ddb36a274507a988f","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-52","para":"35-52","html":"
A revision to a short-duration contract is viewed as a prospective revision with future recognition of unearned premium and amortization of unamortized deferred acquisition costs adjusted, accordingly, on a prospective basis.
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Consistent with the guidance in paragraphs 944-30-35-1A and 944-605-25-1, unearned premium is recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided, amortization of deferred acquisition costs continues to be recognized in proportion to the premium recognized, and the revised amortization ratio is used prospectively.
","snippet":"Consistent with the guidance in paragraphs 944-30-35-1A and 944-605-25-1, unearned premium is recognized as revenue over the period of the contract in proportion to the amount of insurance protection provided, amortizati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:293e2333a1ccf0035b813067bac586cb22327630c30ddc67a8a5586e2e8d6a78","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-54","para":"35-54","html":"
If the modification is a reduction in benefits with a directly proportionate reduction in premiums, the modification shall result in an immediate proportionate reduction in unamortized deferred acquisition costs rather than a prospective revision.
","snippet":"If the modification is a reduction in benefits with a directly proportionate reduction in premiums, the modification shall result in an immediate proportionate reduction in unamortized deferred acquisition costs rather t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d39e9363cdb385191c89962cb111ba7300d736ea8ba5d0555bf0ce4018a2214","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-55","para":"35-55","html":"
Costs incurred in connection with an internal replacement that results in a replacement contract that is substantially unchanged from the replaced contract shall be accounted for as policy maintenance costs and charged to expense as incurred.
","snippet":"Costs incurred in connection with an internal replacement that results in a replacement contract that is substantially unchanged from the replaced contract shall be accounted for as policy maintenance costs and charged t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e85936ec870a1fed9c0f379ca87a91d915ca06f748ee46b20d1037f6deb2c66c","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-56","para":"35-56","html":"
The portion of renewal commissions paid on the replacement contract that meets the criteria for deferral under this Subtopic, limited to the amount of the future deferrable renewal commissions on the replaced contract that would have met the deferral criteria, continues to be deferrable under those provisions.
","snippet":"The portion of renewal commissions paid on the replacement contract that meets the criteria for deferral under this Subtopic, limited to the amount of the future deferrable renewal commissions on the replaced contract th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9658188a96578b4550e7059bcac9ed3789daa79d1f90be55e2e0ca5d50425683","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-57","para":"35-57","html":"
If an insurance entity assesses a surrender charge on the replaced contract that is offset by an immediate sales inducement to a contract holder on the replacement contract, the insurance entity shall offset any surrender charges assessed against the contract holder's account balance under the replaced contract against any stated immediate sales inducement to determine whether there has been a net reduction in the contract holder's account value in accordance with paragraph 944-30-35-37.
","snippet":"If an insurance entity assesses a surrender charge on the replaced contract that is offset by an immediate sales inducement to a contract holder on the replacement contract, the insurance entity shall offset any surrende…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:442cd8e41212b2270a6aa96aba19516de020c72cca551fe30de668e9ac938c84","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-58","para":"35-58","html":"
The liability for a sales inducement to a contract holder offered in conjunction with an internal replacement of a long-duration contract that is determined to result in a replacement contract that is substantially unchanged from the replaced contract shall be accounted for from the date of its addition to the replacement contract in accordance with the guidance in paragraph 944-40-25-12.
","snippet":"The liability for a sales inducement to a contract holder offered in conjunction with an internal replacement of a long-duration contract that is determined to result in a replacement contract that is substantially uncha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb934bf0759575689f49095fc419bac6c1ab177f778a93bc111ed7a98e6dee4f","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-59","para":"35-59","html":"
Sales inducements provided to the contract holder, whether for investment or universal life-type 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
944-30-35-46 through 35-51
. 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 investment or universal life-type contracts, shall be recognized as part of the liability for policy benefits over the period in which the contract must rema…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:040463101c306c5c197266cba88396fd7892a0bc2cc2a7ce729202784a0d57a4","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-60","para":"35-60","html":"
The criteria in paragraphs
944-30-25-6 through 25-7
for recognition of a related sales inducement asset cannot be satisfied in these circumstances because the sales inducement was not specifically identified in the original contract.
","snippet":"The criteria in paragraphs 944-30-25-6 through 25-7 for recognition of a related sales inducement asset cannot be satisfied in these circumstances because the sales inducement was not specifically identified in the origi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:205c63147118201d77e752edd1184d46aa45d2112ff38a9148cb5978223ba2c8","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ebd83bd3def0358ebc44c61f4be8884ea0576cef159426f50dd70d1816668717","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Internal Replacement Transactions","heading":"Contract Assessments","paragraphs":[{"citation":"944-30-35-61","para":"35-61","html":"
Front-end fees assessed in connection with an internal replacement of a long-duration contract shall be evaluated for deferral in accordance with the guidance in Subtopic 944-605 on revenue recognition.
","snippet":"Front-end fees assessed in connection with an internal replacement of a long-duration contract shall be evaluated for deferral in accordance with the guidance in Subtopic 944-605 on revenue recognition.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be550a3b98f25258dc6eeb990e2031eaba5a873747e9e39013ff8bf1e91b79c0","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"citation":"944-30-35-62","para":"35-62","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":"sha256:7284f292ebac493e0e99f85babede2dbc0c41d336cfd21705cc0f2bc20ca5837","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b11fe56502177c18ad2a195bc5a2f9b228cb7ea92b8766fb55a0108d47ed52d6","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Internal Replacement Transactions","heading":"Recoverability","paragraphs":[{"citation":"944-30-35-63","para":"35-63","html":"
Unamortized deferred acquisition costs for short-duration contracts and the present value of future profits continue to be subject to premium deficiency testing in accordance with the provisions of Subtopic 944-60.
","snippet":"Unamortized deferred acquisition costs for short-duration contracts and the present value of future profits continue to be subject to premium deficiency testing in accordance with the provisions of Subtopic 944-60.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93999a95458c65c2a2d98113b6781fe0c352cf6228f5f26787735372508e7634","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:150dcb3950fac8df465817b31fc65b331dd9796ffd4cf6773a1645280587af4c","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-30-35-64","para":"35-64","html":"
Proceeds from reinsurance transactions that represent recovery of acquisition costs shall reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense in accordance with the amortization guidance in this Section that applies to those unamortized acquisition costs.
","snippet":"Proceeds from reinsurance transactions that represent recovery of acquisition costs shall reduce applicable unamortized acquisition costs in such a manner that net acquisition costs are capitalized and charged to expense…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c37983d8332c7d309a134dcf3d916156bc94fd3c9909f4abfcff312e240b90f","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f8c62a02ab4f494b669093fec95763e3530b6783f15339f8bf9cf15e2bf32f6","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a08064a457c7e03d82025fbfbd04d3eea0a762fb2df9319a203cf2d2305e1605","downloaded_from":"2026-09-10T02:16:07.285Z","last_downloaded_at":"2026-09-10T02:16:07.285Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479520","source_sha256":"699454f393a22ed766cce8c3946ab8a62077c90ef9edbaa2a1515607d797260a"}},{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":"Internal Replacement Transactions","heading":"Contracts That Are Substantially Changed","paragraphs":[{"citation":"944-30-40-1","para":"40-1","html":"
An internal replacement that is determined under paragraph 944-30-35-37 to result in a replacement contract that is substantially changed from the replaced contract shall be accounted for as an extinguishment of the replaced contract.
","snippet":"An internal replacement that is determined under paragraph 944-30-35-37 to result in a replacement contract that is substantially changed from the replaced contract shall be accounted for as an extinguishment of the repl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58913a73930ebbe9e7997795bfb40d39676c88ae800868e72672cd147cb5be3b","downloaded_from":"2026-09-10T02:16:11.022Z","last_downloaded_at":"2026-09-10T02:16:11.022Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479490","source_sha256":"f2bf91757b952c23dc0bcadd7652d5d3042cfb7a9e5cef18e6a0852034f638b3"}},{"citation":"944-30-40-2","para":"40-2","html":"
Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from the replaced contract in an internal replacement transaction that results in a substantially changed contract shall not be deferred in connection with the replacement contract. If the replaced contract was acquired in a purchase business combination, any present value of future profits shall be accounted for in a similar manner.
","snippet":"Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from the replaced contract in an internal replacement transaction that results in a substantially changed contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:db2e69de883b12d06d6af9a3e8caf055783f00f8ef381f40dfcab0950701c7f8","downloaded_from":"2026-09-10T02:16:11.022Z","last_downloaded_at":"2026-09-10T02:16:11.022Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479490","source_sha256":"f2bf91757b952c23dc0bcadd7652d5d3042cfb7a9e5cef18e6a0852034f638b3"}},{"citation":"944-30-40-3","para":"40-3","html":"
Other balances associated with the replaced contract, such as any liability for future policy benefits or market risk benefits, shall be accounted for based on an extinguishment of the replaced contract and issuance of a new contract.
","snippet":"Other balances associated with the replaced contract, such as any liability for future policy benefits or market risk benefits, shall be accounted for based on an extinguishment of the replaced contract and issuance of a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a86b11f90b64bec8993b3b1d9d28c262469f9b01fa3ec9ff23d513fbcf756329","downloaded_from":"2026-09-10T02:16:11.022Z","last_downloaded_at":"2026-09-10T02:16:11.022Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479490","source_sha256":"f2bf91757b952c23dc0bcadd7652d5d3042cfb7a9e5cef18e6a0852034f638b3"}},{"citation":"944-30-40-4","para":"40-4","html":"
Acquisition costs related to the replacement contract shall be evaluated for deferral in accordance with Section 944-30-25.
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Unamortized acquisition costs shall be classified as an asset.
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The amount deferred under paragraph 944-30-25-7 shall be recognized on the statement of financial position as an asset and amortization shall be recognized as a component of benefit expense.
","snippet":"The amount deferred under paragraph 944-30-25-7 shall be recognized on the statement of financial position as an asset and amortization shall be recognized as a component of benefit expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7488861ac6d3b62e2b516826481552cf1bf36bb38915e7b88635100cfb0835fa","downloaded_from":"2026-09-10T02:16:14.846Z","last_downloaded_at":"2026-09-10T02:16:14.846Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479460","source_sha256":"92eec94ab97ab905149239f298fedfe3c08ee5b7ea2b9d25a7663accc3b499a4"}},{"citation":"944-30-45-3","para":"45-3","html":"
Paragraph 944-825-45-1 states that deferred acquisition costs related to investment contracts shall be reported as an asset to be consistent with the guidance in the preceding paragraph.
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Insurance entities shall disclose all of the following in their financial statements:
  1. a
    The nature and type of acquisition costs capitalized
  2. b
    The method of amortizing capitalized acquisition costs
  3. c
    The amount of acquisition costs amortized for the period.
Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:
220-40-65-1Insurance entities shall disclose all of the following in their financial statements:
  1. a
    The nature and type of acquisition costs capitalized
  2. b
    The method of amortizing capitalized acquisition costs
  3. c
    The amount of acquisition costs amortized for the period. See paragraphs
    220-40-50-21 through 50-25
    for additional disclosure requirements.
","snippet":"Insurance entities shall disclose all of the following in their financial statements:\n(a) The nature and type of acquisition costs capitalized\n(b) The method of amortizing capitalized acquisition costs\n(c) The amount of …","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40e777d53582552d148e21a79b0d92a8c9390019029982236278cd02f1dfa2d0","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:871ba49d3e040067183668994a1749e6e1c920490c751b638189902b58ed6734","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-30-50-2","para":"50-2","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:ef1b920f2c25955cd04cad894e040242cc5509b63880050ffc25154327a05e27","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}},{"citation":"944-30-50-2A","para":"50-2A","html":"
For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose the following information about deferred acquisition costs and sales inducements:
  1. a
    The nature of the costs deferred
  2. b
    Information about the inputs, judgments, assumptions, and methods used to determine amortization amounts and changes in those inputs, judgments, and assumptions.
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 the following information about deferred acquisition costs and sales inducements:
  1. a
    The nature of the costs deferred
  2. b
    Information about the inputs, judgments, assumptions, and methods used to determine amortization amounts and changes in those inputs, judgments, and assumptions.
","snippet":"For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose the following information about deferred acquisition costs and sales inducements:\n(a) The nat…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e593c3ab99f953dd995841725121f453c8a6e3c43ee49a004b59c2e88865dd0","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}},{"citation":"944-30-50-2B","para":"50-2B","html":"
For annual and interim reporting periods, an insurance entity shall disclose the following:
  1. a
    A year-to-date disaggregated tabular rollforward of the beginning to the ending balance of unamortized deferred costs—and balances amortized on a basis consistent with deferred acquisition costs, to the extent that such balances are not included in the tabular rollforwards required in Section 944-40-50—disaggregated in a manner that is consistent with the disaggregation of the related liability disclosures
  2. b
    A reconciliation of the disaggregated rollforwards to the aggregate ending carrying amount in the statement of financial position.
","snippet":"For annual and interim reporting periods, an insurance entity shall disclose the following:\n(a) A year-to-date disaggregated tabular rollforward of the beginning to the ending balance of unamortized deferred costs—and ba…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5c47e3e2abf0d0b8d23e55b83a1a491abe73db36fde77ff5a3a7ed489f6ace37","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}},{"citation":"944-30-50-3","para":"50-3","html":"
Paragraph superseded by Accounting Standards Update No. 2018-12.
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The notes to financial statements shall describe the accounting policy applied to internal replacements, including whether or not the entity has availed itself of the alternative application guidance outlined in paragraphs 944-30-35-47 and 944-30-35-49 and, if so, for which types of internal replacement transactions.
","snippet":"The notes to financial statements shall describe the accounting policy applied to internal replacements, including whether or not the entity has availed itself of the alternative application guidance outlined in paragrap…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c79bd3a029539285258362e7579d7c830a254cf5e948214280c7ff330927155d","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}},{"citation":"944-30-50-5","para":"50-5","html":"
Paragraph not used.
","snippet":"Paragraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:313a8c8df7b900618016ffd6abd3b60c4e6239cfef874966a7db698696d8f14a","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cdabe49f6c5f50bc74c1adc69ddb13f045154f3cba3209e56ff78d7eff81f521","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d71db0ab772ef972ea375294cc6a58451a6563faa30351239565e2b6770c0b56","downloaded_from":"2026-09-10T02:16:17.491Z","last_downloaded_at":"2026-09-10T02:16:17.491Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479432","source_sha256":"e51613b47a67a1bc1b781c972d7ea1a5be1e28103d98201e5c004a2ed1edb582"}},{"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":"944-30-55-1","para":"55-1","html":"
Paragraph 944-30-25-1A(a) requires that an insurance entity capitalize incremental direct costs of contract acquisition. Such costs include the following:
  1. a
    An agent or broker commission or bonus for successful contract acquisition or acquisitions.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2010-26.
  3. c
    Medical and inspection fees for successful contract acquisition or acquisitions.
","snippet":"Paragraph 944-30-25-1A(a) requires that an insurance entity capitalize incremental direct costs of contract acquisition. Such costs include the following:\n(a) An agent or broker commission or bonus for successful contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:243c9c43c5ea970fdb9339ce33a13e765c00755d04207737cea4e279580547b9","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-1A","para":"55-1A","html":"
Examples of other costs related directly to the insurer's acquisition activities in paragraph 944-30-25-1A(b) that would not have been incurred by the insurance entity had the acquisition contract transaction(s) not occurred include all of the following:
  1. a
    Reimbursement of costs for air travel, hotel accommodations, automobile mileage, and similar costs incurred by personnel relating to the specified activities
  2. b
    Costs of itemized long-distance telephone calls related to contract underwriting
  3. c
    Reimbursement for mileage and tolls to personnel involved in on-site reviews of individuals before the contract is executed.
","snippet":"Examples of other costs related directly to the insurer's acquisition activities in paragraph 944-30-25-1A(b) that would not have been incurred by the insurance entity had the acquisition contract transaction(s) not occu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:555f187bbde7de756767b6b9cbe67d29463e2f5602f89ab95e2529aa1795d1d4","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-1B","para":"55-1B","html":"
Costs for software dedicated to contract acquisition are not eligible for deferral as deferred acquisition costs under the definition of that term. Such costs are not other costs related to those activities that would not have been incurred but for that contract under the definition of that term.
","snippet":"Costs for software dedicated to contract acquisition are not eligible for deferral as deferred acquisition costs under the definition of that term. Such costs are not other costs related to those activities that would no…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c214665482ebd9f5c38ff9ee1406bf6756bc64f4052b05b8f8136fc02a221e7","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-1C","para":"55-1C","html":"
Payroll-related fringe benefits include any costs incurred for employees as part of the total compensation and benefits program. Examples of such benefits include all of the following:
  1. a
    Payroll taxes
  2. b
    Dental and medical insurance
  3. c
    Group life insurance
  4. d
    Retirement plans
  5. e
    401(k) plans
  6. f
    Stock compensation plans, such as stock options and stock appreciation rights
  7. g
    Overtime meal allowances.
","snippet":"Payroll-related fringe benefits include any costs incurred for employees as part of the total compensation and benefits program. Examples of such benefits include all of the following:\n(a) Payroll taxes\n(b) Dental and me…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:047c3fa078b8d063b278ac1f4b73edecd8bb180d8ae88860f1822d4271b6679d","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-1D","para":"55-1D","html":"
This Subtopic does not specify how costs are to be determined but rather what costs must be deferred. In many instances, standard costing may be used to estimate the costs to be deferred in accordance with this Subtopic. For certain contracts, the cost of acquisition may be similar and standard costing may be appropriate for those contracts, while other contracts may be of such a nature that costs must be identified separately. Insurers may use any one or a combination of methods that will provide adequate information to report financial results in accordance with this Subtopic. Development of a standard costing system will require periodic analysis of variances and, if necessary, adjustment of standard costing estimates. Possible standard costing methods that may be used to measure costs applicable to transactions that have occurred include standard costs, actual costs, job process costs (for example, homogeneous policies), or job order costs (for example, specific contracts).
","snippet":"This Subtopic does not specify how costs are to be determined but rather what costs must be deferred. In many instances, standard costing may be used to estimate the costs to be deferred in accordance with this Subtopic.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d5ec20fa89d736273caa891b72bffe083ace8ede2db65ed8ee0a31959e4001c","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-1E","para":"55-1E","html":"
The successful-efforts accounting notion utilized at an entity-wide level may result in a standard costing system that does not accurately reflect the amount of costs that may be deferred and amortized under this Subtopic. Successful acquisition efforts can be determined as a percentage of each function (for example, application, underwriting, and medical and inspection) and may be based on the percentage, adjusted for idle time and time spent on activities for which the related costs cannot be deferred, of successful and unsuccessful efforts determined for each function.
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All other contract acquisition-related costs, including costs related to activities performed by the insurer for soliciting potential customers (except direct-response advertising capitalized in accordance with paragraph 944-30-25-1AA), market research, training, and administration, should be charged to expense as incurred. Employees' compensation and fringe benefits related to those activities, unsuccessful contract acquisition efforts, and idle time should be charged to expense as incurred. Administrative costs, rent, depreciation, and all other occupancy and equipment costs are considered indirect costs and should be charged to expense as incurred.
","snippet":"All other contract acquisition-related costs, including costs related to activities performed by the insurer for soliciting potential customers (except direct-response advertising capitalized in accordance with paragraph…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6ee21608b07526bc65904ba809cbc3e7f879693ffdfb49b65cca226027d3775","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-1G","para":"55-1G","html":"
The portion of total compensation of executive employees that relates directly to the time spent approving successful contracts may be deferred as acquisition costs under the definition of that term. For example, the amount of compensation allocable to time spent by members of a contract approval committee is a component of acquisition costs.
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This Example illustrates the tabular rollforward that an insurance entity should disclose in its financial statements to meet the requirements of paragraph 944-30-50-2B(a).
  1. a
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
  2. b
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
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This Example illustrates the computation of amortization on a constant level basis. In this Example, a block of long-duration guaranteed-renewable five-year term life insurance contracts are grouped and amortized in proportion to the amount of insurance in force to derive an approximate level amortization amount on an individual contract basis. In 20X1, the insurance entity defers costs totaling $80 and projects the balance of insurance in force over 5 years. The insurance entity would need to include mortality and lapse assumptions to project the balance of insurance in force; however, for ease of illustration, no mortality or lapses are assumed (see paragraph 944-30-55-7B for subsequent changes to the mortality and lapse assumptions).
","snippet":"This Example illustrates the computation of amortization on a constant level basis. In this Example, a block of long-duration guaranteed-renewable five-year term life insurance contracts are grouped and amortized in prop…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc0fae76c119702bd548b86f5b7e05666e74b12922133bdb11bb92d87c126fb4","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-7A","para":"55-7A","html":"
At the beginning of 20X2, the entity incurs an additional $10 of deferrable acquisition costs and computes the amortization rate and expense for 20X2 as follows.
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At the end of 20X2, the entity experienced unexpected contract terminations that resulted in the writeoff of deferred acquisition costs at the end of the reporting period. In addition, the entity updated the expected balance of insurance in force for the remaining periods.
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A flowchart summarizing the accounting model set out in the Internal Replacement Transactions Subsections of this Subtopic follows.
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The following Example illustrates the application of the guidance in the Internal Replacement Transactions Subsections of this Subtopic to an internal replacement transaction that results in a substantially unchanged contract.
  1. a
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  2. b
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This Example assumes the following:
  1. a
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  2. b
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  3. c
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  4. d
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  5. e
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The exchange of the single premium deferred annuity contract for a newer single premium deferred annuity contract in this Example results in the replacement contract being substantially unchanged from the replaced contract, due to the following:
  1. a
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  2. b
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  3. c
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  4. d
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  5. e
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  6. f
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Paragraph superseded by Accounting Standards Update No. 2018-12.
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The following represents implementation guidance for contract modifications and the application of the guidance in Section 944-30-35 for evaluating whether the internal replacements are substantially changed from the replaced contracts. The guidance is based on the specific facts and circumstances; the same conclusions may not be reached for other modifications because of differing facts or circumstances. The following cases represent contract modifications.
","snippet":"The following represents implementation guidance for contract modifications and the application of the guidance in Section 944-30-35 for evaluating whether the internal replacements are substantially changed from the rep…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6cff413ef0f2a576e7b6d4f93db9aeb9cad56fbafd23e13143e58d36938fcaf9","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-34","para":"55-34","html":"
There are several ways in which a contract holder can increase death benefit coverage on a traditional whole life insurance contract.
","snippet":"There are several ways in which a contract holder can increase death benefit coverage on a traditional whole life insurance contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65d7f593963556e5ea47bf0fe41bc008639180fb2b83c620bae1fe59cf75d1ff","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-35","para":"55-35","html":"
An option to purchase additional insurance rider gives the contract holder the right to purchase additional insurance coverage with no additional underwriting. That is, the contract holder can increase the face value of the policy for the same type of insurance coverage and in the same form as that provided by the original contract. The additional premium charged is not in excess of an amount that would be commensurate with the additional insurance coverage obtained. The rider could be included in the original contract or added subsequently to its issuance. This is an example of a nonintegrated contract feature. Once purchased, the benefit under the option to purchase additional insurance rider generally is accounted for as a separate contract.
","snippet":"An option to purchase additional insurance rider gives the contract holder the right to purchase additional insurance coverage with no additional underwriting. That is, the contract holder can increase the face value of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc07973e0aecd527e5d999b339ad51db1e2d30d5eb816ead09e043099461a3dc","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-36","para":"55-36","html":"
The contract holder obtains a second life insurance policy for an incremental face amount, with underwriting required on the new policy only. The original contract remains in force without change. This transaction does not fall within the definition of an internal replacement in Section 944-30-35. The accounting for the original contract remains unchanged and the new contract is accounted for independently of the original contract. Any deferrable acquisition costs associated with the new contract are deferred and amortized in accordance with the guidance in Section 944-30-35, as applicable.
","snippet":"The contract holder obtains a second life insurance policy for an incremental face amount, with underwriting required on the new policy only. The original contract remains in force without change. This transaction does n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7ebf069987fbe0c2d217d01535684feaabe08ad80d8d827856f4d5b45c837ba","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-37","para":"55-37","html":"
The increased face amount (death benefit) of a traditional life insurance contract effectuated through an amendment or rider to the original contract is considered a nonintegrated feature that should be accounted for separately from the existing life insurance contract, provided that the additional premium charged for that incremental insurance coverage is not in excess of an amount that is commensurate with the incremental insurance coverage and does not result in the explicit or implicit reunderwriting or repricing of other components of the contract.
","snippet":"The increased face amount (death benefit) of a traditional life insurance contract effectuated through an amendment or rider to the original contract is considered a nonintegrated feature that should be accounted for sep…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6ca726041f957e95aece05aa3688e654e15064afe4dfe04904b03ba2d337316","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-38","para":"55-38","html":"
Universal life-type contracts are long-duration contracts that can provide either death or annuity benefits and are characterized by one of the following features:
  1. a
    One or more of the amounts assessed by the insurer against the policyholder are not fixed and guaranteed by the terms of the contract.
  2. b
    Amounts that accrue to the benefit of the policyholder are not fixed and guaranteed by the terms of the contract.
  3. c
    Premiums may be varied by the policyholder within contract limits without the consent of the insurer.
","snippet":"Universal life-type contracts are long-duration contracts that can provide either death or annuity benefits and are characterized by one of the following features:\n(a) One or more of the amounts assessed by the insurer a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b2aa715dc1823aa460c4fe938e82983ddd4ad08cbda910960e0d8056e33fc1f","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-39","para":"55-39","html":"
The increase in face amount of a universal life-type contract through an amendment to the original contract is considered an integrated feature as the death benefit under a universal life-type contract is equal to the excess of face amount over contract account value. In this example, only the additional face amount has been underwritten during the contract amendment and the additional premium charged is not in excess of an amount that would be commensurate with the additional insurance coverage obtained. This contract amendment to increase the face amount of a universal life-type contract results in the replacement contract being substantially unchanged from the replaced contract due to the following:
  1. a
    The modification does not result in a change in the insured event, as there is no significant change in the kind and degree of mortality risk. Although the face amount of the contract has increased, it is appropriate in this example to analyze the change in degree of mortality risk by comparing the relationship of the expected cost of the benefit to charges assessed for that benefit, and there was no significant change in this relationship.
  2. b
    There is no change in the nature of the investment return rights from the replaced contract.
  3. c
    There are no changes in the charges related to the original benefits; also, the additional cost of insurance is not in excess of an amount commensurate with the additional insurance coverage obtained.
  4. d
    There is no net decrease in the balance available to the contract holder, except to pay the cost of insurance charge for the increased coverage.
  5. e
    There is no change in the participation or dividend feature of the replaced contract.
  6. f
    The modification does not result in a change to either the amortization method or revenue classification of the contract.
","snippet":"The increase in face amount of a universal life-type contract through an amendment to the original contract is considered an integrated feature as the death benefit under a universal life-type contract is equal to the ex…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a30b2f5bdb7a5ce580ac120e8cd21899ce244feeab3a77343ed0e504527b60ba","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-40","para":"55-40","html":"
A universal-life type contract may contain a no-lapse guarantee feature that provides for continuing coverage of the contract even if the account value drops to a level that cannot cover the contract charges. The contract exchange of a universal life-type contract for a universal life-type contract that contains a no-lapse guarantee results in the replacement contract being substantially changed from the replaced contract because the addition of the no-lapse guarantee changes both the period of coverage of the contract as well as introduces a combination of mortality and investment risk. The analysis would be the same if the change had been achieved through the addition of a no-lapse guarantee rider, as it would be considered an integrated benefit (the benefit is a function of the contract account value) and would need to meet the conditions of paragraph 944-30-35-37. If, however, the contract holder had elected to add a no-lapse guarantee feature that was included in the original contract (and met the specifications of paragraphs
944-30-35-26 through 35-28
), the modification would not be considered an internal replacement.
","snippet":"A universal-life type contract may contain a no-lapse guarantee feature that provides for continuing coverage of the contract even if the account value drops to a level that cannot cover the contract charges. The contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd65a4c0e272759b60536eb67f17b229e1407a11b176cfae4986ce3b91a6a2fd","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-41","para":"55-41","html":"
A second-to-die feature incorporates multiple mortality events within a single contract, as payment to the beneficiary is made, assuming the contract remains in force, only after both insured individuals die. The contract exchange of a universal life-type contract for a universal life-type contract that contains a second-to-die provision results in the replacement contract being substantially changed from the replaced contract because the addition of the second-to-die feature changes the insured event, as now two mortality events must occur for the beneficiary to obtain the proceeds. If the modification were achieved through amendment, endorsement, or rider rather than through a contract exchange, the analysis and conclusion would be the same as for the contract exchange because the second-to-die provision is an integrated feature.
","snippet":"A second-to-die feature incorporates multiple mortality events within a single contract, as payment to the beneficiary is made, assuming the contract remains in force, only after both insured individuals die. The contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aea212a6c70792f7ef2de9f13387ed40db5f6b29cf2e7fb6143f4d133b85e6fd","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-42","para":"55-42","html":"
An automobile insurance contract is a short-duration contract that generally provides coverage for personal injury and automobile damage sustained by the insured and liability to third parties for losses caused by the insured. A newly purchased car being added to an existing automobile policy with no change in the other vehicles covered or the premium related to the other vehicles under the contract results in additional nonintegrated contract coverage that should be accounted for separately from the existing automobile contract coverage, assuming the underwriting and price for coverage of the new car is determined separately and there is no change, explicit or implicit, in the pricing of the base contract.
","snippet":"An automobile insurance contract is a short-duration contract that generally provides coverage for personal injury and automobile damage sustained by the insured and liability to third parties for losses caused by the in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8596dcc32b2c9b9d01f17c6ca4a2925b0450bfd198d3293b0e97c92e09acb81","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-43","para":"55-43","html":"
If one of the existing automobiles under the contract described in paragraph 944-30-55-42 above is removed from the automobile contract, it is considered the extinguishment of nonintegrated contract coverage and should be accounted for as an extinguishment of only the balances related to that nonintegrated coverage. The amount refunded to the contract holder from the change in the coverage is determined in accordance with terms that are fixed in the contract or applicable state law or regulation, and no reunderwriting is required for other coverage. The amount refunded to the contract holder reduces the related unearned revenue liability, and unamortized deferred acquisition costs related to the extinguished nonintegrated contract coverage are eliminated.
","snippet":"If one of the existing automobiles under the contract described in paragraph 944-30-55-42 above is removed from the automobile contract, it is considered the extinguishment of nonintegrated contract coverage and should b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33cb3c36ca0f5086457e3d9d6a55bdb4c6e349a2031817c55c5cbf43e614331d","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-44","para":"55-44","html":"
Assume the automobile insurance contract described in paragraph 944-30-55-42 contains one car and one driver, the existing car is sold and replaced with another car, and coverage is changed through a contract endorsement. For accounting purposes, the original automobile contract is extinguished and coverage for a new automobile contract is established for the driver and the new car. The modification is not a reduction in coverage under paragraph 944-30-35-29, as it is a termination of all coverage in the contract, not a partial termination of coverage as described in paragraph 944-30-35-29. It is common practice to net settle the premium and commission adjustments resulting from this contract modification. For accounting purposes, there are in substance two transactions: the extinguishment of one contract, which is accounted for as a contract extinguishment under paragraphs
944-30-40-1 through 40-4
, and establishment of a new contract.
","snippet":"Assume the automobile insurance contract described in paragraph 944-30-55-42 contains one car and one driver, the existing car is sold and replaced with another car, and coverage is changed through a contract endorsement…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:87253ad85acc36f0808685c948c89056f6bf2359fa2e6bb4c0ac9afe28f18e8e","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-45","para":"55-45","html":"
The addition of a new driver to an existing automobile contract with no other changes in the contract results in additional nonintegrated contract coverage that should be accounted for separately from the existing automobile contract coverage, as the underwriting and price for coverage for the new driver is determined separately.
","snippet":"The addition of a new driver to an existing automobile contract with no other changes in the contract results in additional nonintegrated contract coverage that should be accounted for separately from the existing automo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78d2d0cf6fca24f2ff1806403af328b0f58c44e342a9f9261fad8a199208c7f3","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-46","para":"55-46","html":"
If one of the existing drivers under the contract described in paragraph 944-30-55-44 is removed from the automobile contract, it is the extinguishment of nonintegrated contract coverage and should be accounted for as an extinguishment of only the balances related to that nonintegrated coverage. The amount refunded to the contract holder from the change in the coverage is determined in accordance with terms that are fixed in the contract or applicable state law or regulation, and no reunderwriting is required for other coverage. The amount refunded to the contract holder reduces the related unearned revenue liability, and the balance of the unamortized deferred acquisition costs related to the extinguished nonintegrated contract coverage is eliminated.
","snippet":"If one of the existing drivers under the contract described in paragraph 944-30-55-44 is removed from the automobile contract, it is the extinguishment of nonintegrated contract coverage and should be accounted for as an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7f9566c1c24c3b1cf5ba57c0433e412d0be146f755b1bdfbe68ad25d8bbe521","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-47","para":"55-47","html":"
An increase in the collision deductible of an automobile contract is, in effect, a reduction in the coverage provided. It is not an internal replacement, but a reduction in coverage under paragraph 944-30-35-29, providing that all the terms that determine the amount refunded from the change in coverage are fixed in the original contract or by applicable state law or regulation and no reunderwriting is required for the continuing coverage. Contractual provisions that allow the contract holder to elect to decrease existing coverage at then-current rates (other than when required by state law or regulation), subject to a stated minimum and maximum, generally are not specific enough to satisfy this requirement.
","snippet":"An increase in the collision deductible of an automobile contract is, in effect, a reduction in the coverage provided. It is not an internal replacement, but a reduction in coverage under paragraph 944-30-35-29, providin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7d3e4ee6461b33bbaed40c1d92f1ec4405fc74965c90db0021adcccfb325728","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-48","para":"55-48","html":"
A decrease in the collision deductible of an automobile contract is, in effect, an increase in the coverage provided. It is not an internal replacement, but an election by the contract holder of coverage that was within the original contract as noted in paragraphs
944-30-35-26 through 35-28
, providing that all the terms that determine the amount of the premium related to the additional coverage are fixed in the original contract or by applicable state law or regulation and no reunderwriting is required of the original coverage. Contractual provisions that allow the contract holder to elect to add future coverage at then-current rates (other than when required by state law or regulation), subject to a stated minimum and maximum, generally are not specific enough to satisfy this requirement.
","snippet":"A decrease in the collision deductible of an automobile contract is, in effect, an increase in the coverage provided. It is not an internal replacement, but an election by the contract holder of coverage that was within …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cf826484dfb60a858aff0aadd086ec6e7213faed27b7b25527456bc06075286","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-49","para":"55-49","html":"
A homeowner's contract is a short-duration contract that generally provides coverage for loss or damage of property and personal injury occurring on the insured's property. A personal articles floater provides coverage for losses on personal property not covered under the terms of the homeowner's contract. If multiple pieces of jewelry are added to a personal articles floater, each separately identified and priced item constitutes a nonintegrated contract feature. Thus, the addition of a personal articles floater providing coverage for several new pieces of jewelry to an existing homeowner's contract, with no other changes in the contract, results in additional nonintegrated contract coverage that should be accounted for separately from the existing homeowner's contract, as the underwriting and price for coverage for the jewelry is determined separately from the homeowner's contract and does not result in the reunderwriting of the existing coverages provided by the contracts. This is true even though the items covered by the personal articles floater and the homeowner's contract share a deductible and limit in the event of a common loss. The sharing of a common deductible and limit in the event of loss does not determine whether the contract feature or coverage is integrated, as the deductible is a definition of the terms of coverage resulting from a single loss event.
","snippet":"A homeowner's contract is a short-duration contract that generally provides coverage for loss or damage of property and personal injury occurring on the insured's property. A personal articles floater provides coverage f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:238a27ecfdd36e6e587f4222e80109c3efed52f0236dfdb16866e2d3f25dc7b3","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-50","para":"55-50","html":"
A contract holder increases the coverage of a homeowner's contract, which insures a house valued at $350,000 with $300,000 of insurance coverage, to $400,000 to include a recently completed addition to the house worth $100,000. The additional layer of coverage results in a nonintegrated contract feature that should be accounted for separately from the existing homeowner's contract, provided that the additional premium charged for that incremental insurance coverage is not in excess of an amount that is commensurate with the incremental insurance coverage and does not result in the explicit or implicit reunderwriting or repricing of other components of the contract. If, however, there was substantive underwriting of the entire contract, including the original coverage, the contract would be considered to be substantially changed because substantive reunderwriting of existing contract coverage is an indicator that the insurance risk has changed significantly, and would probably also result in the repricing of the entire contract, which would result in failure to satisfy the criteria in paragraph 944-30-35-37. Additional coverage provided by a nonintegrated contract feature is considered nonintegrated even though the entire coverage provided by the contract is subject to a common deductible and limit in the event of an insured loss.
","snippet":"A contract holder increases the coverage of a homeowner's contract, which insures a house valued at $350,000 with $300,000 of insurance coverage, to $400,000 to include a recently completed addition to the house worth $1…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47a2b390f36c6c65435fc9deb466702923b4c2d7150452c98ac565788487cf30","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-51","para":"55-51","html":"
A contract holder currently has an umbrella contract from the same insurance entity as his or her homeowner's contract that provides for liability coverage with a limit of $1 million. The contract holder requests to increase the limit on the umbrella contract to $2 million. This additional layer of coverage results in additional nonintegrated contract coverage that should be accounted for separately from the existing umbrella contract, as the additional premium charged is not in excess of an amount that would be commensurate with the additional insurance coverage obtained ($1 million in excess of $1 million with no additional deductible), and there was no reunderwriting of the original coverage. If, however, there was substantive underwriting of the entire contract, including the original coverage, the contract would be considered to be substantially changed because substantive reunderwriting of existing contract coverage is an indicator that the insurance risk has changed significantly.
","snippet":"A contract holder currently has an umbrella contract from the same insurance entity as his or her homeowner's contract that provides for liability coverage with a limit of $1 million. The contract holder requests to incr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55d20cdcdb0c34cdb7dd01fa041cfbfbe8fc99da649aeeb15d9b8ad4fcead04a","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-52","para":"55-52","html":"
A long-term care product provides for a specified payment while the insured qualifies for benefits under the contract; for example, while in a long-term care facility or when receiving care at home. If the long-term care product had an authorized rate increase, the insurance entity may offer the contract holder the option of reducing coverage instead of paying additional premiums (i.e., maintain the current premium rate). For example, if the original contract provided benefit coverage of $100 a day for a $2,000 annual premium and there was an authorized increase of premiums to $2,500, the contract holder could elect to pay the increased premium or, if allowed by the insurance contract, retain annual premiums of $2,000 with reduced benefit coverage of $80 a day. In this example, the increase in premiums from $2,000 to $2,500 is related to a change in the cost of the insurance that is within ranges outlined in the contract and approved by the insurance regulator, and by itself the premium increase is not considered a modification to the contract. The contract holder election of a reduction in benefits is not an internal replacement, but rather a reduction in coverage under paragraph 944-30-35-29, if all the terms for a change in coverage are fixed in the original contract or by applicable state law or regulation and no reunderwriting of the continuing coverage is required.
","snippet":"A long-term care product provides for a specified payment while the insured qualifies for benefits under the contract; for example, while in a long-term care facility or when receiving care at home. If the long-term care…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb32fbf55b49a57bbe14c79e233ffda5431631a3228576a81d268524816df6a4","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-53","para":"55-53","html":"
If the contract holder elected a reduction in benefits under which the terms related to a change in coverage were not fixed in the original contract, the contract modification results in the replacement contract being substantially unchanged from the replaced contract as a result of the following:
  1. a
    The insured event has not changed from the replaced contract.
  2. b
    The exchange does not change the nature of the contract holder's investment return rights.
  3. c
    No additional deposit or premium is required and there are no changes in the charges related to the original benefits in excess of the amounts specified or allowed in the original contract, as the reduction in benefits is not in excess of the corresponding reduction in premiums. (The original contract provided for benefits of $100 a day for $2,000 annual premium, the reduction in benefits to $80 a day is commensurate with the 20-percent reduction in premiums from the increased rate of $2,500 to $2,000.)
  4. d
    There is no net decrease in the balance available to the contract holder.
  5. e
    There is no change in the participation or dividend features of the replaced contract.
  6. f
    There is no change in the amortization method or revenue classification of the replaced contract.
","snippet":"If the contract holder elected a reduction in benefits under which the terms related to a change in coverage were not fixed in the original contract, the contract modification results in the replacement contract being su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:524b144cf2505697e635a8ed83a7bc391e147757f123ef0e2225c2f7596496b8","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-54","para":"55-54","html":"
A single premium deferred annuity typically is classified as an investment contract as addressed in paragraphs
944-20-15-16 through 15-25
.
","snippet":"A single premium deferred annuity typically is classified as an investment contract as addressed in paragraphs 944-20-15-16 through 15-25.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dcf37a8fc20411ec25ad1a05c7d7ea8b91c1adbcccd3c0bb172421670bd13c66","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-55","para":"55-55","html":"
The current interest rate guarantee period of a market value annuity typically does not encompass substantially all of the expected life of the contract. At the end of an interest rate declaration period, a new crediting rate is declared by the insurance entity and may vary above the minimum guaranteed rate. The length of the initial and subsequent interest rate guarantee periods generally is selected by the contract holder. Market value annuities typically are classified as investment contracts.
","snippet":"The current interest rate guarantee period of a market value annuity typically does not encompass substantially all of the expected life of the contract. At the end of an interest rate declaration period, a new crediting…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:74743b143f720a7e774460d9be826389548adc9b96404628e162d27426b7c138","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-56","para":"55-56","html":"
In this guidance, there is no significant difference in the declared interest crediting rate (further, the change in interest rates is consistent with the change in declaration period), no change in the guaranteed minimum interest rate, no additional deposit or premium is required, and there are no surrender charges or front-end fees associated with the internal replacement. The contract exchange of a single premium deferred annuity contract for a market value annuity contract results in the replacement contract being substantially unchanged from the replaced contract as a result of the following:
  1. a
    The insured event has not changed from the replaced contract.
  2. b
    The exchange does not change the nature of the contract holder's investment return rights (crediting rate declared by insurance entity, subject to guaranteed minimum crediting rate). The single premium deferred annuity and the market value annuity are both contracts for which the interest rate is periodically reset by the insurance entity subject to a minimum interest rate guaranteed by the contract and, in this example, the current declared interest period does not represent substantially all of the expected life of the contract. The difference between the single premium deferred annuity and the market value annuity results from the manner in which the amount available to the contract holder is determined in the event the contract is terminated prematurely, not the contractual rights and provisions for the determination of the contract holder's investment return in the absence of a premature termination of the contract.
  3. c
    No additional deposit or premium is required, and there are no changes in the charges related to the original benefits.
  4. d
    There is no net decrease in the balance available to the contract holder.
  5. e
    There is no change in the participation or dividend features of the replaced contract.
  6. f
    There is no change in the amortization method or revenue classification of the replaced contract.
","snippet":"In this guidance, there is no significant difference in the declared interest crediting rate (further, the change in interest rates is consistent with the change in declaration period), no change in the guaranteed minimu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3190712b7be2b2c0d53047cef91e5d3710fb47425e261a39e220468d47113e38","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-57","para":"55-57","html":"
The single premium deferred annuity and the market value annuity are both contracts for which the interest rate is periodically reset by the insurer subject to a minimum interest rate guaranteed by the contract; the only significant substantive difference between these two contracts is the manner in which amounts are determined in the event of a premature surrender. If the declared interest rate period of the market value annuity constituted substantially all of the expected life of the contract, the change from a contract for which interest is set at the discretion of the insurer to one for which the rate is set by contract would result in a substantially changed contract.
","snippet":"The single premium deferred annuity and the market value annuity are both contracts for which the interest rate is periodically reset by the insurer subject to a minimum interest rate guaranteed by the contract; the only…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:218f57e4aa783d64e2e66d5704d3c0ba1a3dd4af6945c81601b9c8cfb3fa8d96","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-58","para":"55-58","html":"
A single premium deferred annuity has a crediting rate that is set at the discretion of the insurance entity. An equity-indexed annuity is a deferred fixed annuity contract with a guaranteed minimum crediting rate plus a contingent return based on a contractually specified internal or external equity index. Equity-indexed annuities typically are classified as investment contracts with embedded derivatives that are required to be bifurcated from the contract and accounted for separately under Topic 815 (see paragraphs
815-15-55-62 through 55-72
). Generally, the equity index feature represents a periodic crediting rate mechanism that affects the amounts credited to the contract holder's account balance, rather than representing a benefit in addition to the account balance that protects the contract holder from other-than-nominal capital market risk and exposes the insurance entity to other-than-nominal capital market risk. Periodic crediting rate mechanisms are required to be evaluated for possible bifurcation under Topic 815. However, an equity-indexed annuity also may contain one or more market risk benefits (see paragraphs
944-40-55-29A through 55-29D
).
","snippet":"A single premium deferred annuity has a crediting rate that is set at the discretion of the insurance entity. An equity-indexed annuity is a deferred fixed annuity contract with a guaranteed minimum crediting rate plus a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02511d2e8440f11d5fbba4f6df173fd597ea05395bc7663385ce492a9f3eee50","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-59","para":"55-59","html":"
The contract exchange of a single premium deferred annuity contract for an equity-indexed annuity results in the replacement contract being substantially changed from the replaced contract because the nature of the contract holder's investment return rights differs significantly between the two contracts. The crediting rate of the single premium deferred annuity contract is declared at the discretion of the insurance entity, while the crediting rate on the equity-indexed annuity is contractually determined by reference to a pool of assets, an index, or other specified formula.
","snippet":"The contract exchange of a single premium deferred annuity contract for an equity-indexed annuity results in the replacement contract being substantially changed from the replaced contract because the nature of the contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06f3a642622937b2f657bf5bf736496423173ab7ee750e4ff52a37b7c45f9409","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-60","para":"55-60","html":"
A single premium deferred annuity has a crediting rate that is set at the discretion of the insurance entity. A multi-bucket annuity is a general account deferred annuity for which, subject to a contractually specified minimum crediting rate, the interest rate to be credited on the contract holder's account balance is determined based on the returns achieved on a specified category of investments or investment strategy selected by the contract holder. The contract specifies the rights and provisions for the determination of investment return to the contract holder.
","snippet":"A single premium deferred annuity has a crediting rate that is set at the discretion of the insurance entity. A multi-bucket annuity is a general account deferred annuity for which, subject to a contractually specified m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4dc1e5447079afa64a22f345a788d0dba0b27235fe43e3359ccf0a182304994c","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-61","para":"55-61","html":"
The contract exchange of a single premium deferred annuity contract for a multi-bucket annuity results in the replacement contract being substantially changed from the replaced contract because the nature of the investment return rights are different between the two contracts. In the case of the typical single premium deferred annuity, the interest rate is declared at the discretion of the insurance entity whereas, in the case of the multi-bucket annuity, the interest rate is determined by reference to a specific category of assets or investment strategy selected by the contract holder as defined in the contract.
","snippet":"The contract exchange of a single premium deferred annuity contract for a multi-bucket annuity results in the replacement contract being substantially changed from the replaced contract because the nature of the investme…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:60061fd547443a76d1a4816deec3a56d5788eebdbc08785f9bb0e59bceb62307","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-62","para":"55-62","html":"
A fixed-interest rate guaranteed investment contract has a stated fixed crediting rate guaranteed for a specified period. An example of a variable-interest rate guaranteed investment contract is a contract with a credited interest rate defined as London Inter Bank Offered Rate (LIBOR) plus a specified spread. Both types of guaranteed investment contracts are classified investment contracts under paragraphs
944-20-15-16 through 15-25
.
","snippet":"A fixed-interest rate guaranteed investment contract has a stated fixed crediting rate guaranteed for a specified period. An example of a variable-interest rate guaranteed investment contract is a contract with a credite…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd31100eef365ae452d3af81f076d1d0b48d1e5c2e7ace35af2bfe6a049e25f2","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-63","para":"55-63","html":"
The contract exchange of a fixed-rate guaranteed investment contract for a variable-rate guaranteed investment contract results in the replacement contract being substantially changed from the replaced contract because the investment return rights for the determination of the contract holder's investment return are different between the two contracts. In the case of the fixed-rate guaranteed investment contract, the interest rate is fixed and guaranteed whereas, in the case of the variable-interest rate guaranteed investment contract, the investment return to the contract holder is contractually specified to be determined based on the returns achieved on a specified category of investments or tied to a specific index.
","snippet":"The contract exchange of a fixed-rate guaranteed investment contract for a variable-rate guaranteed investment contract results in the replacement contract being substantially changed from the replaced contract because t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc3ebeabfb71b65701703f3ad8ca07c63b6ed3f29bd718aebe1f73ff614e3e02","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-64","para":"55-64","html":"
A variable annuity is a product offered by an insurance entity in which the contract holder's payments are used to purchase units of a separate account. The contract holder directs the allocation of the account value among various investment allocation alternatives and bears the investment risk. The units may be surrendered for their current value in cash (often less a surrender charge) or applied to purchase annuity income contracts. The insurance entity periodically deducts mortality and expense charges from the account. A common feature in variable annuities is a minimum guaranteed death benefit, with some minimum guaranteed death benefit designs providing more extensive benefits than others.
","snippet":"A variable annuity is a product offered by an insurance entity in which the contract holder's payments are used to purchase units of a separate account. The contract holder directs the allocation of the account value amo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3903a2e45a2e93cea21fc6853032116bc090fb6a3b02db89eb141a1a7bbc9c1f","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-65","para":"55-65","html":"
The contract exchange of a variable annuity with a return of premium death benefit guarantee, that in this example is determined to have a minimal degree of mortality risk (although sufficient to result in classification as an insurance contract), for a variable annuity that contains a ratchet death benefit guarantee, that in this example is determined to be a \"rich\" death benefit, results in the replacement contract being substantially changed from the replaced contract as the change in death benefits substantively changes the degree of mortality risk. The nature of a minimum guaranteed death benefit provision is essentially a combination of mortality and investment events. Although the actual mortality event itself is the same in the return of premium and ratchet guaranteed minimum death benefits (death of the contract holder), the risk has changed because of the combined effects of mortality and investment events. In this instance, the preparer analyzed and concluded that a significant change in the actuarially determined expected mortality costs was indicative of a significant change in the degree of mortality risk. It should be noted that other methods and approaches could have been used to evaluate the change in degree of mortality.
","snippet":"The contract exchange of a variable annuity with a return of premium death benefit guarantee, that in this example is determined to have a minimal degree of mortality risk (although sufficient to result in classification…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f7d5ca149734ebbf5cc402aa6e4d5a0d4c8379e0a24d80ebbf2e86c7044887c","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-66","para":"55-66","html":"
In this guidance, it is assumed that both the variable annuity with the rollup death benefit guarantee and the variable annuity with the ratchet death benefit guarantee offered as an internal replacement are determined to have similar degrees of mortality risk. In this instance, the preparer compared actuarially determined expected mortality costs, and since the costs were similar, it was indicative that the degree of mortality risk was also similar. It should be noted that other methods and approaches could have been used to evaluate the change in degree of mortality. It is also assumed that there is no reunderwriting required for the transaction, no additional deposit required to effect the transaction, and no net decrease in the balance available to the contract holder prior to surrender charges. In this guidance, the replacement results in additional mortality and expense charges due to the enhanced death benefit guarantee not in excess of an amount commensurate with the added benefit. A contract exchange of a variable annuity contract that contains a minimum guaranteed death benefit that is determined to have significant mortality risk with a variable annuity contract that contains another kind of minimum guaranteed death benefit that is determined to have a comparable degree of mortality risk, results in the replacement contract being substantially unchanged from the replaced contract as a result of the following:
  1. a
    The exchange does not result in a significant change in the kind and degree of mortality risk.
  2. b
    The exchange does not change the nature of the contract holder's investment return rights.
  3. c
    No additional deposit or premium is required relating to the variable annuity (the original benefit), and the additional charges for the ratchet death benefit guarantee are not in excess of an amount commensurate with the benefit.
  4. d
    There is no net decrease in the balance available to the contract holder.
  5. e
    There is no change in the participation or dividend features of the contracts.
  6. f
    There is no change to the revenue classification of the replaced contract.
","snippet":"In this guidance, it is assumed that both the variable annuity with the rollup death benefit guarantee and the variable annuity with the ratchet death benefit guarantee offered as an internal replacement are determined t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ce36c66b7e2b29f139d5ab0699c0c3d55808b16bec0fd3c52edb8ed56d24be1","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-67","para":"55-67","html":"
If the modification were achieved through amendment, endorsement, or rider rather than through a contract exchange, the analysis and conclusion would be the same as for the contract exchange because the minimum guaranteed death benefit is an integrated feature.
","snippet":"If the modification were achieved through amendment, endorsement, or rider rather than through a contract exchange, the analysis and conclusion would be the same as for the contract exchange because the minimum guarantee…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19e0d21aef46afe538d5cb44e7ebffd783a450ad16923c939093db064a999004","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-68","para":"55-68","html":"
A long-term care rider provides that in the event the insured enters a covered facility, the feature will provide a specified fixed payment while the insured is being treated at a covered facility.
","snippet":"A long-term care rider provides that in the event the insured enters a covered facility, the feature will provide a specified fixed payment while the insured is being treated at a covered facility.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fbc7ba37c19008289ca24f1bd970deada214a8e252488e8186bf891a18aede7c","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-69","para":"55-69","html":"
In this guidance, the contract holder exchanges the original variable annuity contract for a new variable annuity contract that contains an long-term care rider. This is a contract exchange in which the replacement contract contains a nonintegrated contract feature, as the long-term care rider is not related to the provisions of the replacement variable annuity contract. This contract exchange results in the base annuity contract being substantially unchanged from the replaced contract as a result of the following:
  1. a
    The modification does not result in a change in the insured event, as there is no significant change in the kind and degree of mortality risk from the replaced contract.
  2. b
    There is no change in the nature of the investment return rights from the replaced contract.
  3. c
    There are no changes in the charges related to the variable annuity (the original benefit), and the additional premium for the long-term care benefit is not in excess of an amount commensurate with the additional insurance coverage obtained.
  4. d
    There is no net decrease in the balance available to the contract holder.
  5. e
    There is no change in the participation or dividend features of the replaced contract.
  6. f
    The modification does not result in a change to either the amortization method or revenue classification of the contract.
","snippet":"In this guidance, the contract holder exchanges the original variable annuity contract for a new variable annuity contract that contains an long-term care rider. This is a contract exchange in which the replacement contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5aeab99d4d8bf7e99f1a03f9884a39f47acda9ad99fb3b39948360c756dbdf1","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-70","para":"55-70","html":"
The long-term care rider should be accounted for as a separate contract, as it is a nonintegrated contract feature. This accounting would be the same if the modification had been achieved through the addition of a long-term care rider to the original annuity contract rather than through an exchange.
","snippet":"The long-term care rider should be accounted for as a separate contract, as it is a nonintegrated contract feature. This accounting would be the same if the modification had been achieved through the addition of a long-t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae918310c42e2fc7257a8c562987b9a299b06303ff566978060f02097511db41","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-71","para":"55-71","html":"
Variable annuities generally have a number of investment allocation alternatives from which the contract holder may select. In the normal course of business, companies modify these elections for a number of reasons, including competition and changes in investment management and distribution relationships. Throughout the life of the contract, the contract holder has the option to select new allocations for the investment of his or her annuity account balance. Generally, the addition of new investment allocation alternatives to variable life insurance or annuity contracts does not result in a substantive change to the original contract because the contractual rights and provisions for the determination of the contract holder's investment return have not changed.
","snippet":"Variable annuities generally have a number of investment allocation alternatives from which the contract holder may select. In the normal course of business, companies modify these elections for a number of reasons, incl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d59fe030ab910c5c22eab68061b78d99c1b048afb49ec34d4dd8603754110fa8","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-72","para":"55-72","html":"
It is possible that one of the investment allocation alternatives added or elected could be a fixed return option. As long as the contract remains a variable annuity contract and the contract holder retains the right to reallocate amounts to other investment alternatives, neither the addition of the investment alternative nor the contract holder's utilization of that investment alternative would constitute an internal replacement that results in a substantially changed contract. If, however, the contract holder's election of a fixed allocation alternative results in a conversion or partial conversion to a fixed annuity contract or the contract remains a variable annuity contract but the transfer is effectively a conversion or partial conversion because there are substantive restrictions on the contract holder's ability to reallocate amounts to other investment alternatives, the modification would result in a substantially changed contract to the extent of the conversion or substantially restricted balance.
","snippet":"It is possible that one of the investment allocation alternatives added or elected could be a fixed return option. As long as the contract remains a variable annuity contract and the contract holder retains the right to …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bcacc53cab295bf9c4e4524a6a984209ca572692ea5941eb66940f62510291c1","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-73","para":"55-73","html":"
A variable annuity contract is replaced with a variable annuity contract that also provides a guaranteed minimum accumulation benefit, in this example, a 5-percent annual rollup of contract value in 10 years. The contract exchange of a variable annuity for a variable annuity that contains a guaranteed minimum accumulation benefit results in the replacement contract being substantially changed from the replaced contract because the addition of a guaranteed minimum accumulation benefit, an integrated benefit feature, changes the investment return rights of the contract holder by providing a minimum investment return guarantee. The analysis would be the same if the change had been achieved through the addition of a guaranteed minimum accumulation benefit rider. If, however, the contract holder had elected to add a guaranteed minimum accumulation benefit feature that was included in the original contract (and met the specifications in paragraphs
944-30-35-26 through 35-28
), the modification would not be considered an internal replacement.
","snippet":"A variable annuity contract is replaced with a variable annuity contract that also provides a guaranteed minimum accumulation benefit, in this example, a 5-percent annual rollup of contract value in 10 years. The contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a145d4eb9a49e5cea9369bd0d50f31d339becd21c329ab6afde380af359f592b","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-74","para":"55-74","html":"
A variable annuity contract is replaced with a variable annuity contract that also provides a guaranteed minimum income benefit, in this guidance, a 5-percent annual rollup of contract value. A guaranteed minimum income benefit, an integrated contract feature, specifies a manner in which an annuitization benefit is determined if the contract holder elects to annuitize. The guaranteed minimum income benefit cannot be withdrawn or net settled. The contract exchange of a variable annuity for a variable annuity that contains a guaranteed minimum income benefit results in the replacement contract being substantially changed from the replaced contract because the addition of a guaranteed minimum income benefit changes the investment return rights of the contract holder, as a minimum investment return provision, via the guaranteed amount for annuitization, has been added to the variable annuity. The analysis would be the same if the change had been achieved through the addition of a guaranteed minimum income benefit rider. If, however, the contract holder had elected to add a guaranteed minimum income benefit feature that was included in the original contract (and met the specifications in paragraphs
944-30-35-26 through 35-28
), the modification would not be considered an internal replacement.
","snippet":"A variable annuity contract is replaced with a variable annuity contract that also provides a guaranteed minimum income benefit, in this guidance, a 5-percent annual rollup of contract value. A guaranteed minimum income …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b497a71c9a5c437600e5fe2b71a4c8a2fc6ed8912f0dbd32d0663870dcadcea","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-75","para":"55-75","html":"
The insurance entity either replaces deferred annuity contracts with annuity contracts that contain the guaranteed minimum withdrawal benefit feature or the insurance entity adds a guaranteed minimum withdrawal benefit rider to existing inforce business (that is, deferred annuity contracts).
","snippet":"The insurance entity either replaces deferred annuity contracts with annuity contracts that contain the guaranteed minimum withdrawal benefit feature or the insurance entity adds a guaranteed minimum withdrawal benefit r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1623c5d377752562ee658cd46d84346f7ee05779db06006022366adfe21e123e","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}},{"citation":"944-30-55-76","para":"55-76","html":"
A variable annuity with a guaranteed minimum withdrawal benefit is classified as an investment contract with a market risk benefit. The contract exchange of a variable annuity for a variable annuity that contains a guaranteed minimum withdrawal benefit results in the replacement contract being substantially changed from the replaced contract because the addition of a guaranteed minimum withdrawal benefit, an integrated contract feature, changes the investment return rights of the contract holder, as a minimum investment return provision, via the guaranteed withdrawal amount, to the variable annuity. The analysis would be the same if the change had been achieved through the addition of a guaranteed minimum withdrawal benefit rider. If, however, the contract holder had elected to add a guaranteed minimum withdrawal benefit feature that was included in the original contract (and met the specifications in paragraph 944-30-35-26), the modification would not be considered an internal replacement.
","snippet":"A variable annuity with a guaranteed minimum withdrawal benefit is classified as an investment contract with a market risk benefit. The contract exchange of a variable annuity for a variable annuity that contains a guara…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:922ca0500f461aad2abb8405aa6857373c17bed5f4188ffb6ab5b2f89ef9c647","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ccd5af0e20cf504124980eec70f0c95f80422c1edfbcc791bd65ce2c37675f3f","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:934e5851f586653b11348c08e15c66406e5998601b2cc6345b1a932c841d026e","downloaded_from":"2026-09-10T02:16:20.762Z","last_downloaded_at":"2026-09-10T02:16:20.762Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479401","source_sha256":"5ea69b0c18af5206046b10990299b17fde20870dd093d81418c0177b75390327"}}],"enrichment":{"summary":"ASC 944-30 governs how insurance entities capitalize, amortize, present, and disclose acquisition costs (DAC) for short-duration contracts, long-duration contracts, investment contracts, and reinsurance, plus deferred sales inducements. Only costs \"related directly to the successful acquisition\" of new or renewal contracts may be capitalized (944-30-25-1A) — incremental direct costs, directly related compensation/fringe benefits for underwriting, policy issuance and processing, medical and inspection, and sales force contract selling, plus certain other direct costs and qualifying direct-response advertising. Post-ASU 2018-12, long-duration DAC is amortized on a constant level basis over the expected contract term (944-30-35-3A), and the Internal Replacement Transactions Subsections determine whether a modified/replaced contract is \"substantially unchanged\" (continuation, DAC carried forward) or \"substantially changed\" (extinguishment, DAC written off).","key_points":["Only costs directly related to the successful acquisition of new or renewal contracts may be capitalized: incremental direct costs, the portion of employee compensation and payroll-related fringe benefits for time spent on underwriting, policy issuance and processing, medical and inspection, and sales force contract selling, and other directly related costs that would not have been incurred but for the acquisition (944-30-25-1A); unsuccessful efforts, idle time, market research, training, general overhead, and dedicated software are expensed as incurred (944-30-55-1B; 944-30-55-1F).","Direct-response advertising costs are capitalized only if the primary purpose is to elicit sales to customers documented as responding specifically to the advertising and the advertising results in probable future benefits based on verifiable historical patterns for the entity (944-30-25-1AA through 25-1I); probable future benefits include only primary revenues (944-30-25-1P), and costs not capitalized may not be retroactively capitalized (944-30-25-1I).","Acquisition costs that vary in a constant relationship to premiums or insurance in force, are recurring, or are incurred in level amounts (e.g., recurring premium taxes, ultimate level commissions) are maintenance and other period costs expensed as incurred (944-30-25-4 through 25-5).","Short-duration DAC is charged to expense in proportion to premium revenue recognized under Subtopic 944-605 (944-30-35-1A; 944-30-35-2), while long-duration DAC is charged to expense on a constant level basis — straight-line for individual contracts, or a constant-level basis approximating individual straight-line for grouped contracts — over the expected contract term, not as a function of revenue or profit emergence, with no interest accrual (944-30-35-3A; 944-30-35-3C).","The long-duration DAC balance is reduced for actual experience in excess of expected (unexpected terminations), and changes in future estimates are recognized prospectively as revisions of future amortization amounts (944-30-35-3B).","Sales inducements that are incremental to amounts credited on similar contracts, exceed expected ongoing crediting rates, are recognized as part of the liability under 944-40-25-12, and are explicitly identified in the contract at inception are deferred as an asset and amortized like DAC, with amortization in benefit expense (944-30-25-6 through 25-7; 944-30-35-18; 944-30-45-2).","An internal replacement is 'substantially unchanged' only if all six conditions in 944-30-35-37 are met (no change in insured event/risk/period of coverage, investment return rights, no additional deposit, no net account value reduction, no change in participation/dividend features, no change in amortization method or revenue classification); continuation carries DAC, unearned revenue liabilities, and deferred sales inducements forward on a prospective basis (944-30-35-38 through 35-40, 35-46), while a substantially changed contract is accounted for as an extinguishment with those balances not deferred (944-30-40-1 through 40-4)."],"categories":["Industry-specific","Initial measurement","Subsequent measurement","Disclosure"],"audience_level":"advanced","student_note":"DAC is the signature insurance-accounting asset, and ASU 2018-12 fundamentally changed it: long-duration DAC is now amortized on a constant level basis over the expected term with no interest accrual and no unlocking/retrospective catch-up, and it is no longer subject to the old EGP/gross-profit amortization or to DAC recoverability testing. The most common error is assuming all costs of writing business are deferrable — only costs directly related to *successful* acquisition qualify, so unsuccessful underwriting effort, idle time, marketing, training, and overhead must be expensed as incurred.","related_topics":["944-40","944-60","944-605","944-20","944-720","310-20"],"key_concepts":["deferred acquisition costs","successful efforts capitalization","constant level amortization","direct-response advertising","deferred sales inducements","internal replacement transactions","substantially unchanged contract","integrated vs. nonintegrated contract 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Hedging","score":0.7745,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75910f373818ca4bb80326ae2e6a1bf08e41d0bd419206bc1372631224ed880b","downloaded_from":"2026-09-10T01:40:24.221Z","last_downloaded_at":"2026-09-10T01:40:44.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-40","title":"Claim Costs and Liabilities for Future Policy Benefits","topic_title":"Financial Services—Insurance","score":0.7702,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c4edeea6be6ae76cea0fcff5201d3d9f8dce50f96e4a6d526be810ae793de7f","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 timestamps"}},{"number":"340-30","title":"Insurance Contracts That Do Not Transfer Insurance Risk","topic_title":"Other Assets and Deferred Costs","score":0.7572,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8293d0a4abe07dd551bdcb3c86e7129d2510d17dc1feea43421babd32cfa2001","downloaded_from":"2026-09-09T23:55:41.723Z","last_downloaded_at":"2026-09-09T23:56:05.098Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"805-20","title":"Identifiable Assets and Liabilities, and Any Noncontrolling Interest","topic_title":"Business Combinations","score":0.734,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de5d367bf2be3c0e0c22d936e1f41512743dd4a9eba8f3c58f7c39e00e366cd8","downloaded_from":"2026-09-10T01:23:05.700Z","last_downloaded_at":"2026-09-10T01:23:57.518Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"944-20","title":"Insurance Activities","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:726349848374d3f0204ed65a8d7ed2d75bcea89bdb0ffca858a3730d1bdfb8a8","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not 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timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eb9d31a4aba1646a3325a886e62202f88f0f63ff2182cb9ae9ea668f0450f567","downloaded_from":"2026-09-10T02:15:49.991Z","last_downloaded_at":"2026-09-10T02:16:24.166Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"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
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The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of short-duration contracts.
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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.
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The Reinsurance Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of reinsurance contracts.
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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.
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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.
","snippet":"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-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a67fedebd3225dc8d9cc0cb6f2c69fbd12de663c22b463a716a2daabc68c1881","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":"sha256:2910093f13c6fa6697564617bca42246ddb8d93497b0ccd636fffafe60f35dd9","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":"Overall Guidance","paragraphs":[{"citation":"944-40-15-7","para":"15-7","html":"
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.
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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.
","snippet":"Both of the following shall be accrued when insured events occur:\n(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…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53815f5d6115572e36b1167bd077e9d6682bbd17c2f47c03fffdad861b9a2aac","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":"944-40-25-2","para":"25-2","html":"
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.
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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.
","snippet":"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 show…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2b1eb09c964867eb4854fd8dffdc7d172d4e5b3ea0d31406b1c8695dae541ad","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":"944-40-55-17","para":"55-17","html":"
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.
","snippet":"This Example illustrates computations involved in the following:\n(a) Subparagraph superseded by Accounting Standards Update No. 2018-12.\n(b) Benefit ratio\n(c) Additional liability\n(d) Subparagraph superseded by Accountin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be15b7cfee75f07ac17efd1345495b6857ea844482f1ece044449771b3cb8689","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":"944-40-55-18","para":"55-18","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":"sha256:592424e71daed5ab4736b5eeaad407a3f273ab764d9a70a00dce2ed9e6d9dcfd","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":"944-40-55-19","para":"55-19","html":"
Columns in the computations that follow do not cross-foot due to rounding.
","snippet":"Columns in the computations that follow do not cross-foot due to rounding.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b7ca654da5aa176ae421324627262685aa3fa35c58baaf2c95175afcdb26b446","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":"944-40-55-20","para":"55-20","html":"
Computation of components of the additional liability follows.
","snippet":"Computation of components of the additional liability follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de03a98340208f271fbc10fd7c498f708906db9153e059fba81f14a32794b742","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":"944-40-55-21","para":"55-21","html":"
Computation of the benefit ratio follows.
","snippet":"Computation of the benefit ratio follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2974902b8cd6870144743fe1420e63c58523f2de83369c0f0ff81a846b638a7e","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":"944-40-55-22","para":"55-22","html":"
Computation of the Year 1 additional liability follows.
","snippet":"Computation of the Year 1 additional liability follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37a4da1a5f375702b50b51779024f58a8d8ce958152eb52b91aa6f5232d14491","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":"944-40-55-23","para":"55-23","html":"
The additional liability schedule follows.
","snippet":"The additional liability schedule follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1134028e6dfb20d6c5b9e2497a9b498a6c832b6933a8e9538d1c8465e1bb8cba","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":"944-40-55-24","para":"55-24","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":"sha256:61eb3d17f4de211472185e53e9afb83fb442e67874b90721b9ad3e518b5b7191","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":"944-40-55-25","para":"55-25","html":"
Computation of components of the additional liability with a 10 percent increase in the account balance in Year 2 follows.
","snippet":"Computation of components of the additional liability with a 10 percent increase in the account balance in Year 2 follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41a93953557ec7c1940de671f1bc719294c3524b56ffad5cdbc49e664bbe3f5d","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":"944-40-55-26","para":"55-26","html":"
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.
","snippet":"The updated additional liability schedule follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39a8718803a5e9aae61da776d610a578a8cdcd9d77967fb7a4e3acefe19f3f05","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":"944-40-55-29","para":"55-29","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":"sha256:8d80eaa369881d4d706d223f986e2a91137e9da3d187c378460e37844340419b","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":"944-40-55-29A","para":"55-29A","html":"
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.
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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.
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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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7e5daf0fb2bfdc70b3c795414cf48494d51d31fa87a1e6a328a7016fb25dd14","downloaded_from":"2026-09-10T02:16:54.570Z","last_downloaded_at":"2026-09-10T02:16:54.570Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480016","source_sha256":"43ddf714806b75745988bdf86572d61348c3e1a1c02418f6258d6a70e73a773c"}},{"citation":"944-40-65-2","para":"65-2","html":"
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.
","snippet":"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-Dur…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5df1d1dba6a3e186030a1012da0b3beedf513f0e5598a655787551309ad47ddd","downloaded_from":"2026-09-10T02:16:54.570Z","last_downloaded_at":"2026-09-10T02:16:54.570Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480016","source_sha256":"43ddf714806b75745988bdf86572d61348c3e1a1c02418f6258d6a70e73a773c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f1d7dc58ce3ad9158442141f5230e5699ce7dead5f0a729a54ff87f1a04d697","downloaded_from":"2026-09-10T02:16:54.570Z","last_downloaded_at":"2026-09-10T02:16:54.570Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480016","source_sha256":"43ddf714806b75745988bdf86572d61348c3e1a1c02418f6258d6a70e73a773c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba29766058730d332646f2015de83f6e528164c1e0aed7f4cad9789bb5b6dcdb","downloaded_from":"2026-09-10T02:16:54.570Z","last_downloaded_at":"2026-09-10T02:16:54.570Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480016","source_sha256":"43ddf714806b75745988bdf86572d61348c3e1a1c02418f6258d6a70e73a773c"}},{"number":"S00","label":"SEC 00 Status","anchor":"sec-00-status","is_sec":true,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-40-S00-1","para":"S00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
944-40-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\n944-40-S99-1 | Amended | Accounting Standards Update No. 2012-03 | 08/27/2012 |","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:72d998f9eda9557c8caf7fdeca7bd59897987aa0a471ce368efacc54998c86fa","downloaded_from":"2026-09-10T02:17:00.178Z","last_downloaded_at":"2026-09-10T02:17:00.178Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479708","source_sha256":"8c82908c987abadf77c6baf0ddca7f7b9636ef326ce5d644848d69e49dcf75e7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:174f74882142991d69b050a20a47f316711deb32c82b4f2c119b2e6627c58349","downloaded_from":"2026-09-10T02:17:00.178Z","last_downloaded_at":"2026-09-10T02:17:00.178Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479708","source_sha256":"8c82908c987abadf77c6baf0ddca7f7b9636ef326ce5d644848d69e49dcf75e7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ab404229cb5c10e2f5daa24120dc7b823d53c7bfb200dd095740f2efd8a12ff","downloaded_from":"2026-09-10T02:17:00.178Z","last_downloaded_at":"2026-09-10T02:17:00.178Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479708","source_sha256":"8c82908c987abadf77c6baf0ddca7f7b9636ef326ce5d644848d69e49dcf75e7"}},{"number":"S30","label":"SEC 30 Initial Measurement","anchor":"sec-30-initial-measurement","is_sec":true,"groups":[{"block":null,"heading":"Discounting Claims Liabilities Related to Short-Duration Contracts","paragraphs":[{"citation":"944-40-S30-1","para":"S30-1","html":"
See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration contracts.
","snippet":"See paragraph 944-20-S99-1, SAB Topic 5.N, for SEC Staff views on discounting claims liabilities related to short-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b41e4e8c6a06e3157c4bdcd7dab7ca9537bcde0c065cb8f27b54786f70f2980f","downloaded_from":"2026-09-10T02:17:03.233Z","last_downloaded_at":"2026-09-10T02:17:03.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479675","source_sha256":"0a0bce4ca106d613c2860e76954bf84d873e9027288dac4e9d5181c9396bac15"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb5a848e41dbbde3460a9900b3273cc18151d9ca5a5dc52a6a8edb511fc13fe0","downloaded_from":"2026-09-10T02:17:03.233Z","last_downloaded_at":"2026-09-10T02:17:03.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479675","source_sha256":"0a0bce4ca106d613c2860e76954bf84d873e9027288dac4e9d5181c9396bac15"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e07fd25ce58052291aa99daa4cb20f0f8f726585962c74979ece2f799676bc42","downloaded_from":"2026-09-10T02:17:03.233Z","last_downloaded_at":"2026-09-10T02:17:03.233Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479675","source_sha256":"0a0bce4ca106d613c2860e76954bf84d873e9027288dac4e9d5181c9396bac15"}},{"number":"S50","label":"SEC 50 Disclosure","anchor":"sec-50-disclosure","is_sec":true,"groups":[{"block":null,"heading":"Property-Casualty Insurance Reserves for Unpaid Claim Costs","paragraphs":[{"citation":"944-40-S50-1","para":"S50-1","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eca81e38b9dced3aabc6044680b2118931ed8910df1ca2a717ae9b1c6ba569dc","downloaded_from":"2026-09-10T02:17:06.077Z","last_downloaded_at":"2026-09-10T02:17:06.077Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479644","source_sha256":"e6dca7ffe661da04cdcb644fe6e1d0e6e431bcd50dbfdfa5d6258660300f2bbf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d14c74041ba77b3598cff5b23b1e8e003175be31b42b95b091124fb98c1259a","downloaded_from":"2026-09-10T02:17:06.077Z","last_downloaded_at":"2026-09-10T02:17:06.077Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479644","source_sha256":"e6dca7ffe661da04cdcb644fe6e1d0e6e431bcd50dbfdfa5d6258660300f2bbf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c94a1fe994095b05b24e7fb09a08d7c586fcb79f6349247f511dc3bf4c61cf6","downloaded_from":"2026-09-10T02:17:06.077Z","last_downloaded_at":"2026-09-10T02:17:06.077Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479644","source_sha256":"e6dca7ffe661da04cdcb644fe6e1d0e6e431bcd50dbfdfa5d6258660300f2bbf"}},{"number":"S99","label":"SEC 99 SEC Materials","anchor":"sec-99-sec-materials","is_sec":true,"groups":[{"block":null,"heading":"SEC Staff Guidance","paragraphs":[{"citation":"944-40-S99-1","para":"S99-1","html":"
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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Services—Insurance","topic_title":"Receivables","score":0.7943,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9fa3e07985d678441218121e70fe6fd6b016af1886a3014b49cfa3535a5b9e7","downloaded_from":"2026-09-09T23:29:42.889Z","last_downloaded_at":"2026-09-09T23:30:17.133Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-20","title":"Insurance Activities","topic_title":"Financial 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Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1715aba4d97096bdf001d0278cbc8aed2a54247160f8cec353eeaaf6bd8e2e02","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:40.431Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:433c54b1c32330aefe8bc8bc6fba13557357af64423ddfeb529346ea94e189b9","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 timestamps"}},{"number":"944-50","topic":"944","title":"Policyholder Dividends","area":"Industry","paragraphs":18,"summary":"ASC 944-50 governs how insurance entities account for and report policyholder dividends on participating insurance contracts. For participating contracts other than the long-duration participating life contracts described in 944-20-15-3, dividends are accrued (measured at an estimate of the amount to be paid, or recognized over the premium-paying period using anticipated/illustrated dividend scales), and any policyholders' share of net income that cannot be distributed to stockholders is charged to operations and credited to a participating policyholders' funds liability. For long-duration participating life contracts meeting 944-20-15-3, annual policyholder dividends are expensed based on amounts incurred for policies in force and reported separately in the statement of earnings.","concepts":["policyholder dividends","participating insurance contracts","long-duration contracts","participating policyholders' funds liability","dividend scales","terminal dividends","premium-paying period accrual"],"categories":["Industry-specific","Recognition","Presentation","Disclosure"],"level":"intermediate","topic_title":"Financial Services—Insurance","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-50-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Participating Insurance ContractsSupersededAccounting Standards Update No. 2016-1912/14/2016
944-50-25-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-50-25-5AmendedAccounting 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| | | |\nParticipating Insurance Contracts | Superseded | Accounting Standards Update No. 2016-19…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:943a95d5e94c8621ba3b341189b63164cd772ea297b1c25caaa1bf9c787cc8ae","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:16.793Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479963","source_sha256":"48e5dad5eed5fbeb4e8e1d3d50c59316f073b125b667b3c9a83716fa152c2a00"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33a807a3b3e662f38e0a25704e21cad8d9766b90034553a84891c31e431c56ff","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:16.793Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479963","source_sha256":"48e5dad5eed5fbeb4e8e1d3d50c59316f073b125b667b3c9a83716fa152c2a00"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:075988fcff3f14d04d4d36d212343c3a327a9e42340e94fb1d8f791fee4380bd","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:16.793Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479963","source_sha256":"48e5dad5eed5fbeb4e8e1d3d50c59316f073b125b667b3c9a83716fa152c2a00"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-50-05-1","para":"05-1","html":"
This Subtopic provides insurance entities guidance on the accounting for and financial reporting of policyholder dividends. The guidance in this Subtopic is presented in the following two Subsections:
  1. a
    General
  2. b
    Long-Duration Contracts.
","snippet":"This Subtopic provides insurance entities guidance on the accounting for and financial reporting of policyholder dividends. The guidance in this Subtopic is presented in the following two Subsections:\n(a) General\n(b) Lon…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7270a4aea85b31396d7c221533d4cce2d0b3b808005957d0c26d8575c8453ff","downloaded_from":"2026-09-10T02:17:20.214Z","last_downloaded_at":"2026-09-10T02:17:20.214Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479931","source_sha256":"ba074798d2d354660495abb12bd5deb9c3afa17f05445fcf6281ce2680869f7c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0040954fe163d3415dad2de2ac593885fca0b9a90e52f76658793d428f6eb69","downloaded_from":"2026-09-10T02:17:20.214Z","last_downloaded_at":"2026-09-10T02:17:20.214Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479931","source_sha256":"ba074798d2d354660495abb12bd5deb9c3afa17f05445fcf6281ce2680869f7c"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-50-05-2","para":"05-2","html":"
The Long-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on the accounting for and financial reporting of policyholder dividends on long-duration contracts.
","snippet":"The Long-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on the accounting for and financial reporting of policyholder dividends on long-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f976b63e693fbf2baf72539264d8ae79be8cfc6b7ef025bc151af1160ded78d1","downloaded_from":"2026-09-10T02:17:20.214Z","last_downloaded_at":"2026-09-10T02:17:20.214Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479931","source_sha256":"ba074798d2d354660495abb12bd5deb9c3afa17f05445fcf6281ce2680869f7c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b8b6ce7f9b602e7c47cba4b06fd260aaa2f249e09ff9345d36bfc41f5f7f441","downloaded_from":"2026-09-10T02:17:20.214Z","last_downloaded_at":"2026-09-10T02:17:20.214Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479931","source_sha256":"ba074798d2d354660495abb12bd5deb9c3afa17f05445fcf6281ce2680869f7c"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d24d1ce5d6ec9a5085c368a2e3c5d10fd2c377600516bb14a88191a6a62100ac","downloaded_from":"2026-09-10T02:17:20.214Z","last_downloaded_at":"2026-09-10T02:17:20.214Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479931","source_sha256":"ba074798d2d354660495abb12bd5deb9c3afa17f05445fcf6281ce2680869f7c"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"944-50-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15. The guidance in this Subtopic distinguishes between participating contracts that meet the criteria in paragraph 944-20-15-3 and those that do not.
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The Long-Duration 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.
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The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration insurance contracts. For guidance on identifying a long-duration insurance contract, see the Long-Duration Contracts Subsection of Section 944-20-15.
","snippet":"The guidance in the Long-Duration Contracts Subsections of this Subtopic applies only to long-duration insurance contracts. For guidance on identifying a long-duration insurance contract, see the Long-Duration Contracts …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c88b3a132ea8d2b1c8237909ea28eb25154551a440080589924706aca02808a","downloaded_from":"2026-09-10T02:17:24.083Z","last_downloaded_at":"2026-09-10T02:17:24.083Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479900","source_sha256":"02ce2d6154be63d640d8993b6909b95a51c6280de7684d2095b74139201d6206"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ed9cf3558a89448ccb12713b0e1abb90d2ffee308ba4f9cb227c468267c1f15","downloaded_from":"2026-09-10T02:17:24.083Z","last_downloaded_at":"2026-09-10T02:17:24.083Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479900","source_sha256":"02ce2d6154be63d640d8993b6909b95a51c6280de7684d2095b74139201d6206"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20b45fe7ee9e6dace3e1e6ea25726006c4850811ce08982ed91339c5fbe83a7b","downloaded_from":"2026-09-10T02:17:24.083Z","last_downloaded_at":"2026-09-10T02:17:24.083Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479900","source_sha256":"02ce2d6154be63d640d8993b6909b95a51c6280de7684d2095b74139201d6206"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Participating Contracts","paragraphs":[{"citation":"944-50-25-1","para":"25-1","html":"
For participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3, policyholder dividends shall be accrued.
","snippet":"For participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3, policyholder dividends shall be accrued.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e37d5b087bdb5c172cc94ac9982d76e0f250ca1bdbd9713bd88605a99aa98d6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"citation":"944-50-25-2","para":"25-2","html":"
This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. Limitations may exist on the amount of net income from participating insurance contracts of a life insurance entity that may be distributed to stockholders. In that circumstance, the policyholders' share of net income on those contracts that cannot be distributed to stockholders shall be recognized by both:
  1. a
    Excluding that share from stockholders' equity by a charge to operations
  2. b
    Recognizing that share as a credit to a liability relating to participating policyholders' funds.
Dividends declared or paid to participating policyholders shall reduce the liability recognized in (b); dividends declared or paid in excess of the liability shall be charged to operations.
","snippet":"This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. Limitations may exist on the amount of net income from participa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:836aa8378e30bc317a792474468fe25848acf4217f28d4ea9105bb55f0d5d154","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"citation":"944-50-25-3","para":"25-3","html":"
This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. For life insurance entities for which there are no net income restrictions and that use life insurance dividend scales unrelated to actual net income, policyholder dividends shall be accrued over the premium-paying periods of the contracts. Paragraph 944-740-25-1 states that, although payment is not required, a dividend recognized under this paragraph is considered a planned contractual benefit in computing generally accepted accounting principle (GAAP) liabilities, it may be necessary to identify the amount of this dividend to calculate deferred income taxes in those cases in which there is a question as to whether the dividend provision in the liabilities, together with the dividends paid or declared, may exceed the amount of dividends otherwise deductible for federal income tax purposes.
","snippet":"This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. For life insurance entities for which there are no net income re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff8857a26f620721370bbeb4cc422fcc5ed43dc8221ad50eb3a8b1aa160f9362","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f1c6c51d8443d1eec1da0dd46425b12cd44aaac55f577dac8c825717b2a7dd6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"block":"Long-Duration Contracts","heading":"Certain Long-Duration Participating Life Insurance Contracts","paragraphs":[{"citation":"944-50-25-4","para":"25-4","html":"
For long-duration participating life insurance contracts that meet the criteria in paragraph 944-20-15-3, annual policyholder dividends shall be expensed.
","snippet":"For long-duration participating life insurance contracts that meet the criteria in paragraph 944-20-15-3, annual policyholder dividends shall be expensed.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:247d4c451b6b1edd7dc7272797c7dc0d15079ad9ec2a86d9cba30a56067aad2f","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"citation":"944-50-25-5","para":"25-5","html":"
See paragraphs 944-40-25-30 and
944-40-35-22 through 35-23
for guidance on accounting for terminal dividends as part of the liability for future policyholder benefits.
","snippet":"See paragraphs 944-40-25-30 and 944-40-35-22 through 35-23 for guidance on accounting for terminal dividends as part of the liability for future policyholder benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c1c09e3f05661f1c857d0adf100b9ea1aac7a0dd07041832d7fd9c6d8c54dc2","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0b3ea740fbc712b9ec3159624ac94dacddbe7a8defd8e7336e60a0cc5dab251","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7960f30980e611c8db457e0d8cb09b24d6c40efdd9e02ab8045e59ae2d0deb6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Participating Contracts","paragraphs":[{"citation":"944-50-30-1","para":"30-1","html":"
Policyholder dividends accrued under paragraph 944-50-25-1 shall be measured using an estimate of the amount to be paid.
","snippet":"Policyholder dividends accrued under paragraph 944-50-25-1 shall be measured using an estimate of the amount to be paid.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be392af8a811b04f19b9da6ff9124cfb85e2d8d44e328fa0acf200730cb66a3b","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}},{"citation":"944-50-30-2","para":"30-2","html":"
Income-based dividend provisions for participating contracts other than those long-duration participating life insurance contracts that meet the criteria in paragraph 944-20-15-3, shall be based on net income that includes adjustments between general-purpose and statutory financial statements that will reverse and enter into future calculations of the dividend provision.
","snippet":"Income-based dividend provisions for participating contracts other than those long-duration participating life insurance contracts that meet the criteria in paragraph 944-20-15-3, shall be based on net income that includ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e06d476c128439a457b86cc128025f0f19cb031a9f7f639e548d2733be250f06","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}},{"citation":"944-50-30-3","para":"30-3","html":"
Policyholder dividends shall be recognized over the premium-paying periods under paragraph 944-50-25-3 based on dividends anticipated or intended in determining gross premiums or as shown in published dividend illustrations at the date insurance contracts are made.
","snippet":"Policyholder dividends shall be recognized over the premium-paying periods under paragraph 944-50-25-3 based on dividends anticipated or intended in determining gross premiums or as shown in published dividend illustrati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:604b8d730026ccfc1e6f7a0d9b0942bce88b3c026f9695211c4f446c24d59e88","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0fed04873f5d71c5898f3414b2ed5cd020da933844b8fcd9b20f68e9c8d2139f","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}},{"block":"Long-Duration Contracts","heading":"Certain Long-Duration Participating Life Insurance Contracts","paragraphs":[{"citation":"944-50-30-4","para":"30-4","html":"
The expense recognized under paragraph 944-50-25-4 for annual policyholder dividends shall be based on estimates of amounts incurred for the policies in effect during the period.
","snippet":"The expense recognized under paragraph 944-50-25-4 for annual policyholder dividends shall be based on estimates of amounts incurred for the policies in effect during the period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3bfc152d0533337177ecea1d542e7d248c5d7d396439731d9f6884d53b21767","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}},{"citation":"944-50-30-5","para":"30-5","html":"
For example, if a policy has an anniversary date of June 30, at which time annual dividends are paid, at December 31, 19X1, dividends should be accrued for the period July 1, 19X1, through December 31, 19X1.
","snippet":"For example, if a policy has an anniversary date of June 30, at which time annual dividends are paid, at December 31, 19X1, dividends should be accrued for the period July 1, 19X1, through December 31, 19X1.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac6825dcb84bf46cb8ca5d6b82da07dd4ee52a3272a84fd2615477f353adafe3","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19065ac184007d54363f35171afa8a6480ab72ce62ca86f594256471881ccb7c","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c4926d41d74023b5b08a43cb3470ec1d0aabd66942ee8819b8847382143404f","downloaded_from":"2026-09-10T02:17:31.739Z","last_downloaded_at":"2026-09-10T02:17:31.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479816","source_sha256":"26da8229c8476a77ea4f8384ebcb4429db5deb32c70dc88abc0e5d0fb324ce22"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":"Certain Long-Duration Participating Life Insurance Contracts","paragraphs":[{"citation":"944-50-45-1","para":"45-1","html":"
The expense recognized under paragraph 944-50-25-4 for annual policyholder dividends shall be reported separately in the statement of earnings.
","snippet":"The expense recognized under paragraph 944-50-25-4 for annual policyholder dividends shall be reported separately in the statement of earnings.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ca45ab999a049241ae8ba08140a384e583b100f9eeeef42ce9fb140c97b4c060","downloaded_from":"2026-09-10T02:17:34.746Z","last_downloaded_at":"2026-09-10T02:17:34.746Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479787","source_sha256":"f56f1be848f98e98d091a16381550636f6a2bb4a16f53532a84f5e6b0b478dfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e24bfab1a7714eb2cc305487a56e7622110b1b9c229220a5d04e709fdf505f0d","downloaded_from":"2026-09-10T02:17:34.746Z","last_downloaded_at":"2026-09-10T02:17:34.746Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479787","source_sha256":"f56f1be848f98e98d091a16381550636f6a2bb4a16f53532a84f5e6b0b478dfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81af3b079d8e174754c050367af9a1dc8a149fbdfdc9c6d5a3c023eca507d792","downloaded_from":"2026-09-10T02:17:34.746Z","last_downloaded_at":"2026-09-10T02:17:34.746Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479787","source_sha256":"f56f1be848f98e98d091a16381550636f6a2bb4a16f53532a84f5e6b0b478dfe"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Participating Contracts","paragraphs":[{"citation":"944-50-50-1","para":"50-1","html":"
Insurance entities shall disclose all of the following in their financial statements:
  1. a
    The relative percentage of participating insurance
  2. b
    The method of accounting for policyholder dividends
  3. c
    The amount of dividends
  4. d
    The amount of any additional income allocated to participating policyholders.
","snippet":"Insurance entities shall disclose all of the following in their financial statements:\n(a) The relative percentage of participating insurance\n(b) The method of accounting for policyholder dividends\n(c) The amount of divid…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:34b013d3a46ed92dd91097b238a5f474e4d52fd2569f7d9ae75fa2865af2ab3d","downloaded_from":"2026-09-10T02:17:37.723Z","last_downloaded_at":"2026-09-10T02:17:37.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479756","source_sha256":"bed34a7d82e1999e65cf66dbe1be431149840294158f416af13840f94c42cfad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9a9a9ae170608ff7e0a4cdc003c3c22c60097f4e32a21ad492a6699b2836e2c","downloaded_from":"2026-09-10T02:17:37.723Z","last_downloaded_at":"2026-09-10T02:17:37.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479756","source_sha256":"bed34a7d82e1999e65cf66dbe1be431149840294158f416af13840f94c42cfad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:edd62cbd7ecf05d0928bb6e9035547b3e7e64f89fc92be6db16ba8071a445200","downloaded_from":"2026-09-10T02:17:37.723Z","last_downloaded_at":"2026-09-10T02:17:37.723Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479756","source_sha256":"bed34a7d82e1999e65cf66dbe1be431149840294158f416af13840f94c42cfad"}}],"enrichment":{"summary":"ASC 944-50 governs how insurance entities account for and report policyholder dividends on participating insurance contracts. For participating contracts other than the long-duration participating life contracts described in 944-20-15-3, dividends are accrued (measured at an estimate of the amount to be paid, or recognized over the premium-paying period using anticipated/illustrated dividend scales), and any policyholders' share of net income that cannot be distributed to stockholders is charged to operations and credited to a participating policyholders' funds liability. For long-duration participating life contracts meeting 944-20-15-3, annual policyholder dividends are expensed based on amounts incurred for policies in force and reported separately in the statement of earnings.","key_points":["Policyholder dividends on participating contracts other than the long-duration participating life contracts identified in 944-20-15-3 shall be accrued (944-50-25-1), measured using an estimate of the amount to be paid (944-50-30-1).","When limitations exist on the net income from participating contracts distributable to stockholders, the nondistributable policyholders' share is excluded from stockholders' equity by a charge to operations and credited to a liability for participating policyholders' funds; dividends declared or paid reduce that liability, and any excess is charged to operations (944-50-25-2).","For life insurance entities with no net income restrictions that use dividend scales unrelated to actual net income, dividends are accrued over the premium-paying periods (944-50-25-3), based on dividends anticipated or intended in setting gross premiums or shown in published dividend illustrations at contract inception (944-50-30-3).","Income-based dividend provisions must be based on net income that includes GAAP-to-statutory adjustments that will reverse and enter into future dividend calculations (944-50-30-2).","For long-duration participating life insurance contracts meeting the criteria in 944-20-15-3, annual policyholder dividends are expensed based on estimates of amounts incurred for policies in effect during the period (944-50-25-4; 944-50-30-4), with pro rata accrual between anniversary dates (944-50-30-5).","That annual policyholder dividend expense must be reported separately in the statement of earnings (944-50-45-1).","Required disclosures are the relative percentage of participating insurance, the method of accounting for policyholder dividends, the amount of dividends, and the amount of any additional income allocated to participating policyholders (944-50-50-1)."],"categories":["Industry-specific","Recognition","Presentation","Disclosure"],"audience_level":"intermediate","student_note":"The whole subtopic turns on one fork: whether the contract is a long-duration participating life contract meeting 944-20-15-3 (dividends expensed as incurred and shown separately) or any other participating contract (dividends accrued, sometimes over the premium-paying period, with a policyholders' funds liability when distributions to stockholders are restricted). Students commonly forget that terminal dividends are not covered here — they are handled in the liability for future policyholder benefits under 944-40-25-30 and 944-40-35-22 through 35-23.","related_topics":["944-20","944-40","944-10","944-740","944-30"],"key_concepts":["policyholder dividends","participating insurance contracts","long-duration contracts","participating policyholders' funds liability","dividend scales","terminal dividends","premium-paying period accrual"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d34243dcefab1ddb04a43a8154717959c50fc69b62a60aa0a0acc3a06b3ac1e","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:40.431Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"815-944","title":"Financial Services—Insurance","topic_title":"Derivatives and Hedging","score":0.7333,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48b4f2d44b0dee36ad0ec5970d94ce9bd48135b372d8c3ff16860a181acc8013","downloaded_from":"2026-09-10T01:40:24.221Z","last_downloaded_at":"2026-09-10T01:40:44.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"740-944","title":"Financial Services—Insurance","topic_title":"Income Taxes","score":0.7314,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bbd18d399d403cc8da9aa8c1574c31ef61d448da785d71a3328338680db0d24f","downloaded_from":"2026-09-10T01:20:36.911Z","last_downloaded_at":"2026-09-10T01:20:53.539Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"505-944","title":"Financial Services—Insurance","topic_title":"Equity","score":0.7096,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48a39955f608b5199072505e8dd5fb7767c50c2fd89663efa256756d9ccffafc","downloaded_from":"2026-09-10T00:40:25.190Z","last_downloaded_at":"2026-09-10T00:40:41.119Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-60","title":"Premium Deficiency and Loss Recognition","topic_title":"Financial Services—Insurance","score":0.7083,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f37e4d2aad9bbd5c3a53bc84b9d2838d6d66abafcb8fb18a4f3576c76fa879a3","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:18:05.734Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"805-944","title":"Financial Services—Insurance","topic_title":"Business Combinations","score":0.7049,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69da558953cea5d068dfcebb4386069d03c755524eccf1364fb9e6c965e200ee","downloaded_from":"2026-09-10T01:26:39.788Z","last_downloaded_at":"2026-09-10T01:27:09.747Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-80","title":"Separate Accounts","topic_title":"Financial Services—Insurance","score":0.6987,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a40ba5d937f19180c1bd50deab863f2bb16e7c7bc748e944cb73dc4bacc52f5","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:42.131Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"944-40","title":"Claim Costs and Liabilities for Future Policy Benefits","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:acc3cfcdcb0752a90e25887f730a52a31047f891826e36bc2003a2910dc95d12","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 timestamps"}},"next":{"number":"944-60","title":"Premium Deficiency and Loss Recognition","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd81bfd9e4369007fea8d59bf51a95e24e3f242e86c8da0d818abc76062b49da","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:18:05.734Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c4f8f1233a83d118f201fd5cd2b87293b0dd0d90204a1208e959411a3b0f282","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:40.431Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-60","topic":"944","title":"Premium Deficiency and Loss Recognition","area":"Industry","paragraphs":28,"summary":"ASC 944-60 tells insurance entities when and how to recognize a premium deficiency (loss recognition) on insurance contracts, with separate guidance for short-duration and long-duration contracts. For short-duration contracts, a deficiency exists when expected claim costs and claim adjustment expenses, expected policyholder dividends, unamortized acquisition costs, and maintenance costs exceed related unearned premiums; it is recognized first by writing off unamortized acquisition costs and then by accruing a liability for any excess (944-60-25-4 through 25-6). For long-duration contracts, if actual experience shows existing contract liabilities plus the present value of future gross premiums will not cover future benefits and settlement costs and recover unamortized present value of future profits, the deficiency is charged to income by reducing the present value of future profits or increasing the liability for future policy benefits (944-60-25-7 through 25-8).","concepts":["premium deficiency","loss recognition","short-duration contracts","long-duration contracts","unamortized acquisition costs","liability for future policy benefits","present value of future profits","anticipated investment income"],"categories":["Industry-specific","Impairment","Subsequent measurement","Disclosure"],"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":"944-60-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Acquisition CostsAmendedAccounting Standards Update No. 2010-2610/13/2010
Dividends to PolicyholdersAddedAccounting Standards Update No. 2014-0603/14/2014
944-60-15-5AmendedAccounting Standards Update No. 2018-1208/15/2018
944-60-25-4AmendedAccounting Standards Update No. 2014-0603/14/2014
944-60-25-7AmendedAccounting Standards Update No. 2018-1208/15/2018
944-60-25-8AmendedAccounting Standards Update No. 2018-1208/15/2018
944-60-30-1AmendedAccounting Standards Update No. 2018-1208/15/2018
944-60-30-2AmendedAccounting Standards Update No. 2018-1208/15/2018
944-60-35-2AmendedAccounting Standards Update No. 2014-0603/14/2014
944-60-35-5AmendedAccounting Standards Update No. 2018-1208/15/2018
944-60-50-2AmendedAccounting Standards Update No. 2025-1112/08/2025
944-60-50-2AddedAccounting 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| | | |\nAcquisition Costs | Amended | Accounting Standards Update No. 2010-26 | 10/13/2010 |\nDiv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a3dc60c40bdcc4e1f949b956ecf4b4ced65d5444f64d12893573fc298e057a81","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:17:42.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479695","source_sha256":"36f6c8e35e72fa497209ab8d84b73635445f13d1dd7b84c5394497d15434a836"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:858e930ffe134f03576c85c1330d1b708104b4b9f346792d05d3bece708ba494","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:17:42.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479695","source_sha256":"36f6c8e35e72fa497209ab8d84b73635445f13d1dd7b84c5394497d15434a836"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:26315cd0cdce628908c5f919cbf74e8e705996cd9098656d5ffda86b0aa405ed","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:17:42.336Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479695","source_sha256":"36f6c8e35e72fa497209ab8d84b73635445f13d1dd7b84c5394497d15434a836"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-60-05-1","para":"05-1","html":"
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.
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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.
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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.
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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4bda5470618244ea82852613c22477914637af66ee13cec657ab8bc3330f564","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1b1e12671ca4f478fdfd14c02c298b664e7b8641a6cac474cc9d9939d2a3b04","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}},{"block":"Short-Duration Contracts","heading":"Overall Guidance","paragraphs":[{"citation":"944-60-15-2","para":"15-2","html":"
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.
","snippet":"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.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:706d3ea821f05e09cf6d581b786756f0350f70a90cf04e2c80dcc0d011379a3a","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a16133d74f85248ae520df62ba11a2ec5428fdcefe647f75e013c4a408ae113","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}},{"block":"Short-Duration Contracts","heading":"Instruments","paragraphs":[{"citation":"944-60-15-3","para":"15-3","html":"
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, except for the liability for future policy benefits for traditional and limited-payment contracts subject to the guidance in paragraph 944-40-25-11. Paragraph 944-30-35-63 specifies that the present value of future profits relating to insurance (including traditional and limited-payment) and reinsurance contracts acquired is subject to premium deficiency testing in accordance with the provisions of this Subtopic (see paragraph 944-805-35-3). See the Long-Duration Contracts Subsection of Section 944-20-15 for a discussion of what constitutes a long-duration contract.
","snippet":"The guidance in the Long-Duration Contracts Subsections of this Subtopic applies to long-duration contracts, except for the liability for future policy benefits for traditional and limited-payment contracts subject to th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7803e2a9dc91e7b6f018109310e6692f839afd34ed16dd5ac518e9d7e64e384","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14a4cea635954b0c14dec3a14c752e38a15d49038bd70a0708912c3f51330ff9","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2cba22fc143dff9d7c5f21919de3cbc97dad948c9d662665134ecdbb20293897","downloaded_from":"2026-09-10T02:17:46.601Z","last_downloaded_at":"2026-09-10T02:17:46.601Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479633","source_sha256":"277bbfde21b2ed5d8890f7e0a2ce8f5392569df86e79011d2b34a4bdea597919"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-60-25-1","para":"25-1","html":"
Paragraph 450-20-55-17A states that Subtopic 450-20 does not prohibit (and, in fact, requires) accrual of a net loss (that is, a loss in excess of deferred premiums) that probably will be incurred on insurance policies that are in force, provided that the loss can be reasonably estimated.
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A probable loss on insurance contracts exists if there is a premium deficiency relating to short-duration or long-duration contracts.
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Insurance contracts shall be grouped consistent with the entity's manner of acquiring, servicing, and measuring the profitability of its insurance contracts to determine if a premium deficiency exists.
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A premium deficiency shall be recognized if the sum of expected claim costs and claim adjustment expenses, expected dividends to policyholders, unamortized acquisition costs, and maintenance costs exceeds related unearned premiums.
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A premium deficiency shall first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency.
","snippet":"A premium deficiency shall first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:581cd94ff2195f06a54f40dc3c4c7fa46e47e48c9af24e07b5c1e08d3ec55b04","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}},{"citation":"944-60-25-6","para":"25-6","html":"
If the premium deficiency is greater than unamortized acquisition costs, a liability shall be accrued for the excess deficiency.
","snippet":"If the premium deficiency is greater than unamortized acquisition costs, a liability shall be accrued for the excess deficiency.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b9c43f025c9d60a4f9cb25a0e4ed1cf71336ecb7536c97eaae142b5d7cbdcca","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e35e0b35a92f52a49d7804e2d90b86a664bb0ea27e99adf3839d8107e8c80d16","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-60-25-7","para":"25-7","html":"
Original policy benefit assumptions for certain long-duration contracts ordinarily continue to be used during the periods in which the liability for future policy benefits is accrued under Subtopic 944-40. However, actual experience with respect to investment yields, mortality, morbidity, terminations, or expenses may indicate that existing contract liabilities, together with the present value of future gross premiums, will not be sufficient to do both of the following:
  1. a
    Cover the present value of future benefits to be paid to or on behalf of policyholders and settlement costs relating to a block of long-duration contracts
  2. b
    Recover unamortized present value of future profits.
","snippet":"Original policy benefit assumptions for certain long-duration contracts ordinarily continue to be used during the periods in which the liability for future policy benefits is accrued under Subtopic 944-40. However, actua…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc2af3f187b6297aca86a57e5a74cb1c24023317fd99ad4a3b73148a8c1927e0","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}},{"citation":"944-60-25-8","para":"25-8","html":"
The premium deficiency shall be recognized by a charge to income and either of the following:
  1. a
    A reduction of unamortized present value of future profits
  2. b
    An increase in the liability for future policy benefits.
","snippet":"The premium deficiency shall be recognized by a charge to income and either of the following:\n(a) A reduction of unamortized present value of future profits\n(b) An increase in the liability for future policy benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24abe308ee356c5151b0695aba8cbdba4195037596cf1eea871934928b3d8a3f","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}},{"citation":"944-60-25-9","para":"25-9","html":"
A premium deficiency, at a minimum, shall be recognized if the aggregate liability on an entire line of business is deficient. In some instances, the liability on a particular line of business may not be deficient in the aggregate, but circumstances may be such that profits would be recognized in early years and losses in later years. In those situations, the liability shall be increased by an amount necessary to offset losses that would be recognized in later years.
","snippet":"A premium deficiency, at a minimum, shall be recognized if the aggregate liability on an entire line of business is deficient. In some instances, the liability on a particular line of business may not be deficient in the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c657565222269fb43ef5e82b3a15d4d6a8155aae5537c53ed452adb075085dea","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd4bdb230cc5920bfcb0b32dcbc697e1a2fd37ac787c6301d9661becef9d90a3","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0235e67796427bb9192973d86208704526a18244c29786c970005af2c55fb4dc","downloaded_from":"2026-09-10T02:17:52.429Z","last_downloaded_at":"2026-09-10T02:17:52.429Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479573","source_sha256":"ec300e41b7845fba275caa7a69b40915f4f705725739fe91bd003c9941106b63"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-60-30-1","para":"30-1","html":"
If the conditions in paragraph 944-60-25-7 exist, an entity shall determine the liability for future policy benefits 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).
","snippet":"If the conditions in paragraph 944-60-25-7 exist, an entity shall determine the liability for future policy benefits using revised assumptions as the remainder of the present value of future payments for benefits and rel…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb5e197fb6e5393973039eba39aed540f6edd3ebcc8474794ee09a5175296257","downloaded_from":"2026-09-10T02:17:55.154Z","last_downloaded_at":"2026-09-10T02:17:55.154Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479543","source_sha256":"8a521f98e92770d6ee225cb0a0a5587bedab2ffe97b24834f598650a460e40d5"}},{"citation":"944-60-30-2","para":"30-2","html":"
A premium deficiency shall then be determined as the liability measured in paragraph 944-60-30-1minus the liability for future policy benefits at the valuation date, reduced by the unamortized present value of future profits.
","snippet":"A premium deficiency shall then be determined as the liability measured in paragraph 944-60-30-1minus the liability for future policy benefits at the valuation date, reduced by the unamortized present value of future pro…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:731ccd483c1edca48a71622a8490cd76d88f2759536b96e2b672127c22ee0bba","downloaded_from":"2026-09-10T02:17:55.154Z","last_downloaded_at":"2026-09-10T02:17:55.154Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479543","source_sha256":"8a521f98e92770d6ee225cb0a0a5587bedab2ffe97b24834f598650a460e40d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c26f415d951ed76b11be29b0d1b38cf7cda66c9ab77da55559083d68a80f39d","downloaded_from":"2026-09-10T02:17:55.154Z","last_downloaded_at":"2026-09-10T02:17:55.154Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479543","source_sha256":"8a521f98e92770d6ee225cb0a0a5587bedab2ffe97b24834f598650a460e40d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6dac3f7eb39a049ad73601509b61680f2931726f016cbfafba82b0fc59c3da57","downloaded_from":"2026-09-10T02:17:55.154Z","last_downloaded_at":"2026-09-10T02:17:55.154Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479543","source_sha256":"8a521f98e92770d6ee225cb0a0a5587bedab2ffe97b24834f598650a460e40d5"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-60-35-1","para":"35-1","html":"
Paragraph 450-20-55-17A states that Subtopic 450-20 does not prohibit (and, in fact, requires) accrual of a net loss (that is, a loss in excess of deferred premiums) that probably will be incurred on insurance policies that are in force, provided that the loss can be reasonably estimated.
","snippet":"Paragraph 450-20-55-17A states that Subtopic 450-20 does not prohibit (and, in fact, requires) accrual of a net loss (that is, a loss in excess of deferred premiums) that probably will be incurred on insurance policies t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe4605853b58ce968caa22e0e87a0fb4a4c827a174fc151893c11d7d25ee927f","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7ad834d250fa29df28e41899b87fa4b2716d5d2f8e57f235e613d6ccc89d10e","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}},{"block":"Short-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-60-35-2","para":"35-2","html":"
Paragraph 944-60-25-4 states that a premium deficiency shall be recognized if the sum of expected claim costs and claim adjustment expenses, expected dividends to policyholders, unamortized acquisition costs, and maintenance costs exceeds related unearned premiums.
","snippet":"Paragraph 944-60-25-4 states that a premium deficiency shall be recognized if the sum of expected claim costs and claim adjustment expenses, expected dividends to policyholders, unamortized acquisition costs, and mainten…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b8864d544b06f7685d65cc55c5b8d169cd810d69522e655c4a06e6f7e5ccb149","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}},{"citation":"944-60-35-3","para":"35-3","html":"
Paragraph 944-60-25-5 states that a premium deficiency shall first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency.
","snippet":"Paragraph 944-60-25-5 states that a premium deficiency shall first be recognized by charging any unamortized acquisition costs to expense to the extent required to eliminate the deficiency.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45e3557c0f5034f39f5acbe720ddd69c24f5e0807549d289cd374529d3bbfe9e","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}},{"citation":"944-60-35-4","para":"35-4","html":"
Paragraph 944-60-25-6 states that, if the premium deficiency is greater than unamortized acquisition costs, a liability shall be accrued for the excess deficiency.
","snippet":"Paragraph 944-60-25-6 states that, if the premium deficiency is greater than unamortized acquisition costs, a liability shall be accrued for the excess deficiency.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bcb0665d7c8d6023737c0335fd2ae2285a26c544cb434b3214a83347807c8f12","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d38d673fe475d537b87344ffae860cc742e17a561772998ac2b5be209a4fa9fa","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-60-35-5","para":"35-5","html":"
If a premium deficiency does occur, future changes in the liability shall be based on the revised assumptions. No loss shall be reported currently if it results in creating future income. The liability for future policy benefits using revised assumptions based on actual and anticipated experience shall be estimated periodically for comparison with the liability for future policy benefits (reduced by the unamortized present value of future profits) at the valuation date.
","snippet":"If a premium deficiency does occur, future changes in the liability shall be based on the revised assumptions. No loss shall be reported currently if it results in creating future income. The liability for future policy …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b035911dcbdf4f6ae96f4a92dffcda6cc2a113f769842d95b8742c12262911f1","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}},{"citation":"944-60-35-6","para":"35-6","html":"
The guidance in this Subsection shall not be applied to investment contracts (see the Investment Contracts Subsections of Subtopic 944-825). Such loss recognition is not permitted.
","snippet":"The guidance in this Subsection shall not be applied to investment contracts (see the Investment Contracts Subsections of Subtopic 944-825). Such loss recognition is not permitted.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:daa794829956cf63fb77e19255d172b335a0b2bef3720a52da09900dcd298a4a","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a48eb48e9c273b0bef82a5908bfa72bc9c4b78c24f54e7f87e8b4f09eb3593be","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:368ddc897eb7a1fd8197b3b93b2e22dde978580bf4545969b72298efbb80db23","downloaded_from":"2026-09-10T02:17:59.204Z","last_downloaded_at":"2026-09-10T02:17:59.204Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479513","source_sha256":"bfed2c9a8bc2cebf2feb528d102bcc9b9ae9262843f6b5c4a8933642abe16879"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":"Short-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-60-50-1","para":"50-1","html":"
An insurance entity shall disclose in its financial statements whether it considers anticipated investment income in determining if a premium deficiency relating to short-duration contracts exists.
","snippet":"An insurance entity shall disclose in its financial statements whether it considers anticipated investment income in determining if a premium deficiency relating to short-duration contracts exists.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e32018304669b5161b6ce7ca2a288c26bac9ad9d9ea41dc89c8812ab2c89cdc7","downloaded_from":"2026-09-10T02:18:01.966Z","last_downloaded_at":"2026-09-10T02:18:01.966Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479482","source_sha256":"d095d899f2343cba92aaaf470d7361c8a413d933785d16551cd3b46bb2f5394b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f2fb062b32f821aeaa0a11355509616844d6b6ded5fc65b861e46c407082752","downloaded_from":"2026-09-10T02:18:01.966Z","last_downloaded_at":"2026-09-10T02:18:01.966Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479482","source_sha256":"d095d899f2343cba92aaaf470d7361c8a413d933785d16551cd3b46bb2f5394b"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-60-50-2","para":"50-2","html":"
For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose the following:
  1. a
    The amount of a liability that is established as a result of a premium deficiency and loss recognition testing determined in accordance with paragraphs
    944-60-25-7 through 25-9
    and a description of the factors that led to the establishment of the liability
  2. b
    Information about the methodology used when performing premium deficiency testing in accordance with paragraphs
    944-60-25-7 through 25-9
  3. c
    Whether the entity considered anticipated investment income when performing premium deficiency testing in accordance with paragraphs
    944-60-25-7 through 25-9
    and, if so, what that assumption was.
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 the following:
  1. a
    The amount of a liability that is established as a result of a premium deficiency and loss recognition testing determined in accordance with paragraphs
    944-60-25-7 through 25-9
    and a description of the factors that led to the establishment of the liability
  2. b
    Information about the methodology used when performing premium deficiency testing in accordance with paragraphs
    944-60-25-7 through 25-9
  3. c
    Whether the entity considered anticipated investment income when performing premium deficiency testing in accordance with paragraphs
    944-60-25-7 through 25-9
    and, if so, what that assumption was.
","snippet":"For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose the following:\n(a) The amount of a liability that is established as a result of a premium def…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ab47f572fcb5a9d8e9eed6c5f5282de6c05bde812aad768bddb73273f487c3de","downloaded_from":"2026-09-10T02:18:01.966Z","last_downloaded_at":"2026-09-10T02:18:01.966Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479482","source_sha256":"d095d899f2343cba92aaaf470d7361c8a413d933785d16551cd3b46bb2f5394b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67ba6e033b80264190fc21148dea85d6e820919cd85db1f27d1f7af346ff88f9","downloaded_from":"2026-09-10T02:18:01.966Z","last_downloaded_at":"2026-09-10T02:18:01.966Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479482","source_sha256":"d095d899f2343cba92aaaf470d7361c8a413d933785d16551cd3b46bb2f5394b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3d3e7377bc855d298be8447c4e0c3b27648daa97479c9b48406507017f60c15","downloaded_from":"2026-09-10T02:18:01.966Z","last_downloaded_at":"2026-09-10T02:18:01.966Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479482","source_sha256":"d095d899f2343cba92aaaf470d7361c8a413d933785d16551cd3b46bb2f5394b"}}],"enrichment":{"summary":"ASC 944-60 tells insurance entities when and how to recognize a premium deficiency (loss recognition) on insurance contracts, with separate guidance for short-duration and long-duration contracts. For short-duration contracts, a deficiency exists when expected claim costs and claim adjustment expenses, expected policyholder dividends, unamortized acquisition costs, and maintenance costs exceed related unearned premiums; it is recognized first by writing off unamortized acquisition costs and then by accruing a liability for any excess (944-60-25-4 through 25-6). For long-duration contracts, if actual experience shows existing contract liabilities plus the present value of future gross premiums will not cover future benefits and settlement costs and recover unamortized present value of future profits, the deficiency is charged to income by reducing the present value of future profits or increasing the liability for future policy benefits (944-60-25-7 through 25-8).","key_points":["Contracts must be grouped consistent with the entity's manner of acquiring, servicing, and measuring the profitability of its insurance contracts to determine whether a premium deficiency exists (944-60-25-3).","A premium deficiency on short-duration contracts is recognized when expected claim costs and claim adjustment expenses, expected dividends to policyholders, unamortized acquisition costs, and maintenance costs exceed related unearned premiums (944-60-25-4).","The deficiency is recognized first by charging unamortized acquisition costs to expense, and only if the deficiency exceeds those costs is a liability accrued for the excess (944-60-25-5 through 25-6).","For long-duration contracts, revised assumptions based on actual and anticipated experience are used to remeasure the liability as the PV of future benefits and settlement costs minus the PV of future gross premiums; the deficiency is that amount minus the existing liability reduced by unamortized present value of future profits (944-60-30-1 through 30-2).","Once a deficiency occurs, future changes in the liability are based on the revised assumptions, and no loss may be reported currently if it results in creating future income (944-60-35-5).","A deficiency must at a minimum be recognized when an entire line of business is deficient in the aggregate; if profits would be recognized in early years and losses in later years, the liability is increased to offset the later-year losses (944-60-25-9).","Disclosures include whether anticipated investment income was considered in short-duration premium deficiency testing (944-60-50-1) and, for long-duration loss recognition, the liability amount and factors causing it, the methodology used, and the anticipated investment income assumption (944-60-50-2); loss recognition is not permitted for investment contracts (944-60-35-6)."],"categories":["Industry-specific","Impairment","Subsequent measurement","Disclosure"],"audience_level":"advanced","student_note":"Premium deficiency testing is the insurance analog of a loss contract accrual: it is done at the contract-grouping (often line-of-business) level, not contract by contract. A common misunderstanding is jumping straight to a liability — for short-duration contracts you must first write off unamortized acquisition costs, and note that long-duration traditional and limited-payment contracts under 944-40-25-11 are scoped out of this testing.","related_topics":["944-40","944-30","944-20","944-825","450-20","944-805"],"key_concepts":["premium deficiency","loss recognition","short-duration contracts","long-duration contracts","unamortized acquisition costs","liability for future policy benefits","present value of future profits","anticipated investment income"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac78935d81740857b208356a27490027c73989b1d71bb1daab5a5eacee39d858","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:18:05.734Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"605-944","title":"Financial Services—Insurance","topic_title":"Revenue Recognition","score":0.7696,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6807844cdc4566bf1155dcb35d7068b35311ac2acf7e6bf837958e10e60790e4","downloaded_from":"2026-09-10T00:49:17.918Z","last_downloaded_at":"2026-09-10T00:49:46.481Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-40","title":"Claim Costs and Liabilities for Future Policy Benefits","topic_title":"Financial Services—Insurance","score":0.7493,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f316897b7885b574ef9063cc20ccaea6d87942f796a8218bd5752177bc7cb1fc","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 timestamps"}},{"number":"310-944","title":"Financial Services—Insurance","topic_title":"Receivables","score":0.7335,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:80d6958df8a79a386e49c11454fd90dbf658b7f5be852cee76640ac2cefd2050","downloaded_from":"2026-09-09T23:29:42.889Z","last_downloaded_at":"2026-09-09T23:30:17.133Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"405-30","title":"Insurance-Related Assessments","topic_title":"Liabilities","score":0.7274,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3d941a6acc7bd8a9f143d673dc68b36ae417427e512fe9acd94bcee6fec219a","downloaded_from":"2026-09-10T00:14:14.713Z","last_downloaded_at":"2026-09-10T00:14:44.711Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"720-954","title":"Health Care Entities","topic_title":"Other Expenses","score":0.7258,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c97173cd1be1cbe9c5dc4be5898d9fc72e34f76691292471d40902d2ac1edcbd","downloaded_from":"2026-09-10T01:12:28.117Z","last_downloaded_at":"2026-09-10T01:12:54.691Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"815-944","title":"Financial Services—Insurance","topic_title":"Derivatives and Hedging","score":0.724,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:399ac13d2693878d393cdd3757005805b0f15159c45bd09b5dd33bd3c3693f46","downloaded_from":"2026-09-10T01:40:24.221Z","last_downloaded_at":"2026-09-10T01:40:44.205Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"944-50","title":"Policyholder Dividends","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1715aba4d97096bdf001d0278cbc8aed2a54247160f8cec353eeaaf6bd8e2e02","downloaded_from":"2026-09-10T02:17:16.793Z","last_downloaded_at":"2026-09-10T02:17:40.431Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"944-80","title":"Separate Accounts","topic_title":"Financial Services—Insurance","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1686e9fdfe24a8bb38af2c1059225a7869a5621677199f83f814afe80d2cf26b","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:42.131Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:063e2bd13473e5ffdbd3be387d2861f45c09e19c69faefa9c5c207b89fa331ad","downloaded_from":"2026-09-10T02:17:42.336Z","last_downloaded_at":"2026-09-10T02:18:05.734Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-80","topic":"944","title":"Separate Accounts","area":"Industry","paragraphs":58,"summary":"ASC 944-80 governs how an insurance entity accounts for and presents separate accounts — pools of assets and liabilities maintained to fund variable annuity, variable life, pension and similar contracts where the contract holder generally bears the investment risk. If a separate account arrangement meets the four criteria in 944-80-25-2 (legal recognition, legal insulation from general account liabilities, contract-holder-directed investment, and full pass-through of investment performance), the contract holder portion is measured at fair value and reported as a single summary total asset with an equivalent summary total liability, with investment performance and amounts credited offset to zero. If any criterion fails (e.g., guaranteed interest or market value adjusted \"spread\" products), the assets and liabilities are accounted for and presented as ordinary general account items.","concepts":["separate account","contract holder funds","pass-through of investment performance","legal insulation","seed money proportionate interest","summary total presentation","minimum guarantees and market risk benefits","variable annuity contracts"],"categories":["Industry-specific","Presentation","Fair value","Consolidation"],"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":"944-80-00-1","para":"00-1","html":"
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Cash Surrender ValueAddedAccounting Standards Update No. 2018-1208/15/2018
Guaranteed Minimum Accumulation BenefitSupersededAccounting Standards Update No. 2018-1208/15/2018
Guaranteed Minimum Income BenefitSupersededAccounting 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)SupersededAccounting Standards Update No. 2018-1208/15/2018
Policy Account BalanceAddedAccounting Standards Update No. 2018-1208/15/2018
Surrender ChargeAddedAccounting Standards Update No. 2018-1208/15/2018
944-80-25-3AmendedAccounting Standards Update No. 2018-1208/15/2018
944-80-25-3AmendedAccounting Standards Update No. 2010-1504/21/2010
944-80-25-9AmendedAccounting Standards Update No. 2016-1306/16/2016
944-80-25-9 through 25-11
AmendedAccounting Standards Update No. 2016-0101/05/2016
944-80-25-12AddedAccounting Standards Update No. 2010-1504/21/2010
944-80-35-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-80-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
944-80-35-2AmendedAccounting Standards Update No. 2012-0410/01/2012
944-80-35-4SupersededAccounting Standards Update No. 2014-0905/28/2014
944-80-35-10AmendedAccounting Standards Update No. 2012-0410/01/2012
944-80-50-1AmendedAccounting Standards Update No. 2025-1112/08/2025
944-80-50-1AmendedAccounting Standards Update No. 2018-1208/15/2018
944-80-50-2AddedAccounting Standards Update No. 2018-1208/15/2018
944-80-55-7SupersededAccounting Standards Update No. 2010-1504/21/2010
944-80-55-8AmendedAccounting Standards Update No. 2016-0101/05/2016
944-80-55-9AmendedAccounting Standards Update No. 2016-0101/05/2016
944-80-55-11AmendedAccounting Standards Update No. 2016-1306/16/2016
944-80-55-11AmendedAccounting Standards Update No. 2016-0101/05/2016
944-80-55-16AmendedAccounting Standards Update No. 2016-1306/16/2016
944-80-55-16AmendedAccounting Standards Update No. 2016-0101/05/2016
944-80-55-17 through 55-21
AddedAccounting Standards Update No. 2018-1208/15/2018
944-80-65-1AddedAccounting Standards Update No. 2010-1504/21/2010
","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nCash Surrender Value | Added | Accounting Standards Update No. 2018-12 | 08/15/2018 |\nGu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8dad8f873999471922107bfa243b5e5b3b4ff47efb34f1b4cddb39f06da44c5","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:08.530Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479423","source_sha256":"d02d57c5ec7e7bdd5b9faa33ce36eee34e7640b228f5d71a74bc0bdce396d9f1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:684ebd88423724bcb2b729d30e6c39b0c532515060aca16467cfd07cd84bb0cd","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:08.530Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479423","source_sha256":"d02d57c5ec7e7bdd5b9faa33ce36eee34e7640b228f5d71a74bc0bdce396d9f1"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0f63a7566a185c24652634a09b3cadfb78c992f0ee046b3d6c2dabc56e06c311","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:08.530Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479423","source_sha256":"d02d57c5ec7e7bdd5b9faa33ce36eee34e7640b228f5d71a74bc0bdce396d9f1"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-80-05-1","para":"05-1","html":"
This Subtopic provides insurance entities guidance on accounting for and financial reporting of separate accounts, including an insurance entity's accounting for separate account assets and liabilities related to contracts for which all or a portion of the investment risk is borne by the insurer.
","snippet":"This Subtopic provides insurance entities guidance on accounting for and financial reporting of separate accounts, including an insurance entity's accounting for separate account assets and liabilities related to contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b02a9c927e9345290ee34caa9f7526f82a88c7480d5d8e48fb88212cdc77c1c","downloaded_from":"2026-09-10T02:18:10.428Z","last_downloaded_at":"2026-09-10T02:18:10.428Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479396","source_sha256":"f22cdc227309930e361a7374f31e12d86297103d0beeb1797d5807c7d6087218"}},{"citation":"944-80-05-2","para":"05-2","html":"
Separate accounts represent assets and liabilities that are maintained by an insurance entity for purposes of funding fixed-benefit or variable annuity contracts, pension plans, and similar activities. The contract holder generally assumes the investment risk, and the insurance entity receives a fee for investment management, certain administrative expenses, and mortality and expense risks assumed.
","snippet":"Separate accounts represent assets and liabilities that are maintained by an insurance entity for purposes of funding fixed-benefit or variable annuity contracts, pension plans, and similar activities. The contract holde…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ab37487b133445fad11e56e4f84c2da8c7241e85949126b228ad4d25e83ec43","downloaded_from":"2026-09-10T02:18:10.428Z","last_downloaded_at":"2026-09-10T02:18:10.428Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479396","source_sha256":"f22cdc227309930e361a7374f31e12d86297103d0beeb1797d5807c7d6087218"}},{"citation":"944-80-05-3","para":"05-3","html":"
Often for administrative purposes, separate account subaccounts with differing investment objectives are created within a single separate account. Examples include both of the following:
  1. a
    A variable life insurance contract offered through an insurance entity's high return separate account
  2. b
    A contract holder's allocation of a portion of the contract holder's deposit in a deferred variable annuity to a growth equity fund.
","snippet":"Often for administrative purposes, separate account subaccounts with differing investment objectives are created within a single separate account. Examples include both of the following:\n(a) A variable life insurance con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed416373a75868978d759270df373d22b1ade361a2f0ffa853566928a2552031","downloaded_from":"2026-09-10T02:18:10.428Z","last_downloaded_at":"2026-09-10T02:18:10.428Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479396","source_sha256":"f22cdc227309930e361a7374f31e12d86297103d0beeb1797d5807c7d6087218"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b056baf714fc611a338732fd4a820b395b314b433ea5a4f2c777493fa6aa573","downloaded_from":"2026-09-10T02:18:10.428Z","last_downloaded_at":"2026-09-10T02:18:10.428Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479396","source_sha256":"f22cdc227309930e361a7374f31e12d86297103d0beeb1797d5807c7d6087218"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9801d61f138a9177ac002c0b093c73a02e54536a0c18dc0d5ceecbcd96cf1ae9","downloaded_from":"2026-09-10T02:18:10.428Z","last_downloaded_at":"2026-09-10T02:18:10.428Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479396","source_sha256":"f22cdc227309930e361a7374f31e12d86297103d0beeb1797d5807c7d6087218"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"944-80-15-1","para":"15-1","html":"
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.
","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ba9251d809902a9439a653c60be7086e21fb080f563e9ea149358b4332ab8e2","downloaded_from":"2026-09-10T02:18:14.210Z","last_downloaded_at":"2026-09-10T02:18:14.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479370","source_sha256":"3e814f88586c0af7826ab79123cb75df7ce1a79831f65fe33051ce9493798e4d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03d5b1cedb55066061ca60775ea5bea7174d53318c955c80693c1a10d37ac908","downloaded_from":"2026-09-10T02:18:14.210Z","last_downloaded_at":"2026-09-10T02:18:14.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479370","source_sha256":"3e814f88586c0af7826ab79123cb75df7ce1a79831f65fe33051ce9493798e4d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f31fafcd02f2fa6c9758aca80d5d780f0635c9d5f405a090b4134bdf6987bdb2","downloaded_from":"2026-09-10T02:18:14.210Z","last_downloaded_at":"2026-09-10T02:18:14.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479370","source_sha256":"3e814f88586c0af7826ab79123cb75df7ce1a79831f65fe33051ce9493798e4d"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Overall","paragraphs":[{"citation":"944-80-25-1","para":"25-1","html":"
Separate account assets and liabilities shall be included in the financial statements of the insurance entity that owns the assets and is contractually obligated to pay the liabilities.
","snippet":"Separate account assets and liabilities shall be included in the financial statements of the insurance entity that owns the assets and is contractually obligated to pay the liabilities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0926001e11e737ec2f363bf5b6c119d1e888fa09fada42b854e966d865f623b7","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-2","para":"25-2","html":"
The guidance in the following paragraph applies if the separate account arrangement meets all of the following conditions:
  1. a
    The separate account is recognized legally; that is, the separate account is established, approved, and regulated under special rules such as state insurance laws, federal securities laws, or similar foreign laws.
  2. b
    The separate account assets supporting the contract liabilities are insulated legally from the general account liabilities of the insurance entity; that is, the contract holder is not subject to insurer default risk to the extent of the assets held in the separate account.
  3. c
    The insurer must, as a result of contractual, statutory, or regulatory requirements, invest the contract holder's funds within the separate account as directed by the contract holder in designated investment alternatives or in accordance with specific investment objectives or policies.
  4. d
    All investment performance, net of contract fees and assessments, must as a result of contractual, statutory, or regulatory requirements be passed through to the individual contract holder. Contracts may specify conditions under which there may be a minimum guarantee, but not a ceiling, as a ceiling would prohibit all investment performance from being passed through to the contract holder.
","snippet":"The guidance in the following paragraph applies if the separate account arrangement meets all of the following conditions:\n(a) The separate account is recognized legally; that is, the separate account is established, app…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:caa0ac2f5765cb48806ef70c372948c625c07859f46436ea029aea003f4a2a43","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-3","para":"25-3","html":"
All of the following guidance applies if a separate account arrangement meets all of the conditions paragraph 944-80-25-2:
  1. a
    The portion of separate account assets representing contract holder funds shall be reported in the insurance entity's financial statements as a summary total, with an equivalent summary total reported for related liabilities.
  2. b
    Any liabilities related to minimum guarantees (including market risk benefits) and insurance benefit liabilities under the contracts in excess of the fair value of separate account assets representing contract holder funds shall be recognized as general account liabilities.
  3. c
    Contract fees and assessments shall be reported in accordance with paragraph 944-605-25-5.
  4. d
    For the purpose of evaluating the retention of specialized accounting for investments in consolidation as described in paragraph 810-10-25-15, a separate account arrangement shall be considered a subsidiary. An insurer is not required to consolidate an investment in which a separate account holds a controlling financial interest if the investment is not or would not be consolidated in the standalone financial statements of the separate account.
  5. e
    Except as described in paragraph (f), the insurer shall not do either of the following when assessing whether the insurer is required to consolidate an investment held by a separate account:
    1. 1
      Consider any separate account interests held for the benefit of policy holders to be the insurer's interests
    2. 2
      Combine any separate account interests held for the benefit of policy holders with the insurer's general account interest in the same investment.
  6. f
    Separate account interests held for the benefit of a related party policy holder shall be combined with the insurer's general account interest when the Variable Interest Entities Subsections of Subtopic 810-10 require the consideration of related parties. For this purpose, a related party includes any party identified in paragraph 810-10-25-43 other than:
    1. 1
      An employee of the decision maker or service provider (and its other related parties), except if the employee is used in an effort to circumvent the provisions of Subtopic 810-10
    2. 2
      An employee benefit plan of the decision maker or service provider (and its other related parties), except if the employee benefit plan is used in an effort to circumvent the provisions of Subtopic 810-10.
","snippet":"All of the following guidance applies if a separate account arrangement meets all of the conditions paragraph 944-80-25-2:\n(a) The portion of separate account assets representing contract holder funds shall be reported i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6845d1aa37d4f1de7b093b26af21eaafc9ccb62ef1570c1c868c92e37bc3b9f0","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-4","para":"25-4","html":"
All of the following guidance applies if a separate account arrangement does not meet all of the criteria in paragraph
944-80-25-2 through 25-3
:
  1. a
    Assets representing contract holder funds under the arrangement shall be measured and presented the same as other general account assets as prescribed in this Topic.
  2. b
    Any related liability shall be accounted for as a general account liability.
  3. c
    Revenue and expenses related to such arrangements shall be recognized within the respective revenue and expense lines in the statement of operations.
","snippet":"All of the following guidance applies if a separate account arrangement does not meet all of the criteria in paragraph 944-80-25-2 through 25-3:\n(a) Assets representing contract holder funds under the arrangement shall b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f4b18b1d23e2e769732779575b7fabbb06dd15fe5967eb93301166fee1bd496","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-5","para":"25-5","html":"
Arrangements in which contract holders' funds are maintained in separate accounts to fund fixed account options of variable contracts, market value adjusted contracts, guaranteed investment contracts, and indexed contracts are examples of separate account arrangements that would not meet the criteria in paragraphs
944-80-25-2 through 25-3
because all of the investment performance on these investments is not passed through to the contract holder.
","snippet":"Arrangements in which contract holders' funds are maintained in separate accounts to fund fixed account options of variable contracts, market value adjusted contracts, guaranteed investment contracts, and indexed contrac…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0237f9dc49e336e7dc876270cb3ead825a84884fe9a553accef063333ec1fbec","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:75c0076972a3aeec9fc5a874d35c164e3828b852fd33816348f9fffa1231031e","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"block":null,"heading":"Proportionate Interest in a Separate Account","paragraphs":[{"citation":"944-80-25-6","para":"25-6","html":"
Assets underlying an insurance entity's proportionate interest in a separate account (seed money or other investment) do not represent contract holder funds, and thus do not qualify for separate account accounting and reporting.
","snippet":"Assets underlying an insurance entity's proportionate interest in a separate account (seed money or other investment) do not represent contract holder funds, and thus do not qualify for separate account accounting and re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d19f9d6fc84a05cdfde3848e203dc0cf03e00cbb6d86e1246bf1387945ad2f7e","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-7","para":"25-7","html":"
The insurance entity shall look through the separate account for purposes of accounting for its interest therein, and account for and classify the assets of the separate account underlying that interest based on their nature as if the assets of the separate account underlying the insurance entity's proportionate interest were held directly by the general account rather than through the separate account structure. Example 2 (see paragraph 944-80-55-4) illustrates the application of this guidance.
","snippet":"The insurance entity shall look through the separate account for purposes of accounting for its interest therein, and account for and classify the assets of the separate account underlying that interest based on their na…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ed1adad455abc358ea715b9331075f09f909d403ac97eef097191c4a927b1f7","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-8","para":"25-8","html":"
The guidance in the following paragraph applies if a separate account arrangement meets the criteria in paragraphs
944-80-25-2 through 25-3
and either of the following conditions exists:
  1. a
    The terms of the contract allow the contract holder to invest in additional units in the separate account.
  2. b
    The insurance entity is marketing contracts that permit funds to be invested in the separate account.
","snippet":"The guidance in the following paragraph applies if a separate account arrangement meets the criteria in paragraphs 944-80-25-2 through 25-3 and either of the following conditions exists:\n(a) The terms of the contract all…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:741cb430e41d65d512907ebe1b5711a6f4af6777c8e087d54c2026044d4e756b","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-9","para":"25-9","html":"
If the conditions in the preceding paragraph are met, the assets of the separate account underlying the insurance entity's proportionate interest in the separate account shall be accounted for in a manner consistent with the accounting for similar assets held by the general account that the insurance entity may be required to sell. For example:
  1. a
    For a debt security, the guidance in Topic 326 shall be followed for the measurement of credit losses.
  2. b
    The guidance in Subtopic 360-10 shall be followed for both real estate that is held for sale and real estate that is not held for sale. For real estate that does not meet that Subtopic's held-for-sale criteria, the impairment test shall be performed solely using undiscounted cash flows assuming immediate disposition.
","snippet":"If the conditions in the preceding paragraph are met, the assets of the separate account underlying the insurance entity's proportionate interest in the separate account shall be accounted for in a manner consistent with…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:decbd643a13264d35c2550e17a83ea05034bc11b1b24685512bb99b12bcb1cf6","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-10","para":"25-10","html":"
The guidance in paragraphs
944-80-25-6 through 25-9
shall be applied also if either of the following conditions exists:
  1. a
    An insurance entity's interest in the separate account represents 20 percent or greater of the separate account interest.
  2. b
    The underlying investments are other than those that meet the definition of any of the following:
    1. 1
      Securities under Subtopic 320-10 or 321-10
    2. 2
      Subparagraph superseded by Accounting Standards Update No. 2016-01.
    3. 3
      Cash and cash equivalents.
","snippet":"The guidance in paragraphs 944-80-25-6 through 25-9 shall be applied also if either of the following conditions exists:\n(a) An insurance entity's interest in the separate account represents 20 percent or greater of the s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c80fdae5eb575e7feaa005103a0b4f5c92cfec6cee21624d0f9c020bf4efd2b4","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"citation":"944-80-25-11","para":"25-11","html":"
An insurance entity may report its portion of the separate account value as an investment in equity securities under Subtopic 321-10 if both of the following conditions are met:
  1. a
    The insurance entity's proportionate interest in the separate account is less than 20 percent of the separate account.
  2. b
    All of the underlying investments of the separate account meet the definition of any of the following:
    1. 1
      Securities under Subtopic 320-10 or 321-10
    2. 2
      Subparagraph superseded by Accounting Standards Update No. 2016-01
    3. 3
      Cash and cash equivalents.
","snippet":"An insurance entity may report its portion of the separate account value as an investment in equity securities under Subtopic 321-10 if both of the following conditions are met:\n(a) The insurance entity's proportionate i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bea4ce1c8b0f97200c390ca1d1128848be87711300471525a59993f155a40220","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e2db9669abd3909b87b30c0e7445ad0d6d9f35fd3abb12cb84fdd24d8779805d","downloaded_from":"2026-09-10T02:18:19.980Z","last_downloaded_at":"2026-09-10T02:18:19.980Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479325","source_sha256":"0b191ad4e75a7c53bbf921696ccd9cb4c63fa8561e23388865aba61adb47de29"}},{"block":null,"heading":"Consolidation of an Investment Fund When Separate Accounts Are Involved","paragraphs":[{"citation":"944-80-25-12","para":"25-12","html":"
If an insurer concludes that an investment fund should be consolidated and a portion of the fund is owned by the insurer's separate accounts, the insurer should consolidate the investment fund in the following manner:
  1. a
    The portion of the fund assets representing the contract holder's interests shall be included as separate account assets and liabilities in accordance with paragraph 944-80-25-3.
  2. b
    The remaining portion of the fund assets (including the portion owned by any other investors) shall be included in the general account of the insurer on a line-by-line basis. For example, if the consolidated fund held debt and equity securities, those amounts would be included in the debt and securities lines.
  3. c
    Noncontrolling interests should not be included in the separate account liability but rather classified as a liability or equity based on other applicable guidance.
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The portion of separate account assets representing contract holder funds recognized under paragraph 944-80-25-3 shall be measured initially at fair value.
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Investments in separate accounts shall be reported at fair value except for separate account contracts with guaranteed investment returns. For those separate accounts, the related assets shall be reported in accordance with paragraph 944-80-25-4.
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The portion of separate account assets representing contract holder funds recognized under paragraph 944-80-25-3 shall be measured subsequently at fair value.
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Paragraph 944-80-40-1 states that assets transferred from the general account to a separate account shall be recognized at fair value to the extent of the third-party contract holders' proportionate interests in the separate account if the separate account arrangement meets the criteria in paragraph 944-80-25-2. That paragraph states that any resulting gain related to the third-party contract holders' proportionate interest shall be recognized immediately in earnings of the general account of the insurance entity provided that the risks and rewards of ownership have been transferred to contract holders using the fair value of the asset at the date of the contract holders' assumption of risks and rewards.
","snippet":"Paragraph 944-80-40-1 states that assets transferred from the general account to a separate account shall be recognized at fair value to the extent of the third-party contract holders' proportionate interests in the sepa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21d74d88cfabed3985f0b31cb1cfaae84cc67569b62bb1f3977510f6edfad5ec","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-4","para":"35-4","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
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A guarantee of the asset's value or minimum rate of return or a commitment to repurchase the asset would not transfer the risks of ownership, and no gain shall be recognized.
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If the separate account arrangement does not meet the criteria in paragraph 944-80-25-2, the transfer shall have no financial reporting effect; that is, general account classification and carrying amounts shall be retained.
","snippet":"If the separate account arrangement does not meet the criteria in paragraph 944-80-25-2, the transfer shall have no financial reporting effect; that is, general account classification and carrying amounts shall be retain…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf7a8fa2121e85dfd24da3c676e2fbd1c4a36ee76a010a882ed10119b591b9b2","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-7","para":"35-7","html":"
The insurance entity shall recognize an impairment loss on an asset transferred from the general account to a separate account not meeting the criteria in paragraph 944-80-25-2 if the terms of the arrangement with the contract holder are such that the insurance entity will not be able to recover the asset's carrying value.
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The insurance entity shall recognize an impairment loss on its proportionate interest in a separate account arrangement meeting the criteria in paragraph 944-80-25-2 in a situation where the current fair value of the insurance entity's proportionate interest in the separate account assets is less than its carrying amount.
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If third-party contract holders' proportionate interests in the separate account are subsequently increased, or the insurance entity otherwise reduces its proportionate interest in the separate account arrangement that meets the criteria in paragraph 944-80-25-2, the reduction in the insurance entity's proportionate interest may result in additional gain.
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If an insurance entity's proportionate interest subsequently increases as a result of transactions executed at fair value, the increase is considered a purchase from the contract holder and shall be recognized at fair value.
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Assets transferred from the general account to a separate account shall be recognized at fair value to the extent of the third-party contract holders' proportionate interests in the separate account if the separate account arrangement meets the criteria in paragraph 944-80-25-2. Any resulting gain related to the third-party contract holders' proportionate interest shall be recognized immediately in earnings of the general account of the insurance entity provided that the risks and rewards of ownership have been transferred to contract holders using the fair value of the asset at the date of the contract holders' assumption of risks and rewards.
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If the transferred asset is subsequently sold by the separate account, any remaining unrecognized gain related to the insurance entity's proportionate interest shall be recognized immediately in the earnings of the general account of the insurance entity.
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If third-party contract holders' proportionate interests in the separate account are subsequently increased, or the insurance entity otherwise reduces its proportionate interest in the separate account arrangement that meets the criteria in paragraph 944-80-25-2, the reduction in the insurance entity's proportionate interest may result in additional gain.
","snippet":"If third-party contract holders' proportionate interests in the separate account are subsequently increased, or the insurance entity otherwise reduces its proportionate interest in the separate account arrangement that m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9859a8e69e01cea96aa205a9ba908f6b92b717b3f9fa527206ea74895e0c07fa","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479249","source_sha256":"7534cd4cdcd033f86a62e32c531553ebb69ced9ad01ca81cadab5b6bb64972d2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50a0e080b8cb59424f85004cb9a1c5679e31a898040a1e2fe3e652c2e9381365","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479249","source_sha256":"7534cd4cdcd033f86a62e32c531553ebb69ced9ad01ca81cadab5b6bb64972d2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4210e6f794219439970da8bf6dea945eed03556119610b12ea09142cbe9b07fb","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479249","source_sha256":"7534cd4cdcd033f86a62e32c531553ebb69ced9ad01ca81cadab5b6bb64972d2"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":"Overall","paragraphs":[{"citation":"944-80-45-1","para":"45-1","html":"
Separate account assets and liabilities shall be included in the financial statements of the insurance entity that owns the assets and is contractually obligated to pay the liabilities as summary totals in the financial statements of the insurance entity.
","snippet":"Separate account assets and liabilities shall be included in the financial statements of the insurance entity that owns the assets and is contractually obligated to pay the liabilities as summary totals in the financial …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5001c110cfcc58207b22e604cd5dd5ca2531052dc06121b371e2000400afa339","downloaded_from":"2026-09-10T02:18:30.731Z","last_downloaded_at":"2026-09-10T02:18:30.731Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480141","source_sha256":"76d186f113127c3630a6d00bad22e147b1dfcc8b7dffcc1f8163febf01dca656"}},{"citation":"944-80-45-2","para":"45-2","html":"
The portion of separate account assets representing contract holder funds shall be reported in the insurance entity's financial statements as a summary total, with an equivalent summary total reported for related liabilities, if the separate account arrangement meets all of the criteria in paragraph 944-80-25-2.
","snippet":"The portion of separate account assets representing contract holder funds shall be reported in the insurance entity's financial statements as a summary total, with an equivalent summary total reported for related liabili…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14e71edcc39b435646af7f9bc2265ac56822291c36540432a1bd9acd337b5841","downloaded_from":"2026-09-10T02:18:30.731Z","last_downloaded_at":"2026-09-10T02:18:30.731Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480141","source_sha256":"76d186f113127c3630a6d00bad22e147b1dfcc8b7dffcc1f8163febf01dca656"}},{"citation":"944-80-45-3","para":"45-3","html":"
For the portion of separate account arrangements meeting those criteria, the related investment performance (including interest, dividends, realized gains and losses, and changes in unrealized gains and losses) and the corresponding amounts credited to the contract holder shall be offset within the same statement of operations line item netting to zero.
","snippet":"For the portion of separate account arrangements meeting those criteria, the related investment performance (including interest, dividends, realized gains and losses, and changes in unrealized gains and losses) and the c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:367d76d95e633c80ecafff7b3f97b927dc65f8db51ff5f565d57a2593a92becb","downloaded_from":"2026-09-10T02:18:30.731Z","last_downloaded_at":"2026-09-10T02:18:30.731Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480141","source_sha256":"76d186f113127c3630a6d00bad22e147b1dfcc8b7dffcc1f8163febf01dca656"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:732e411761edb166e1e255aa14ce3d9b30a37224394245897f138c12efb7a66e","downloaded_from":"2026-09-10T02:18:30.731Z","last_downloaded_at":"2026-09-10T02:18:30.731Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480141","source_sha256":"76d186f113127c3630a6d00bad22e147b1dfcc8b7dffcc1f8163febf01dca656"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3229634d714dda67d2f57d9c3bb3b7129d4b8f754af59b320110079fdf0311b","downloaded_from":"2026-09-10T02:18:30.731Z","last_downloaded_at":"2026-09-10T02:18:30.731Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480141","source_sha256":"76d186f113127c3630a6d00bad22e147b1dfcc8b7dffcc1f8163febf01dca656"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-80-50-1","para":"50-1","html":"
The following information shall be disclosed in the financial statements of the insurance entity:
  1. a
    The general nature of the contracts reported in separate accounts, including the extent and terms of minimum guarantees (including market risk benefits)
  2. b
    The basis of presentation for both of the following:
    1. 1
      Separate account assets and liabilities
    2. 2
      Related separate account activity.
  3. c
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
  4. d
    Subparagraph superseded by Accounting Standards Update No. 2018-12.
  5. e
    The aggregate fair value of assets, by major investment asset category, supporting separate accounts as of each date for which a statement of financial position is presented
  6. f
    The amount of gains and losses recognized on assets transferred to separate accounts for the periods presented.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1The following information shall be disclosed in the interim and annual financial statements of the insurance entity:
  1. a
    The general nature of the contracts reported in separate accounts, including the extent and terms of minimum guarantees (including market risk benefits)
  2. b
    The basis of presentation for both of the following:
    1. 1
      Separate account assets and liabilities
    2. 2
      Related separate account activity.
  3. c
  4. d
  5. e
    The aggregate fair value of assets, by major investment asset category, supporting separate accounts as of each date for which a statement of financial position is presented
  6. f
    The amount of gains and losses recognized on assets transferred to separate accounts for the periods presented.
","snippet":"The following information shall be disclosed in the financial statements of the insurance entity:\n(a) The general nature of the contracts reported in separate accounts, including the extent and terms of minimum guarantee…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de21b1d2e6fb1c7b2ba05f72fd9a885ec61b7ccda3582b7ddc8b3601f3224a67","downloaded_from":"2026-09-10T02:18:33.389Z","last_downloaded_at":"2026-09-10T02:18:33.389Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480109","source_sha256":"72cb9d77ef7ab487bf67d2e1b220ce4e57c7c792c4d249ad8443b1db7f1ba68f"}},{"citation":"944-80-50-2","para":"50-2","html":"
For annual and interim reporting periods, an insurance entity shall disclose the following information about separate account liabilities described in paragraph 944-80-25-2:
  1. a
    A year-to-date disaggregated tabular rollforward of the beginning balance to the ending balance disaggregated in accordance with paragraph 944-40-50-5A
  2. b
    For each separate account liability rollforward presented, the related cash surrender values
  3. c
    A reconciliation of the separate account liability rollforwards to the aggregated ending carrying amount of the liability in the statement of financial position.
","snippet":"For annual and interim reporting periods, an insurance entity shall disclose the following information about separate account liabilities described in paragraph 944-80-25-2:\n(a) A year-to-date disaggregated tabular rollf…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1091e5d7bd4a08f205ea78909c8d38779d7b2bbd3bc9aba7d82706a0e623f06f","downloaded_from":"2026-09-10T02:18:33.389Z","last_downloaded_at":"2026-09-10T02:18:33.389Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480109","source_sha256":"72cb9d77ef7ab487bf67d2e1b220ce4e57c7c792c4d249ad8443b1db7f1ba68f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:809b2514f03fb50b8159adce60cf40902e6b374cc5379e7199ee73da78133492","downloaded_from":"2026-09-10T02:18:33.389Z","last_downloaded_at":"2026-09-10T02:18:33.389Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480109","source_sha256":"72cb9d77ef7ab487bf67d2e1b220ce4e57c7c792c4d249ad8443b1db7f1ba68f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68e1c3dec5e6fa8406697b1c2aab5de4f34b2602912c629bea6277a3af3a8824","downloaded_from":"2026-09-10T02:18:33.389Z","last_downloaded_at":"2026-09-10T02:18:33.389Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480109","source_sha256":"72cb9d77ef7ab487bf67d2e1b220ce4e57c7c792c4d249ad8443b1db7f1ba68f"}},{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"944-80-55-1","para":"55-1","html":"
This Example illustrates the application of the guidance in Sections 944-80-35 and 944-80-40 on accounting for transfers from a general account to a separate account.The general account transfers to the separate account arrangement, as seed money, a debt security with a book value of $60 and a fair value of $100. No gain is recognized on the initial transfer to the separate account arrangement.
","snippet":"This Example illustrates the application of the guidance in Sections 944-80-35 and 944-80-40 on accounting for transfers from a general account to a separate account.The general account transfers to the separate account …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5475d5804c7a7227174fa5af3a6959f1187fbbe5dd89de1fd06e949c1d8cfa62","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-2","para":"55-2","html":"
Contract holders subsequently direct $100 to the separate account arrangement, reducing the general account's proportionate interest to 50 percent. Assuming the fair value of the debt security is still $100, the general account recognizes a gain of $20, as a result of the contract holder investment into the separate account arrangement.
","snippet":"Contract holders subsequently direct $100 to the separate account arrangement, reducing the general account's proportionate interest to 50 percent. Assuming the fair value of the debt security is still $100, the general …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1c1676043230f803270f3d1f1dfc951c1385e2dce542187aa5e289724ee29bb","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-3","para":"55-3","html":"
In subsequent years, if the insurance entity reduces its interest in the separate account arrangement through withdrawal of cash or additional investment by contract holders, additional gains would be recognized if the fair value of the security continues to exceed the general account's basis in the security.
","snippet":"In subsequent years, if the insurance entity reduces its interest in the separate account arrangement through withdrawal of cash or additional investment by contract holders, additional gains would be recognized if the f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:407ebf907ef1c2dbda5861672db445845413649e857d0c4df5a26244610780a1","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-4","para":"55-4","html":"
This Example illustrates the guidance in this Subtopic on the presentation in the financial statements of an insurance entity's proportionate interest in separate accounts.
","snippet":"This Example illustrates the guidance in this Subtopic on the presentation in the financial statements of an insurance entity's proportionate interest in separate accounts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dfd4df808039e4b658fd035aba06d6d417b048f38dfb0b06864594921dadf799","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-5","para":"55-5","html":"
An insurance entity has a separate account that consists of two subaccounts, Subaccount ABC and Subaccount XYZ. The insurance entity has a 10 percent interest in Subaccount XYZ, determined based on the fair value of Subaccount XYZ's investments.
","snippet":"An insurance entity has a separate account that consists of two subaccounts, Subaccount ABC and Subaccount XYZ. The insurance entity has a 10 percent interest in Subaccount XYZ, determined based on the fair value of Suba…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ca0d12cd3fe5c761cc0cd30ca22d6f89d29588d0ad22f1ee28cd7d19ba048fd0","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-6","para":"55-6","html":"
Subaccount XYZ has debt securities, mutual fund investments, mortgage loans, and real estate. Subaccount XYZ carries its investments at fair value; if the general account held these investments, they would be accounted for at amortized cost or fair value, depending on the applicable generally accepted accounting principles (GAAP).
","snippet":"Subaccount XYZ has debt securities, mutual fund investments, mortgage loans, and real estate. Subaccount XYZ carries its investments at fair value; if the general account held these investments, they would be accounted f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e42b55fe554a800e17fb91a3e790eec02fb25c0dc9a8ef75c0b0086cedeb3516","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-7","para":"55-7","html":"
Paragraph superseded by Accounting Standards Update No. 2010-15.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2010-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:69d08b3d36a9c4dd1502fa267e5e77e2fa82fdb722b9d138ad55a6aeacafa33d","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-8","para":"55-8","html":"
The assets of Subaccount XYZ follow.
","snippet":"The assets of Subaccount XYZ follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b14296ebdd8392fb60f3bb65c14e36d16429fd846f7dfec63794b0214f856b9","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-9","para":"55-9","html":"
Balances presented in the insurer's statement of financial condition follow.
","snippet":"Balances presented in the insurer's statement of financial condition follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c339a80abb47c8c86e43b47336ec9ef016c38944ac3eedde1181762a7565c270","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-10","para":"55-10","html":"
The applicable disclosures for the insurer's proportionate interest in these specific assets would be included within the applicable disclosures for the general account invested assets.
","snippet":"The applicable disclosures for the insurer's proportionate interest in these specific assets would be included within the applicable disclosures for the general account invested assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37e9e52b8bd45030a143ab0258130facf2a06d24b5a8c1ac68fc464e849fac06","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-11","para":"55-11","html":"
The XYZ separate account's balances for net investment income and gains and losses follow.
","snippet":"The XYZ separate account's balances for net investment income and gains and losses follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53850bcd138a9f8cbac9a2e7462b341bf2b5b6903e797852351a876df3e52b58","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-12","para":"55-12","html":"
Assume the following in the second year:
  1. a
    Insurer interest is lowered to 5 percent on the last day of the first quarter.
  2. b
    At the time of dilution:
    1. 1
      Separate account at fair value was $ 1,090.
    2. 2
      Separate account at general account value was $ 1,007.
  3. c
    Fair value of each investment increases 1 percent.
","snippet":"Assume the following in the second year:\n(a) Insurer interest is lowered to 5 percent on the last day of the first quarter.\n(b) At the time of dilution:\n(1) Separate account at fair value was $ 1,090.\n(2) Separate accoun…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc5f815978f637a10c01cfd074d4b1a1f87cf8a3618db4b5ea6050b84a4b331d","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-13","para":"55-13","html":"
Assets of Subaccount XYZ at the end of first quarter follow.
","snippet":"Assets of Subaccount XYZ at the end of first quarter follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f4f2851769351deba93396dee2de24d2763b4414de0e29d6e7539808c609bb2","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-14","para":"55-14","html":"
Balances presented in the insurer's statement of financial condition follow.
","snippet":"Balances presented in the insurer's statement of financial condition follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:250adaa29835d44ac987751c21f611f6cad601db33e3e6c3b9bb32b4cce8dd10","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-15","para":"55-15","html":"
The Subaccount XYZ separate account's balances for net investment income and gains and losses for the quarter follow.
","snippet":"The Subaccount XYZ separate account's balances for net investment income and gains and losses for the quarter follow.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02ad04033278b2df842410d2df8d426f6438d620810d0350a4b043af414262e6","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-16","para":"55-16","html":"
The accounting for the seed money change for the quarter follows.
","snippet":"The accounting for the seed money change for the quarter follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1aa31705b3e4044c3672c8ddd5929dccb450042b164a27fd4056284376bd8ac0","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-17","para":"55-17","html":"
The aggregate fair value of assets, by major investment asset category, supporting separate accounts follows.
","snippet":"The aggregate fair value of assets, by major investment asset category, supporting separate accounts follows.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78b5685a427968dc46438f12a9b15e1eac828240a7a48ad2a3e09dc98ecb15a6","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-18","para":"55-18","html":"
This Example illustrates the separate account liability information that an insurance entity should disclose to meet the requirements in paragraph 944-80-50-2.
","snippet":"This Example illustrates the separate account liability information that an insurance entity should disclose to meet the requirements in paragraph 944-80-50-2.\nNote X: Separate Account Liability\nThe balances of and chang…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a1731effdec367bffc717a88a298ade2644f93cbdec59b419c6e27d3f94cbde","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-19","para":"55-19","html":"
This Example illustrates a deferred variable annuity that provides the contract holder with a number of investment alternatives. The contract holder deposits $100,000 in a deferred variable annuity that has no front-end load. The contract holder directs the allocation of the deposit to the following: aggressive growth equity fund, $25,000; high-yield corporate bond fund, $25,000; 5-year guaranteed interest separate account, $25,000; and general account, $25,000.
","snippet":"This Example illustrates a deferred variable annuity that provides the contract holder with a number of investment alternatives. The contract holder deposits $100,000 in a deferred variable annuity that has no front-end …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0cc4031f01ef2cba236a824b7b2f082740b9043f4c4bae89a849ac0a1b37c46f","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-20","para":"55-20","html":"
Assets representing the contract holder's funds in the aggressive growth equity fund and high-yield corporate bond fund separate accounts satisfy all the criteria of paragraphs
944-80-25-2 through 25-3
, 944-80-30-1, 944-80-35-2, and
944-80-45-2 through 45-3
. The allocation to the guaranteed interest separate account does not satisfy the criterion in paragraph 944-80-25-2 for separate account treatment. Therefore, assets representing the contract holder's funds in the guaranteed interest separate account will be presented in the insurance entity's financial statements integrated with general account assets and liabilities. This reporting is appropriate even in those instances where the separate account arrangements with those contracts have been approved by regulatory authorities as separate account contracts.
","snippet":"Assets representing the contract holder's funds in the aggressive growth equity fund and high-yield corporate bond fund separate accounts satisfy all the criteria of paragraphs 944-80-25-2 through 25-3, 944-80-30-1, 944-…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:028ec926f7f76e879c3bb1b4de40cfa6edb84daf8e214e724ede77d7449c7129","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"citation":"944-80-55-21","para":"55-21","html":"
The guaranteed interest separate account allocations are often referred to as spread products, where the insurer bears the investment risk and its profits are derived primarily from the excess of investment performance over net amounts credited to the contract holder. Amounts related to this contract that are directed to the general account option will be shown within general account balances.
","snippet":"The guaranteed interest separate account allocations are often referred to as spread products, where the insurer bears the investment risk and its profits are derived primarily from the excess of investment performance o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5cf0bebc80d39568d1a5a760df83bf7797e46fca8b47e350b29fb81d9532b0de","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d5f8ab286bd5ca6ba69e2cf57476d18012ccfab069033590a790c9ffcd16241","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:825e48a1cf1b69521d0f7ff543d5b66702b833c944022bc7db2533da47760ec0","downloaded_from":"2026-09-10T02:18:36.210Z","last_downloaded_at":"2026-09-10T02:18:36.210Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480078","source_sha256":"ca467c37a3af6c8a764ba2a7a719af92710bbca55f9ab923b00fc149d6749b2a"}},{"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":"944-80-65-1","para":"65-1","html":"
Paragraph superseded on 06/18/2012 after the end of the transition period stated in Accounting Standards Update No. 2010-15, Financial Services—Insurance (Topic 944): How Investments Held through Separate Accounts Affect an Insurer's Consolidation Analysis of Those Investments.
","snippet":"Paragraph superseded on 06/18/2012 after the end of the transition period stated in Accounting Standards Update No. 2010-15, Financial Services—Insurance (Topic 944): How Investments Held through Separate Accounts Affect…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:454fedf97f4e85eae0d901945e792435c95eafb67ee640f179d93d1853eb641b","downloaded_from":"2026-09-10T02:18:39.188Z","last_downloaded_at":"2026-09-10T02:18:39.188Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480054","source_sha256":"b3c7ba499524a6b525227990ddece38bf18532ebdf6cae463085e4e09c7fc4d6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f945308c379006df51e2a1f3c2a57fe4a9345821e57dacc87620d4dbeb47df1","downloaded_from":"2026-09-10T02:18:39.188Z","last_downloaded_at":"2026-09-10T02:18:39.188Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480054","source_sha256":"b3c7ba499524a6b525227990ddece38bf18532ebdf6cae463085e4e09c7fc4d6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09e0393f78922a83341fa3f0341d93c9851827b83671f165eeb8ce0b83c4c259","downloaded_from":"2026-09-10T02:18:39.188Z","last_downloaded_at":"2026-09-10T02:18:39.188Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480054","source_sha256":"b3c7ba499524a6b525227990ddece38bf18532ebdf6cae463085e4e09c7fc4d6"}}],"enrichment":{"summary":"ASC 944-80 governs how an insurance entity accounts for and presents separate accounts — pools of assets and liabilities maintained to fund variable annuity, variable life, pension and similar contracts where the contract holder generally bears the investment risk. If a separate account arrangement meets the four criteria in 944-80-25-2 (legal recognition, legal insulation from general account liabilities, contract-holder-directed investment, and full pass-through of investment performance), the contract holder portion is measured at fair value and reported as a single summary total asset with an equivalent summary total liability, with investment performance and amounts credited offset to zero. If any criterion fails (e.g., guaranteed interest or market value adjusted \"spread\" products), the assets and liabilities are accounted for and presented as ordinary general account items.","key_points":["Separate account assets and liabilities are included in the financial statements of the insurance entity that owns the assets and is contractually obligated to pay the liabilities (944-80-25-1; 944-80-45-1).","Separate account accounting applies only if all four conditions in 944-80-25-2 are met: legal recognition, legal insulation from general account liabilities, contract-holder-directed investment, and pass-through of all investment performance net of fees (a minimum guarantee is permitted, but a ceiling is not).","When the criteria are met, the contract holder portion is measured initially and subsequently at fair value (944-80-30-1; 944-80-35-2), presented as summary totals (944-80-45-2), and related investment performance and amounts credited to contract holders are offset within the same statement of operations line netting to zero (944-80-45-3); minimum guarantee and insurance benefit liabilities in excess of separate account fair value are general account liabilities (944-80-25-3(b)).","If the criteria are not met — as with fixed account options, market value adjusted contracts, guaranteed investment contracts, and indexed contracts — the assets, liabilities, revenues, and expenses are measured and presented as general account items (944-80-25-4 through 25-5; 944-80-55-20).","The insurer's own proportionate interest (seed money) does not qualify for separate account accounting; the insurer looks through and accounts for those underlying assets as if held directly by the general account (944-80-25-6 through 25-7), unless its interest is under 20 percent and all underlying investments are securities or cash equivalents, in which case it may report an equity security investment under Subtopic 321-10 (944-80-25-11).","For consolidation, a qualifying separate account is treated as a subsidiary for retention of specialized investment accounting (810-10-25-15); separate account interests held for policy holders are not treated as the insurer's interests and are not combined with general account interests, except for related-party policy holders under the VIE Subsections (944-80-25-3(d) through (f)).","Assets transferred from the general account to a qualifying separate account are recognized at fair value to the extent of third-party contract holders' proportionate interests, with the related gain recognized immediately in general account earnings only if risks and rewards have transferred (944-80-40-1; a guarantee or repurchase commitment precludes gain under 944-80-35-5); disclosures include contract nature and minimum guarantees, basis of presentation, aggregate fair value by major asset category, transfer gains and losses (944-80-50-1), and a disaggregated liability rollforward with cash surrender values and reconciliation (944-80-50-2)."],"categories":["Industry-specific","Presentation","Fair value","Consolidation"],"audience_level":"advanced","student_note":"The exam trap is assuming that anything a regulator labels a \"separate account\" gets separate account presentation — it does not; guaranteed interest, market value adjusted, and indexed options fail the full pass-through test in 944-80-25-2(d) and are reported as general account assets and liabilities. Also remember the insurer's own seed money never gets separate account treatment; it is looked through and accounted for as if held directly in the general account.","related_topics":["944-40","944-605","810-10","320-10","321-10","360-10"],"key_concepts":["separate account","contract holder funds","pass-through of investment performance","legal insulation","seed money proportionate interest","summary total presentation","minimum guarantees and market risk benefits","variable annuity contracts"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:821c291b0ec14a726b14772d6ae5ff08793981ca4db9b1a29fe4150c68c35cf1","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:42.131Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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Plans","topic_title":"Investments—Other","score":0.7619,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a9ed2b37f44248c27a1e949c25380323db173a1d10ad1e8f565f18f8963983c9","downloaded_from":"2026-09-09T23:48:36.902Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"805-944","title":"Financial Services—Insurance","topic_title":"Business Combinations","score":0.76,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a56e67636d0953eb41e9a83a8216d743ff307c5dfb9edbacab03291965faab1b","downloaded_from":"2026-09-10T01:26:39.788Z","last_downloaded_at":"2026-09-10T01:27:09.747Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-20","title":"Insurance Activities","topic_title":"Financial Services—Insurance","score":0.7402,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e4e7efed0b5c0f0018d5493337fbfee7245a73ab901a01f461026ab527b8a346","downloaded_from":"2026-09-10T02:14:58.695Z","last_downloaded_at":"2026-09-10T02:15:47.018Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"944-40","title":"Claim Costs and Liabilities for Future Policy Benefits","topic_title":"Financial 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Companies","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a9e2d1502f63ecb8852e21f9a2de6ed05f9efa5d47d0e5081cd53037db1db30","downloaded_from":"2026-09-10T02:18:44.566Z","last_downloaded_at":"2026-09-10T02:19:25.136Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c5db535133f0e612c0d8a1da04c320fa4ad6d15fa2dddf0f5481f8a134a31d1","downloaded_from":"2026-09-10T02:18:08.530Z","last_downloaded_at":"2026-09-10T02:18:42.131Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"paragraphs":821,"summary":"ASC 944 (Financial Services—Insurance) supplies incremental, industry-specific GAAP for insurance entities, organized around the nature of the contract rather than the type of entity: 944-10 sets the scope and roadmap, and 944-20 classifies contracts as short-duration or long-duration (with universal life-type, participating, reinsurance risk-transfer, and financial guarantee sub-models). The measurement subtopics then follow the contract life cycle: 944-30 capitalizes and amortizes acquisition costs (only costs \"related directly to the successful acquisition,\" 944-30-25-1A; constant-level amortization for long-duration contracts, 944-30-35-3A), 944-40 accrues unpaid claim liabilities when insured events occur and liabilities for future policy benefits when premium revenue is recognized (with post-ASU 2018-12 annual assumption updates through net income, an upper-medium-grade discount rate through OCI, and fair value market risk benefits), 944-50 accrues policyholder dividends, 944-60 requires premium deficiency/loss recognition when expected costs exceed unearned premiums or existing liabilities plus future gross premiums, and 944-80 governs separate accounts. The unifying idea is that contract classification at inception drives every later recognition, measurement, amortization, and loss-recognition decision, and contracts lacking significant insurance risk fall out of insurance accounting entirely (deposit or investment contract accounting).","concepts":["short-duration and long-duration insurance contracts","deferred acquisition costs (dac)","liability for future policy benefits","unpaid claims and claim adjustment expenses (ibnr)","premium deficiency and loss recognition","risk transfer in reinsurance contracts","market risk benefits and universal life-type contracts","separate accounts and policyholder dividends"],"categories":["Industry-specific","Subsequent measurement","Recognition","Presentation"],"level":"advanced","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:12cff300a8a00fb1e911f827c0aa1ceb2c4412b6774d57aed190a9a37507fadf","downloaded_from":"2026-09-10T02:14:24.052Z","last_downloaded_at":"2026-09-10T02:18:42.131Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}