Introduction to Insurance Accounting & Finance Self-Study

The course explores the basic principles of all types of insurance - Life, Property and Casualty, Health, Fraternal, and Title - with emphasis on statutory reporting requirements.

Upon completion of this course, you will be able to:

• Recognize the purpose and concept of insurance
• Apply the fundamental concepts of the insurance industry
• Define how insurance is regulated
• Apply Statutory and U.S. GAAP financial reporting for insurance companies
• Identify key concepts of reinsurance
• Apply the Risk-Based Capital (RBC) Concept

CPE Credits: 2 hours in Accounting

Prerequisites/Advance Preparation: None required for this basic level self-study.

NASBA Publication/Revision Date: May 2020

Course Content:

• Definition of insurance
• History of insurance
• Industry fundamentals - Products and risks
  • Distribution systems
  • Types of insurance
  • Investments
• Ownership and Capital Structures
• Regulation of Insurance History
• State Regulation of Industry
• Regulation of Insurance Key Department of Insurance Functions
• Regulation of Insurance Objectives of National Association of Insurance Commissioners (NAIC)
• Statutory and GAAP Philosophies
• Sources of Statutory Guidance
• GAAP Reporting
• Statutory Insurance Accounting and Products
• GAAP Product Accounting Summary
• Income Recognition
• Comparison of P&C and Life Premium Accounting
• Expense Recognition
• Reserve Concepts
• Invested Asset Valuation
• Separate Accounts
• Nonadmitted Assets
• Risk-Based Capital (RBC)
• The RBC Ratio