Unaffiliated Debt and Equity Securities

This course focuses on the classification (U.S. GAAP), valuation (U.S. GAAP/Statutory) and disclosures (Statutory) for unaffiliated debt and equity securities and is designed to cover all statement types – Fraternal, Health, Life, Property & Casualty, and Title.

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

• Differentiate between the valuation techniques utilized in the fair value approach
• Distinguish between the inputs to valuation techniques
• Differentiate between the GAAP debt and equity security classifications
• Identify the attributes of GAAP debt and equity security classifications
• Identify and apply the Statutory investment valuation rules administered by the Securities Valuation Office of the NAIC
• Associate the NAIC designation with the valuation of bonds and preferred stocks

CPE Credits: 1.5 hours in Accounting

Prerequisites/Advance Preparation: A general understanding of the basics of invested asset accounting and reporting is needed for this intermediate-level self-study. This may be gained by attending our Overview of Investment Accounting and Reporting for Life Insurance Companies seminar or our Overview of Statutory Financial Reporting P&C seminar.

NASBA Publication/Revision Date: May 2020

Course Content:

• Investment valuation concepts
  • Historical/Amortized Cost and Fair Value
  • Fair Value Measurement
  • U.S. GAAP Fair Value Option
• U.S. GAAP Classification and Valuation of Unaffiliated Debt and Equity Securities
• Statutory
  • NAIC Designation
  • Valuation
  • Disclosures