Life Financial Reporting - Life Reinsurance

This course is a comprehensive discussion of the concept of reinsurance and how reinsurance is used in the life insurance industry, as well as accounting and reporting for life reinsurance on a GAAP and Statutory basis.

CPE Credits: 2 hours in Accounting

Level: Basic

Prerequisites/Advance Preparation: None

NASBA Publication/Revision Date: May 2020

Learning Objectives

• Identify the fundamental concepts of life reinsurance
• Distinguish between the different methods of structuring reinsurance agreements
• Apply accounting and reporting requirements for reinsurance
• Interpret the regulatory environment for reinsurance

Outline

• Basic concepts of reinsurance
  • What is reinsurance
  • Reinsurance terminology
• Uses of reinsurance in the life insurance industry
• Types and forms of reinsurance used in the life insurance industry
  • Indemnity reinsurance
  • Proportional and non-proportional
  • Risks that can be reinsured
  • Coinsurance
  • Modified coinsurance
  • Yearly renewable term
• Reinsurance reporting for life insurance companies
  • Reinsurance in the financial statements
  • GAAP for reinsurance assumed and ceded
• Accounting for reinsurance transactions
  • Coinsurance
  • Modified coinsurance
  • Yearly renewable term
  • Recapture
  • Transfer of risk issues
• Regulation of life reinsurance
  • SSAP 61, Appendix 785 and 791
  • Unauthorized reinsurance
  • Schedule S