Life Statutory Reporting - Reserves, Claims, and Dividend Liability Recognition and Reporting

This course familiarizes the learner with Statutory reserves, claim, and dividend liability recognition and reporting in the Life and Accident and Health Annual Statement.

CPE Credits: 2.5 hours in Accounting

Level: Basic

Prerequisites/Advance Preparation: None

NASBA Publication/Revision Date: May 2020

Learning Objectives:

• Recognize why life insurance companies hold reserves, their financial statement significance and the difference between active life reserves and claim obligations
• Identify and differentiate between the three principal active life reserve methods
• Identify and differentiate between claim liabilities and claim reserves
• Recognize the concept of a policyholder dividend and the related financial statement implications
• Recognize statutory reserve, claim, and dividend liability reporting and disclosure requirements

Outline:

• Basic reserve concepts
• Short-duration contracts - premium driven reserves
• Long-duration contracts - benefit driven reserves, account balance reserves, and deposit type contracts
• Claim obligations
• Reserve financial reporting and disclosure
• Participating policyholder dividend concept and financial reporting and disclosure
• Summary