RMI-4292 Lecture 11: Property Notes 11

• School: FSU
• Department: Risk Management/Insurance, Real Estate and Legal Studies
• Course: RMI-4292
• Professor: William K Jones

Document Summary

Basics: two accounting systems, gaap, generally accepted accounting principles, standard accounting, ongoing value, sap, statutory accounting principles, accounting for regulator, liquidated value. Sap understatements: non-admitted assets, not included, furniture supplies automobiles, uncollected premium (over 90 days, acquisition costs, at inception. Sap valuations: valuation of surplus, accounting method least likely to, overstate assets, understate liabilities, valuation of net income (earnings, accounting method least likely to, overstate revenues, understate expenses. Balance sheet: sap, assets liabilities = policyholder surplus, gaap, assets liabilities = owner"s equity. Invested assets (yield a return: cash and equivalents, stocks/bonds, mortgages/real estate, not money carrier has borrowed, but has loaned, nonearning assets (don"t yield a return, agent"s balances/uncollected premiums, funds with/owned by reinsurers, federal taxes recoverable. Asset valuation: cash and equivalents, face value, stocks, current market price, bonds, amortized cost (price paid adjusted to current value, mortgages, amount of unpaid loan balance, real estate, cost less depreciation.