Description: Presented at May 2002 Spring Meeting. This session covers the AICPA's proposed statement of position on accounting and reporting by insurance enterprises for certain nontraditional, long-duration contracts and for separate accounts. It requires new GAAP reserves for certain variable annuities with guaranteed minimum death benefits 'GMDBs'.

Description: This paper discusses three methods for the amortization of deferred acquisition expenses, DAC and the results when actual experience differs significantly from that assumed. The methods include a static approach with prescheduled amortization, a dynamic technique called the expense reserve factor method, and an aggregate or accumulated premium revenue method. A discussion follows the paper. From Transactions of Society of Actuaries 1978, Vol. 30.

Description: This paper argues by means of a mathematical demonstration that: 1. Natural reserves are not appropriate for adjusting earnings of mutual life insurance companies under GAAP. 2. Adjusted earnings developed by using statutory net level premium reserves together with a nonadmitted asset equal to the present value of unamortized variable acquisition expenses, and, if material, possibly with the reserves for terminal dividends, should bc accepted under GAAP, provided that dividend scales are suitably designed. 3. Other approaches which are essentially equivalent to that in bullet #2, such as those involving historical asset share funds, should likewise be acceptable.

Description: Presented at May 1996 Spring Meeting. Presents an overview of conference co-sponsored by the SOA on fair value of insurance liabilities, including a comparison of some of the methods presented. A status update of recent industry and professional activities and what the future may hold for the use of fair value of insurance liabilities in insurance company financial statements is also provided.

Description: 2003 Valuation Actuary Symposium, San Diego, CA. This session covered the practical aspects of implementing the Statement of Position on accounting and reporting by insurance enterprises for certain nontraditional long-duration contracts and for separate accounts. Specific items include SA reporting, multiple account value products, guaranteed minimum death and living benefit reserves and sales inducements

Description: Update on accounting and capital/RBC issues subsequent to tax reform.

Description: Applying GAAP to GMDBs in Variable Annuities. by Karen Sasveld and David Heavilin from The Financial Reporter, September 2001, Issue No. 47.

Description: In September 2005, the AICPA issued SOP 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts. The SOP provides accounting guidance for DAC on internal replacements of insurance and investment contracts other than those specifically mentioned in FAS 97. Article discusses implementation issues.

Description: Introduction to the purposes and roles of “Lifric”, an acronym for the American Academy of Actuaries working group, Life Financial Reporting Committee

Description: Discussion of AICPA Statement of Position 05-1: Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts.