Description: In determining a company's general purpose financial statement earnings in conformity with the Audit Guide for Stock Life Insurance Companies the Audit Guide, it is necessary to consider what basis may be deemed appropriate for establishing claim reserves on health insurance policies. The bases for determining the other values taken into a general purpose financial statement have been considered elsewhere. This articel briefly considers the difference in reserves calculated for statutory reporting verses those same reserves calcualted for other purposes such as GAAP.

Description: Article from The Actuary, June 1972 – volume 6 - Issue 6 that sets forth the writer’s opinion of that which constitutes a proper insurance reserve for a general purpose financial statement.

Description: A discussion of some criticisms of the feasibility of companies converting to GAAP, in addition to pros and cons of the GAAP system.

Description: The only indices set out in the Annual Statement are 1 the ratio of net investment income to mean assets in Exhibit 2, and 2 those ratios in Schedule H and the Accident and Health Policy Experience Exhibit the Exhibit. The impropriety of the Schedule H and Exhibit ratios as meaningful indicators is discussed below. It is assumed in the discussion that statutory accounting principles and considerations are operative, and the superiority of indices based on generally accepted accounting or economic value principles is not advanced. The statutory indices adjusted and unadjusted are used and referred to by regulators, industry groups, trade journals, and others. Thus, within the context of statutory accounting, the indices should be properly determined.