Description: This article describes a simple but powerful tool for use by valuation actuaries and auditors when evaluating current assumptions for use in GAAP net premium reserve methods that require retrospective updating for actual experience and assumption changes. As a supplement, this tool can fill some holes left by existing tools. It produces results that can be compared to materiality thresholds at any level of aggregation, from a single reserve cohort up to the combination of all cohorts for all products subject to retrospective net premium reserve requirements. It can also serve as a benchmarking tool for estimated the possible effects of an assumption change or to help in explaining the effects of an actual assumption change.

Description: The purpose of this article is to explore the causes and effects of FAS 97 DPAC amortization revisions and to encourage the preparation of analysis that will assist in the interpretation and communication of results for management users of GAAP product line financial reports involving such revisions. From Society of Actuaries Financial Reporting Section Monograph, M-AS99-1.

Description: This article demonstrates that the alternative method of adjusting DAC amortization for actual experience fails to serve its purpose if amortization is based on amounts in force at the end of a reporting period. In that situation, the method would increase the amortization rate for excess terminations. Applying that increased rate to a lower basis, however, does not reliably reduce the unamortized DAC balance as required.

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: US GAAP for Life Insurers chapter 13 spreadsheets showing the development of the GAAP accounting entries for various classes of investments: bonds, CMOs, and mortgage loans. Please see the book US GAAP for Life Insurers for further information on US GAAP accounting.

Description: US GAAP for Life Insurers chapter 15 spreadsheet showing the GAAP development of VOBA and Goodwill after a merger or acquisition. Please see the book US GAAP for Life Insurers for further details on US GAAP accounting.

Description: Excel spreadsheet example of GAAP calculations for a Universal life plan showing reserves and DAC under FAS97 . Also shown is an unlocking example from this session of the 2010 U.S GAAP & IFRS conference in New York.

Description: US GAAP for Life Insurers chapter 4 spreadsheet. This spreadsheet shows the development of GAAP Profit/Loss statements along with benefit reserves and DAC and assumptions for several life insurance products such as 10 year endowment and 20 year term. Please see the book US GAAP for Life Insurers for full detail on US GAAP accounting.

Description: US GAAP for Life Insurers chapter 5 spreadsheet. This spreadsheet shows various tables and figures illustrating the development of expected gross margins, dividends, and DAC amortization for a participating 10 year endowment policy. Please see the book US GAAP for Life Insurers for full details on US GAAP accounting.

Description: Excel spreadsheet showing immediate annuity example of GAAP benefit reserves and Unearned Revenue Liability calculation from the U.S. GAAP & IFRS: Today and Tomorrow conference in New York in September of 2010.