• AICPA - American Institute of Certified Public Accountants
  • FASB - Financial Accounting Standards Board
  • (IFRS) Foundation -
  • The CPA letter
  • Statement of Statutory Accounting Principles
    • Statement of Statutory Accounting Principles No. 51
      Life Contracts
    • [PDF-12p] - Statutory Issue Paper No. 56 - Universal Life-Type Contracts, Policyholder Dividends, and Coupons
      STATUS - Finalized March 16, 1998
      Original SSAP: SSAP No. 51; Current Authoritative Guidance: SSAP No. 51R

      • Flexible Premium Universal Life-Type Contracts
        • Alternative minimum reserves shall be required, if applicable, for flexible premium universal life-type contracts if the guaranteed maturity premium is less than the valuation net premium.

Other differences between statutory and generally accepted accounting principles have been recognized. Some of these

  • certain assets and investments recognized under GAAP are "non-admitted" under statutory accounting practices. 
    • Principal among these are certain loans and receivables, investments not authorized by statute or in excess of statutory limitations, and furniture and equipment.
  • income tax effects of differences between tax and book (statutory) accounting are not, in all cases, recognized under SAP.
    • With a few exceptions, accounting for income taxes generally is on an incurred basis.
  • the carrying value of subsidiaries is limited primarily due to restrictions in both the amount of and the amortization period for goodwill.
    • The deviations mandated or specified by the laws and regulations of the state department exercising jurisdiction result in a financial picture which presents the condition of the company or the results of its operations in conformity with the purposes and needs of the regulatory authority.
  • Financial statements prepared on the basis of generally accepted accounting principles meet the needs of a different contingency of users.  (p20-21)

1988-2, NAIC Proceedings

  • In May 1971 the Commission invited public comment on a proposal to amend certain registration and reporting forms and Regulation S-X to remove the exemption from certification of financial statements of banks filed under the Securities Act and the Securities Exchange Act and statements of life insurance companies filed under the Securities Exchange Act.54
  • After consideration of the comments received, the Commission, shortly after the end of the year, adopted amendments which removed the exemption from certification of financial statements of banks for fiscal periods ending after November 30, 1971.55
  • However, the Commission determined to retain at this time the exemption with respect to life insurance companies.
  • This will permit the accounting profession in collaboration with the life insurance industry to complete work now underway to develop and promulgate accounting guidelines for life insurance companies which will enable the financial statements of such companies to be certified in accordance with generally accepted accounting principles.  (p37)

1971 - SEC - 37th Annual Report - 250p