This post discusses accounting for FAS 97 Limited Pay life insurance products. I previously covered FAS 60 policies on this blog. FAS 97 was created to address certain long duration products that were not covered under FAS 60.
As stated in the FAS 60 discussion, life insurance accounting is different. It contains topics that are unique to the insurance industry. These topics are rarely taught in accounting classes and are not covered on the CPA exam.
My goal here is to summarize some of these topics and to make them relatively easy to understand for anyone with an accounting background. Continue reading “Life Insurance Accounting – FAS 97 Limited Pay”