Life Insurance Accounting – FAS 97 Limited Pay

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.

life insurance acccountingAs 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”

Life Insurance Accounting – FAS 60

Today I’m writing about accounting for FAS 60 Short Duration and FAS 60 Long Duration products.

FAS 60Please note that if you’re not familiar with insurance accounting, it’s unique. It’s not taught in college and not included on the CPA exam.

There is a lot to know regarding FAS 60 products. The Statement of Financial Accounting Standards No. 60 is 89 pages long.

I’m not going into that much detail here. Instead I hope to provide a relatively, easy to understand overview. Continue reading “Life Insurance Accounting – FAS 60”