Revenue Recognition for Extended Warranty Contracts

On February 1, 2017 the Insurance Entities Revenue Recognition Task Force (of which JLK Rosenberger is a member) issued “Working Draft: Accounting for Third Party Extended Warranty Contracts (Applicable to Non-Insurance Entities) – Revenue Recognition Implementation Issue #9-3 – Accounting for third-party extended service warranty contracts within the scope of FASB ASC 606.

Principle-based Reserving Comes to Roost for Life Insurance Companies

Effective January 1, 2017 the long-awaited Principle-Based Reserving rules, or PBR, became a reality. PBR had its birth in 2009 with the National Association of Insurance Commissioners (NAIC) adoption of the Standard Valuation Law (SVL), which subsequently developed the Valuation Manual.

Short Duration Contract Enhanced Disclosure Examples

ASU 2015-09 is about enhanced disclosure, and while it lays out certain requirements for presentation and provides examples of what the disclosure might look like, it also leaves a high degree of discretion to insurers to determine how and what information best meets with the spirit and intent of the standard. By now you know ASU 2015-09 requires disclosure of development data for short duration contracts.

Is Fronting a Win-Win for Insurers?

Fronting can be defined as an alternative way of entering markets and growing premium, a valid tool to be used for the benefit of both an insurer who needs the front and an insurer willing to be the front for the right compensation.

Insurance Tax and GAAP Update

JLK Rosenberger recently presented a tax update at the California Regional IASA conference on December 1, 2016. The slides discuss the potential tax changes under President Trump and a republican congress and how that might impact insurance companies.

The Fraud Continuum

Do you consider your internal controls to be well discerned and clearly documented? Is your “internal control documentation” an accumulation of accounting step procedures in contrast to clear-cut identification of controls that reside within those step procedures?

Texas Insurers Maintenance Taxes and Regulatory Fees

As you are likely aware, in addition to premium taxes, Texas insurers pay maintenance taxes and regulatory fees that are utilized to fund the TDI and its operations. These maintenance taxes and fees also provide funding for other state agencies including the Texas A&M Forest Service, Office of Public Insurance Counsel…