FAS97: Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments
Issued: Dec 1987 Superseded by: ASC Summary Scope: For universal life-type contracts that were not addressed by FASB Statement No. 60, Accounting and Reporting by Insurance Enterprises. For limited-payment long-duration insurance contracts and investment contracts and amends Statement 60 to change the reporting of realized gains and losses on investments. Applicability: {US-FAS97-6} Investment contracts, Long-duration contracts that do not subject the insurance enterprise to risks arising from policyholder mortality or morbidity. {US-FAS97-7} Limited-payment contracts, Long-duration insurance contracts with terms that are fixed and guaranteed, and for which premiums are paid over a period shorter than the period over which benefits are provided. {US-FAS97-9} Universal life-type contracts long-duration insurance contracts with terms that are not fixed and guaranteed. {US-FAS97-10}Universal life-type contracts include contracts that provide either death or annuity benefits and are characterized by any one of the following features: One or more of the amounts assessed by the insurer against the policyholder that are not fixed and guaranteed by the terms of the contract. mortality coverage contract administration initiation surrender Amounts that accrue to the benefit of the policyholder that are not fixed and guaranteed by the terms of the contract. interest accrued to policyholder balances Varied premiums. Participating contracts …