Fall 2018 10 c) i)
Since in the calculation of net admitted assets for surplus on balance sheet, we only recognize agents balances <90 days past due as an admitted asset, would we never recognize agents balance >90 days past due as an admitted asset even if we did end up collecting that amount before financial statements are issued? Why is this?
Comments
You should review the SSAP 9 - Subsequent Events topic in relation to this.
I see that the examiner considered this a Type I event, which is recognized in the financial statement before it is issued, unless it is immaterial. The clincher was that the amount was 100K compared to 9.5M of surplus, so they considered it immaterial and not to be recognized.
To your question, it will have been collected and therefore included in the next year's admitted assets. So, it is not that it's never recognized.