Difference between revisions of "FASB.944"
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| + | This paper provides guidance from FASB regarding <u>Financial Guarantee</u> insurance contracts. | ||
| + | |||
[https://www.battleacts6us.ca/vanillaforum6us/categories/fasb-944<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | [https://www.battleacts6us.ca/vanillaforum6us/categories/fasb-944<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | ||
==Study Tips== | ==Study Tips== | ||
| + | |||
| + | Virtually all of the content in this reading is covered in other reinsurance readings. The only thing you might want to learn is the definition of ''financial guarantee' insurance. | ||
==BattleTable== | ==BattleTable== | ||
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==In Plain English!== | ==In Plain English!== | ||
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| + | A <u>financial guarantee</u> is a non-cancellable indemnity bond backed by an insurer to guarantee investors that principal and interest payments will be made. Or in simpler terms: | ||
| + | |||
| + | * it covers a lender from the liability resulting from the borrower defaulting on a loan | ||
| + | |||
| + | The reading draws a distinction between short and long-duration contracts. A <u>short-duration</u> contracts is characterized by: | ||
| + | |||
| + | * providing insurance protection for a <u>fixed period</u> of <u>short</u> duration ''(pretty darn obvious!)'' | ||
| + | * enabling insurer to <u>cancel</u> the contract or <u>adjust</u> the provision at the end of the contract period | ||
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| + | Financial reporting of a reinsurance contract depends on whether: | ||
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| + | * the contract is short or long-duration | ||
| + | * it is prospective or retrospective | ||
[https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=FASB&suffix=944§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> | [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=FASB&suffix=944§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> | ||
Revision as of 20:27, 12 March 2019
This paper provides guidance from FASB regarding Financial Guarantee insurance contracts.
Study Tips
Virtually all of the content in this reading is covered in other reinsurance readings. The only thing you might want to learn is the definition of financial guarantee' insurance.
BattleTable
- this reading has not been tested on any exam from the year 2012 and subsequent
reference part (a) part (b) part (c) part (d) no prior questions
Full BattleQuiz You must be logged in or this will not work.
In Plain English!
A financial guarantee is a non-cancellable indemnity bond backed by an insurer to guarantee investors that principal and interest payments will be made. Or in simpler terms:
- it covers a lender from the liability resulting from the borrower defaulting on a loan
The reading draws a distinction between short and long-duration contracts. A short-duration contracts is characterized by:
- providing insurance protection for a fixed period of short duration (pretty darn obvious!)
- enabling insurer to cancel the contract or adjust the provision at the end of the contract period
Financial reporting of a reinsurance contract depends on whether:
- the contract is short or long-duration
- it is prospective or retrospective
Full BattleQuiz You must be logged in or this will not work.
