What is The Definition of Statutory Accounting?
Legal accounting is an accounting practice used by insurance companies in the United States. This is different from other companies' accounting systems. In fact, insurance companies usually pay a large portion of their profits to policyholders.
The definition of Statutory Accounting is: Specific accounting procedures for state insurers under state law that require a higher level of detail than the GAAP requirement and provide better protection to the public against possible bankruptcy of these key institutions.
Standard methods and accounting principles used by national regulators to measure the financial condition of regulated companies and other insurance companies. This method is generally more conservative than the accepted accounting principles in most companies. Compliance with solvency and other standards is determined by financial documents prepared in accordance with legal accounting principles.
Literal Meanings of Statutory Accounting
Meanings of Statutory:
Required, authorized or authorized by law.
Sentences of Statutory
The court provided legal compensation to each claimant
Synonyms of Statutory
admissible, acceptable, permissible, allowable, legitimate
Meanings of Accounting:
The process or process of maintaining financial accounts.
Sentences of Accounting
Investigation of false accounting claims
Synonyms of Accounting
financial affairs, accounting, money management, fiscal matters, business, pecuniary matters, investment, banking, commerce, economics, money matters