Accounting Standard Updates
12 Days of SSAP: Other Admitted Assets – Structured Settlements
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As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are focusing on the latest changes to SSAP and how they will impact your insurance company in 2019 and beyond.
Other Admitted Assets – Structured Settlements
Substantive revisions to SSAP No. 21—Other Admitted Assets, were made to explicitly include accounting guidance for an insurance reporting entity that acquires structured settlement payment rights as a result of a structured settlement factoring transaction. Structure settlement payment terms can be classified in two buckets – Period Certain or Life Contingent.
Revisions reflect that Period Certain structured settlement income streams are admitted assets if the rights to the future payments have been legally acquired in accordance with all state and federal requirements. Life Contingent structured settlement income streams shall be nonadmitted.
