Accounting Standard Updates
12 Days of SSAP: Life Insurers Deferred Policy Acquisition Costs
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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.
Tax Cuts and Jobs Act – Life Insurers Deferred Policy Acquisition Costs
The Tax Cuts and Jobs Act (TCJA) was signed into law in 2017. The law changes the way in which life companies calculate deferred acquisition costs (DAC). Prior to the TCJA, DAC would be capitalized and amortized over a 10-year period. The TCJA extends the period to 15 years and increases the percentage of premiums required to be deferred. The impact does not affect amounts capitalized as of December 31, 2017. The higher rates and amortization periods only impact business acquired after December 31, 2017.