1. Accounting policy:
- Recognition of premium revenues and prosecution of a future policy benefit liabilities and unearned premiums.
- Reinsurance transactions, including the nature, purpose, and effect of the reinsurance transaction the company's operations.
- Recognition of expense claims and claims expense estimation own determination.
- Another critical accounting policies as specified in the Statement
Applicable Accounting Standards.
2. Deferred acquisition costs.
Disclosure of the nature, amount, type and method of allocation of deferred acquisition expense charges.
3. To the Policyholder liabilities.
Obligation to breakdown and explanation of the policy holder method, assumptions and calculation systems are used as the basis for calculating the liabilities to policyholders.
4. Subordinated debt.
A description of the characteristics of the subordinated loan agreement, interest rate, and the residual value of the loan.
5. Equity Joint Life Insurance.
A description of the nature and laws and regulations relating to the equity joint venture. A description of the method and the amount of profit sharing to policyholders.
6. Gross Premium Income.
Disclosure of the first year premium income (first year premium) and premium advanced years (renewal) in detail based on a collection of individuals and groups as well as the type of insurance.
7. Claims and Benefits.
Disclosure of the type, number and causes increase in claims and benefits are significant.
Revenue and Expense Recognition Revenues Premiums short-term contracts
Premium short-term contracts (some term life insurance, such as credit life insurance) are recognized as revenue during the contract period in proportion to the amount of insurance protection provided. If the period of risk differs significantly from the contract period, premiums are recognized as income during the periods of risk according to the amount of insurance protection provided.
This causes the premiums are recognized as revenue evenly over the contract period (the period of risk, if different), except if the insurance protection decreases according to a predetermined schedule.
Long-term Contracts Premiums
Long-term contract premiums (whole life contracts and guarranted renewable term life contracts) are recognized as revenue when due from policyholders. Liability for costs incurred in connection with the contract expected to be recognized during the current period and the period of the contract renewal. Present value of estimated future policy benefits ating paid to policyholders or their representatives is reduced by the present value of estimated future premiums ating to be received from the policyholder (ating future policy benefit liabilities) are recognized as premium revenue recognized. Estimates are based on assumptions, such as expected investment returns, mortality, morbidity, termination, and load - load specified at the time the insurance contract was made.
Other income
Reinsurance commissions and profit commissions reinsurance are recognized as other income.
Expense Claims
Claims include claims that have been approved (settled claims), claims in the settlement process (outstanding claims), and claims incurred but not yet reported.
The number of claims in the settlement process, including claims incurred but not reported, are determined based on the estimated liability claims.
Changes in the estimated amount of claims liabilities, as a result of the review process further and claim the difference between the estimated amount of claims paid, is recognized as an increase or reduction of expense in the income statement in the period of change.
Reinsurance claims are recognized as a reduction of expense claims in the same period with the recognition of expense claims.
Acquisition Expense
Acquisition costs are allocated based on actuarial calculations for Future Policy Benefits liability method using Pure Premium Rate (Net Level Premium Method).