FASB 113

Question 1

FASB 113 - Conditions for indemnit for reinsurance contract

Answer 1

reinsurer incures significant insurance risk (timing and severity); and either reasonable possibility of significant loss or reinsurer takes on virtually all of the insurance risk

Question 2

FASB 113 - Amortization period for prospective reinsurance

Answer 2

contract period

Question 3

FASB 113 - Amortization period for retrospective reinsurance

Answer 3

settlement period

Question 4

FASB 113 - Type of amortization to use

Answer 4

interest method if able to measure amount and timing of recoveries; otherwise recovery method