A logical first step toward understanding of a life and health insurance company and the related financial reporting considerations is to review the manner in which different interested parties view the end result of the accounting process for capital and surplus transactions, for example, the adequacy of the resulting balances. Key interested parties include: • Policyholders • Agents • Stockholders • Insurance regulators • Rating agencies • Management

Question

Quizplus · Accepted Answer

The capital and surplus accounts are crucial for understanding the financial health and stability of an insurance company, which is of interest to all the listed parties.

A Logical First Step Toward Understanding of a Life and Health