Admitted Assets
Barron's Insurance Dictionary:
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Admitted Assets
Assets permitted by state law to be included in an insurance company’s annual statement. These assets are an important factor when regulators measure insurance company solvency.
They include mortgages, stocks, bonds, and real estate. Historically, a large part of admitted assets consisted of long term mortgages, but with the advent of current assumption whole life insurance policies, short term financial instruments can be used to make up a large part of admitted assets.
They include mortgages, stocks, bonds, and real estate. Historically, a large part of admitted assets consisted of long term mortgages, but with the advent of current assumption whole life insurance policies, short term financial instruments can be used to make up a large part of admitted assets.
| Admiralty Proceeding, Admiralty Liability, Administrator | |
| Admitted Company, Admitted Insurance, Advance Funding |
Investopedia Financial Dictionary:
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Admitted Assets
Assets of an insurance company that are permitted by state law to be included in the company's financial statements. Although each state has discretion over its own insurance laws, there is a general consensus over which assets are suitable to use when determining the insurance company's solvency.
Investopedia Says:
Admitted assets generally include assets that are liquid and whose value can be assessed, or receivables that can reasonably be expected to be paid. Since admitted assets are a critical component for computing capital adequacy to state insurance regulators, they have a much narrower definition than might be applied under generally accepted accounting principles (GAAP).
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Barron's Insurance Dictionary
Dictionary of Insurance Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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