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National College Credit Recommendation Service
LOMA | Evaluated Learning Experience
Accounting and Financial Reporting in Life Insurance Companies (LOMA 361)
Formerly Accounting and Financial Reporting in Life Insurance Companies [FLMI 361]
Independent study and proficiency examination program administered from the central offices of LOMA.
Version 1: January 1997 - June 2002.* Version 2: July 2002 - October 2017.
Instructional delivery format:
Version 1 and 2: Upon successful completion of the course, students will be able to: distinguish between generally accepted accounting principles (GAAP) and statutory accounting principles (SAP) and describe important reports prepared using GAAP and SAP, such as the Annual Report and the Annual Statement; describe the components and purposes of an insurer's key financial statements-the balance sheet, income statement, cash flow statement, and statement of owners' equity, and explain the relationships among these financial statements; define the five major account classifications—assets, liabilities, owners' equity, revenues, and expenses, and identify examples of each type of account classification for life insurers; describe the different types of financial ratios used by life insurers and evaluate the financial ratio results for a life insurer over time and in comparison to the results other companies; explain and apply the tools of management accounting, including responsibility accounting, cost accounting, financial analysis, and budgeting; and describe the principles of an effective system of internal controls and explain the importance of audits for life insurers.
Version 1: Major topics include: the accounting function; accounts and the double entry system; the accounting cycle; the conceptual framework of financial accounting; the annual report; an overview of the annual statement; accounting for invested and other assets; accounting for liabilities: reserves; accounting for policy benefits and other liabilities; accounting for capital, surplus, revenues, and expenses; the time value of money; management and cost accounting; budgeting; responsibility accounting; financial statement analysis; internal control and auditing. Version 2: Major topics include: accounting information; the accounting cycle; accounting concepts and principles; internal control and auditing; responsibility accounting; cost accounting; cost analysis; budgeting; financial statements and reports; accounting for invested assets; accounting for other assets; accounting for reserves; accounting for liabilities other than reserves; accounting for capital and surplus; accounting for revenues; accounting for expenses; financial ratio analysis of life insurance companies; regulatory monitoring of life insurance companies.
Version 1 and 2: In the lower division baccalaureate/associate degree category, 3 semester hours in Financial Accounting or as Survey of Accounting for non-accounting majors (12/97) (6/02 revalidation) (1/08 revalidation) (10/12 revalidation) (3/20 revalidation). *NOTE: Earlier versions of this course, dating from January 1965 to March 1997, have been recommended for credit. Please refer to Accounting in Life and Health Insurance Companies (FLMI 360) under 73 for further information or contact NCCRS.