GAAP & SAP Surplus Notes
Surplus notes are debt-like financial instruments issued by insurers interested in raising capital. The domiciliary state insurance commissioner must approve the issuance of surplus notes as well as any payment of principal and interest. Surplus notes are a form of unsecured debt that is subordinated to all claims by policyholders and creditors.
This OnDemand Learning session provides an overview of the accounting for surplus notes under SSAP 41R and ASC 944 and the key differences under each standard.
