Statutory Accounting Principles - SAP

What are the 'Statutory Accounting Principles - SAP'

The Statutory Accounting Principles (SAP) are a set of accounting regulations prescribed by the National Association of Insurance Commissioners for the preparation of an insuring firm's financial statements.

BREAKING DOWN 'Statutory Accounting Principles - SAP'

Filings prepared using SAP are submitted to individual state regulatory bodies; SAP are regarded as more regulatory and conservative than the GAAP method of preparing financial statements.

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RELATED FAQS
  1. What is accrual accounting in SAP?

    See how accrual accounting practices are handled through the Statutory Accounting Principles and the Systems, Applications ... Read Answer >>
  2. What level of reserve ratios is typical for an insurance company to protect against ...

    Read about the NAIC-inspired risk-based capital, or RBC, requirements imposed on American insurance companies to safeguard ... Read Answer >>
  3. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  4. How should a change in accounting principle be recorded and reported?

    Learn about changes in accounting principle and why businesses make them, as well as the reporting and recording requirements ... Read Answer >>
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    Understand the generally accepted accounting principles and why they were put in place. Learn what entity sets the guidelines ... Read Answer >>
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