Statutory Accounting Principles - SAP

DEFINITION of 'Statutory Accounting Principles - SAP'

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
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    The expense ratio in the insurance industry is a measure of profitability calculated by dividing the expenses associated ... Read Full Answer >>
  2. What is accrual accounting in SAP?

    The acronym SAP can be used to refer to two different things as it relates to accounting. SAP refers to a unique set of accounting ... Read Full Answer >>
  3. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
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