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 >>
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    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?

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  4. How should a change in accounting principle be recorded and reported?

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