What are 'Admitted Assets'

Admitted assets are assets of an insurance company that are permitted by state law to be included in the company's financial statements. Although each state has discretion over its own insurance laws, there is a general consensus over which assets are suitable to use when determining the insurance company's solvency. Admitted assets often include mortgages, accounts receivable, stocks and bonds. The assets must be liquid and available to pay claims when necessary.

BREAKING DOWN 'Admitted Assets'

Admitted assets generally include assets that are liquid and whose value can be assessed or receivables that can reasonably be expected to be paid. Since admitted assets are a critical component for computing capital adequacy to state insurance regulators, they have a much narrower definition than might be applied under Generally Accepted Accounting Principles (GAAP).

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