Cash and investments that meet criteria for liquidity and safety set by the National Association of Insurance Commissioners and by individual state commissioners. Only admitted assets are used in measuring the capacity and soundness of an insurer. Non-admitted assets, such as overdue receivables, are excluded from statutory assts and surplus.
Assets of an insurer permitted by insurance regulatory authorities to be taken into account in determining the insurer's financial condition under statutory accounting practices.
Assets recognized and accepted by state insurance laws in determining the solvency of insurers and reinsurers. To make it easier to assess an insurance company's financial position, state statutory accounting rules do not permit certain assets to be included on the balance sheet. Only assets that can be easily sold in the event of liquidation or borrowed against, and receivables for which payment can be reasonably anticipated, are included in admitted assets. (See Assets)
Assets permitted by state law to be included in an insurance company's annual statement. These assets are an important factor when regulators measure insurance company solvency. They include mortgages, stocks, bonds, and real estate.
Assets whose values are permitted by state law to be included in the annual statement of the insurer. (G)
The assets of an insurance company that are recognised by a supervisory authority for the purpose of determining the company's financial condition (U.S.).