Article Abstract:
Insurance companies typically use three approaches to corporate accounting: statutory accounting, generally accepted accounting principles (GAAP), and value added accounting. The problem with statutory accounting is that it is too conservative in its financial projections due to its use of discounted cash flow techniques. GAAP tends to ameliorate this conservatism by putting accounting on a 'going basis.' However the usefulness of GAAP for making financial judgements is compromised by the multiplicity of its models. A synthesis of statutory, GAAP, and value added accounting techniques produces information which is more useful for the users of insurance company financial statements.
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Article Abstract:
New technology allows insurance companies to improve customer service. For example, United Farm Bureau Life Insurance Co has implemented the Client Account Review Evaluation system, which provides a single, detailed computer report on all the policies and coverage for each client. One of the benefits this system provides is to schedule and track regular client meetings, thus improving service. Other technological improvements, such as electronic forms design and up-to-date rate manuals, are described.
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Article Abstract:
Seventy-three participating whole life policies are surveyed based on a $250,000 policy for a man and for a woman, nonsmoker or preferred issue class. A 30-year policy is used, with summaries at five, 10, 20 and 30 years. Each entry includes the company name, policy name and initial premium. Total premiums, total cash dividends, total face amounts, total cash amounts, guaranteed cash values and total premiums are listed for each time increment.
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