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Proposed Industry Accounting Guide : Insurance Agents And Brokers ;Insurance Agents And Brokers; Exposure Draft (American Institute Of Certified Public Accountants), 1991, Aug. 15, American Institute Of Certified Public Accountants. Insurance Agents And Brokers Task Force

Exposure Drafts, Comment Letters, and Statements of Position

This proposed industry accounting guide (guide) provides guidance on applying generally accepted accounting principles in financial statements of insurance agents and brokers (brokers). Briefly, the proposed guide recommends the following: 1. For services involving the placement of insurance coverage, brokers should recognize revenue from regular commissions, negotiated commissions, and shared or split commissions on the revenue recognition date, which is the date when all of the following criteria are met: a. Protection is afforded under the insurance policy (that is, coverage is effective). b. The premium due under the policy is known or can be reasonably estimated. c. Substantially all …