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What confirms the hypothesized interest rate sensitivities and shows that the two lines of business are fairly complementary?
A logical first step toward understanding of a life and health insurance company and the related financial reporting considerations is to review the manner in which different interested parties view the end result of the accounting process for capital and surplus transactions, for example, the adequacy of the resulting balances.
Key interested parties include:
* Policyholders
* Agents
* Stockholders
* Insurance regulators
* Rating agencies
* Management
The entity transferring the risk is called the ceding entity and the entity to which the risk is transferred is called the assuming entity.
Principal objectives of state statutes are: to investigate and settle some or all of the