A logical first step toward understanding of a life and health insurance company and the...

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