Exposure Drafts, Comment Letters, and Statements of Position
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Description
This proposed statement provides guidance on applying generally accepted accounting principles in accounting for uninsured asserted and unasserted medical malpractice claims, captive insurance companies, retrospectively rated premiums, claims-made insurance policies, and trust funds of health care providers. The statement supplements the AICPA Hospital Audit guide. In general, the accrual of the estimated cost of uninsured asserted and unasserted medical malpractice claims should be based primarily on the health provider's own experience. A health care provider insured under a claims-made policy should accrue the cost of providing tail coverage at the end of the current period. A retrospectively rated insurance policy whose ultimate premium is primarily based on the health care provider's experience does not transfer risk. A wholly owned captive insurance subsidiary should accrue estimated claims of its parent based primarily on the parent's own experience. A trust fund established to pay malpractice claims, whether revocable or irrevocable, should be included in the financial statements of a health care provider.
Publication Date
1983
Relational Format
Book
Keywords
Insurance, Physicians' liability -- Accounting
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Accounting Standards Division, "Accounting for asserted and unasserted medical malpractice claims of health care providers and related issues; Statement of position 87-1;" (1983). Exposure Drafts, Comment Letters, and Statements of Position. 460.
https://egrove.olemiss.edu/aicpa_sop/460
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.