Insurance Term - Assets
Assets refer to ‘all the available properties of every kind or possession of an insurance company that might be used to pay its debts.’ There are three classifications of assets: invested assets, miscellaneous assets and total admitted assets. Invested assets refer to things such as bonds, stocks, cash, and income-producing real estate. Miscellaneous assets refer to non-income producing possessions such as the building the company occupies, office furniture, and debts owed, usually in the form of deferred and unpaid premiums. The total admitted assets refers to everything a company owns, e.g., land, machineries, property, etc. Miscellaneous plus invested assets equals total admitted assets. By law, some states in USA don’t permit insurance companies to claim certain goods and possessions, such as deferred and unpaid premiums in the miscellaneous assets category, declaring them as ‘non-admissible’.