Deferred Acquisition Costs


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Deferred Acquisition Costs

In insurance, an expense to a customer that an insurance company initially pays, but recoups the funds from the customer gradually over the life of the insurance policy or other contract.
References in periodicals archive ?
Unamortized deferred acquisition costs and the present value of future profits (1) continue to be subject to premium deficiency testing in accordance with the provisions of FASB Statement No.
97 specifies that unamortized deferred acquisition costs related to traditional life insurance contracts replaced with universal life-type contracts issued by the same insurance enterprise shall not be deferred in connection with the replacement contract.
Subsequent modifications made only to the nonintegrated contract feature or coverage should be evaluated under paragraphs 9 through 15 of this SOP separately from the base contract, and any deferred acquisition costs related to the nonintegrated contract feature or coverage accounted for accordingly.
4a) Unamortized deferred acquisition costs, (5a) unearned revenue liabilities, and deferred sales inducement assets associated with the replaced contract should continue to be deferred and amortized or earned in connection with the replacement contract.
05 per share), after income tax and the impact of deferred acquisition costs.
Operating earnings of $882 million, up significantly from $277 million, largely due to strong business growth, significant equity market improvements, the unlocking of deferred acquisition costs and other adjustments, higher net investment income and improved interest spreads
Insurance Products operating earnings were $400 million, up 55% due in large part to higher net investment income, solid underwriting results in both group life and individual life, as well as the positive impact of the unlocking of deferred acquisition costs and other adjustments in individual life.
The fourth quarter of 2009 benefited from increased fee revenue due to higher equity market levels, the positive impact of the unlocking of deferred acquisition costs and other adjustments as well as a significant improvement in net investment income.