Return to Homepage

LOMA 361 — Accounting and Financial Reporting in Life Insurance Companies

Course Type: Course Portal, Designation
Topics: Finance & Accounting, Life Insurance
Designations: ARA, FLMI
Language: Chinese (simplified), Chinese (traditional), English, French


LOMA 361 provides a broad exposure to financial and managerial accounting in life insurance companies, including the corporate and regulatory environment in which accounting functions occur.


  • The Accounting Function
  • Accounting Regulation and Monitoring
  • Accounting Principles and Concepts
  • Financial Statements and Reports
  • Asset Accounting and Invested Assets
  • Accounting for Other Assets
  • Accounting for Reserves
  • Accounting for other Liabilities
  • Accounting for Capital and Surplus
  • Accounting for Revenues and Expenses
  • Financial Analysis
  • Responsibility Accounting
  • Cost Accounting
  • Cost Analysis
  • Budgeting
  • Internal Control and Auditing

Chapter 1: The Accounting Function

Accounting and Financial Reporting

Users of Accounting Information

Financial Accounting

Management Accounting

Public Accounting

Private Accounting

Account Classification



Owners' Equity



The Basic Accounting Equation

The Operating Cycle

Sources of Funds

Uses of Funds

Double-Entry Accounting

Accounting Entries

Permanent Accounts and Temporary Accounts

Normal Balances

Chapter 2: Accounting Regulation and Monitoring

Accounting Regulation

U.S. Generally Accepted Accounting Principles

Statuatory Accounting Principles

Rules-Based and Principles-Based Approaches

U.S. Regulatory Agencies and Organizations

Financial Tools and Insurer Solvency

Insurance Regulatory Information System Ratios

Financial Analysis and Solvency Tracking System

Scenario Analysis

Contingency Risks

Onsite Regulatory Examinations

Chapter 3: Accounting Principles and Concepts

Financial Statement Concepts

Entity Concept

Going-Concern Concept

Accounting Information Qualitites





Account Maintenance Concepts and Principles

Cost Concept

Measuring-Unit Concept

Full-Disclosure Concept

Time-Period Concept

Revenue Recognition: The Realization Principle

Expense Recognition: The Matching Principle

Accounting Basics

Accrual-Basis Accounting

Cash-Basis Accounting

Chapter 4: Financial Statements and Reports

Financial Statements

Balance Sheet

Income Statement

Cash Flow Statement

Statement of Owners' Equity

Financial Statement Integration

Financial Reports

Annual Report

U.S. Annual Statement

Chapter 5: Asset Accounting and Invested Assets

Asset Valuation

Valuation Methods Based on Cost

Valuation Methods Based on Fair Value

Accounting for Asset Transactions

Investment Accounting





Chapter 6: Accounting for Other Assets

Accounting for Short-Term Assets

Cash and Cash Equivalents

Investment Income Due and Accrued

Deferred Premiums and Uncollected Premiums

Prepaid Expenses

Valuation and Reporting of Real Estate

Recording Purchases and Sales of Real Estate

Property Taxes


Rental Income and Rental Expense

Accounting for Other Assets

Amounts Recoverable from Reinsurers

Policy Loans

Deferred Acquisition Costs

The General Account and Separate Accounts

Chapter 7: ACcounting for Reserves

The Concept of Reserves

Actuarial Assumptions

Types of Reserves

Types of ACcounting Records

Reserves and the Basic Accounting Equation

Reserve Valuation Methods

Gross Reserve Valuation

Net Reserve Valuation

Modified Reserve Valuation

Reserves, Net Income, and Surplus

Reserve Strengthening (Destrengthening)

Surplus Strain

Deferred Acquisition Costs (U.S. GAAP)

Reinsurance and Reserve Credits

Chapter 8: Accounting for Other Liabilities

Policyowner Dividends

Policyowner Dividends Due and Unpaid

Policyowner Dividends Payable in the Following Year

Policyowner Dividend Payment Options

Nonforfeiture Values

Cash Surrender

Reduced Paid-Up for Extended Term Insurance

Death Benefit Payments

Waiver-of-Premium Payments

Supplementary Contract Payments

Premium Liabilities

Premium Suspense Accounts

Premiums Paid in Advance

Premium Deposits

Expenses Due or Accrued

General Expenses

Agent (Producer) Commissions Due or Accrued

Taxes, Licenses, and Fees Due or Accrued

Debt Obligations

Claims Incurred But Not Yet Reported

Chapter 9: Accounting for Capital and Surplus

Capital Accounts

Common Stock

Preferred Stock

Additional Paid-In Capital

Retained Earnings

Treasury Stock

Unrealized Gains and Losses

Surplus Accounts

Special Surplus

Unassigned Surplus

Internal Sources and Uses of Funds for Capital and Surplus

Net Income or Net Loss

Increases or Decreases in Admitted Assets

Reserve Destrengthening or Reserve Strengthening

External Sources and Uses of Funds for Capital and Surplus

Ceding or Assuming Reinsurance

Issuing and Repaying Surplus Notes

Changing Corporate Form

Reporting Changes in Capital and Surplus Accounts

Chapter 10: Accounting for Revenues and Expenses


Premium Accounting

Investment Income Accounting


Contractual Benefit Expenses

Operating Expenses

Chapter 11: Financial Analysis

Financial Ratios

Liquidity Ratios

Activity Ratios

Leverage Ratios

Capital and Surplus Ratios

Profitability Ratios

Chapter 12: Responsibility Accounting

Responsibility Accounting

Responsibility Centers

Responsibility Center Costs

Performance Measurement and Evaluation

Variance Analysis

Responsibility Reports

Segment Reports

Performance Evaluation Issues

Problems with Performance Evaluation Criteria

Chapter 13: Cost Accounting

Cost Classification

Descriptive Classification

Classification by Behavior

Classification by Measurement

Cost Classification

Accumulating Costs by Type

Accumulating Costs by Line of Business

Accumulating Costs by Deparatment or Cost Center

Accumulating Costs by Function

Cost Perspectives

Allocation Bases

Chapter 14: Cost Analysis

Comparative Analysis

Horizontal Analysis

Trend Analysis

Vertical Analysis


Activity-Based Costing

Activity-Based Costing Terminology

Functional Cost Analysis

Functional Cost Accounting System

Functional Unit Costs

Cost-Volume-Profit Analysis

Contribution Margin

Contribution Margin Ratio

Breakeven Point

Uses of Cost-Volume-Profit Information

Segment Margin

Segment Margin Ratio

Chapter 15: Budgeting

Why Budget?

Budgeting Approaches

Top-Down Budgeting and Bottom-Up Budgeting

Zero-Based Budgeting

Budget classifications

Static Budgets and Flexible Budgets

Short-Term Budgets and Period Budgets

Rolling Budgets and Period Budgets

Types of Budgets

Operational Budgets

Cash Budgets

Capital Budgets

Pro Forma Financial Statements

Chapter 16: Internal Control and Auditing

Internal Control

Detective Controls and Preventative Controls

Limitations of Internal Controls

Internal Control System


Internal Auditing

External Auditing

Auditor Operations



 Course Format


Course Portals include the following elements:

  • PDFs of the assigned course materials that can be printed or read online
  • The same interactive Practice Questions and Sample Exams currently found in LOMA Test Preparation Guides (TPGs)
  • Recommended study plans to help learners set goals and manage their study schedule
  • A variety of additional media-oriented features designed to enhance the study and review process

Exam Format

The LOMA 361 exam has 60 questions and a time limit of 2 hours. It is available in I*STAR, Prometric and Paper exam formats.

Study Materials

Accounting and Financial Reporting in Life Insurance Companies (LOMA, 2010)
ISBN 978-1-57974-338-3

Test Preparation Guide for LOMA 361 (LOMA, 2010)
ISBN 978-1-57974-339-0

Optional printed textbook (not included in bundled fee)

Accounting and Financial Reporting in Life Insurance Companies (LOMA, 2010)
ISBN 978-1-57974-338-3
PBD Order # 361-10-10

About Bundled Study Materials

Some courses ("bundled courses") include study materials with your enrollment. A growing list of English-language courses include access to bundled study materials.

For some of these courses, once you enroll, you gain access to the study materials through your My Learning page in LOMANET. These include the Course Portal courses and the Need 2 Know courses.

How to Enroll

Enrolling for Exams and Bundled Courses

LOMA requires proctored examinations for many of its professional designation courses. Exams are administered in LOMA member organizations and in independent testing locations. This section provides information about exam formats, enrollment procedures for both exams and bundled courses, and exam fees.

LOMA exams vary in length from two–three hours. Consult your Test Preparation Guide (TPG) or see the Designation Study Materials Roadmap for specific information about the length of your exam. As new or revised LOMA courses are released, the number of examination questions for some course examinations may change. If you enroll for a bundled course delivered through a LOMA Course Portal, the assigned study materials are included in your enrollment and are accessible via the Course Portal. Your enrollment process will depend on the type of examination you choose to take:

LOMA offers two options for exam enrollment:

  • Online enrollment via LOMANET, our Internet-based education administration system
  • Enrollment forms for paper exams, for use by independent students only, can be found here.

I*STAR and Paper Exam Center Directories for testing at third-party locations


Students who fail exams must pay full dates to retake the exams, in most cases. However, bundled courses (those courses that include exam fees and study materials) have a reduced rate to retake the exam. See LOMA’s Education & Training Catalog for fees.

See the LOMA 361 video

LOMA 361 promo screen