What are ‘Divulged Assets’
Admitted assets are assets of an insurance company that are permitted by aver law to be included in the company’s financial statements. Although each state has pleasure over its own insurance laws, there is a general consensus over which assets are befitting to use when determining the insurance company’s solvency. Admitted assets instances include mortgages, accounts receivable, stocks and bonds. The assets necessity be liquid and available to pay claims when necessary.
BREAKING DOWN ‘Permitted Assets’
Admitted assets generally include assets that are convertible and whose value can be assessed or receivables that can reasonably be expected to be repaid. Since admitted assets are a critical component for computing capital adequacy to conditions insurance regulators, they have a much narrower definition than effectiveness be applied under Generally Accepted Accounting Principles (GAAP).