What is the definition of Annual Statement?

The Annual Statement provides the concise snapshot or summary of the insurance company's finances for a given year of operation. The State Insurance Commission in the state where the insurance company operates requires that this report be submitted every year.

The Annual Statement shows not just what the company earned, but pertinent information such as the amount of reserves it has, its assets, its expenses and liabilities. It also provides information on its investment portfolio, as well as a list of employees that are paid over a certain limit in annual salaries and benefits.

The Annual Statement is the state insurance commission's way of checking whether an insurance company is able to pay for claims against insurance policies they have. The Annual Statement is also used to provide statistics for the insurance industry in that specific state.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability