FINANCIAL STATEMENT GLOSSARY
A ACCRUED INVESTMENT INCOME
CASH COLLATERAL BALANCE The amount of cash held on Hudson Indemnity’s books that are used to secure loss fund assessment payments due in the future. Also included in this balance is any interest earned on this amount. D DEFERRED ASSESSMENT RECEIVABLE The portion of assessments not yet billed or due from the policyholder(s) based on the program’s payment plan schedule. DUE TO/FROM BROKER An investment security obtained before the financial statement date but not paid for until after the financial statement date (Due to Broker), or an investment security sold before the financial statement date for which the remittance amount is not received until after the financial statement date (Due from Broker). DUE TO/FROM CEDENT The monthly net cash settlement of collateral and premium received less collateral and losses paid that are in transit to/from the program reinsurer (Hudson Indemnity) and the program investment accounts as of the financial statement date. E EQUITY SECURITIES An instrument that signifies ownership in a corporation and represents a claim on a portion of the corporation’s assets and earnings. Equity securities usually provide steady income as dividends but may fluctuate significantly in their market value with the ups and downs in the economic cycle and the financial position of the corporation. F FIXED MATURITIES A debt instrument that provides a return in the form of fixed periodic interest payments and the eventual return of principal at maturity.
Income earned from mutual funds or fixed maturity investments that is earned but not yet received.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Summation of unrealized gains and/or losses for invested assets that have not yet been purchased or sold as of the financial statement date. ASSESSMENT Additional premium due from policyholder(s) when losses paid and case reserves exceed earned premium within the loss fund layer. ASSESSMENT RECEIVABLE Assessment amounts billed and due from the policyholder(s) as of the financial statement date. ASSET An owned item of economic value that could be converted to cash. B BALANCE SHEET A listing of the program’s assets, liabilities and program equity as of a specific date. C CASE RESERVES An estimated liability for unpaid insurance claims or losses that have occurred as of the financial reporting date. CASH & CASH EQUIVALENTS Short-term, highly liquid investments with a maturity date of three months or less at the time of purchase. Examples include, but are not limited to, money market holdings, short-term government bonds or treasury bills, marketable securities and commercial paper.
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