Insurance Learning Center > Insurance Glossary > Assets
Define: Assets
Assets
Assets refer to all the available funds, or properties of every kind or possession of an insurance company. The assets are measured and used as an indicator of the companies ability to pay its debts.
There are three classifications of assets:
- Invested assets
- All other assets
- Total admitted assets
Invested assets refer to things such as bonds, stocks, cash and income producing real estate. All other assets refer to non-income producing possessions such as the building the company occupies, office furniture, and debts owed, usually in the form of deferred and unpaid premiums. Total admitted assets refer to everything a company owns. All other plus invested assets equals total admitted assets.
By law, some states don't permit insurance companies to claim certain goods and possessions, such as deferred and unpaid premiums, in the all other assets category, declaring them nonadmissable.