For public entity risk pools , this statement modifies the method for calculating a premium deficiency, and it requires recognition of a premium deficiency liability and expense for the amount by which the premium deficiency exceeds unamortized acquisition costs. It also requires disclosure in the notes to the financial statements. Guidance also is provided for entities other than pools, in the determination of the liability for unpaid claims and provides disclosure requirements. The provisions of this Statement are effective for periods beginning after June 15, 1996.
Early implementation is encouraged.