deferred tax asset
The deferred tax asset is the amount of loss reserves or unearned premium that is not deducted from an insurer's income when calculating income taxes.
deferred tax asset
The deferred tax asset is the amount of loss reserves or unearned premium that is not deducted from an insurer's income when calculating income taxes.
Additional Information
The deferral in the tax deduction arises because of the requirement to discount loss and unearned premium reserves. The insurer records an asset equal to the expected future amount of the tax deduction.
