Definition - What does FASB 115 mean?
FASB 115 is a rule that was put in place by the Financial Accounting Standards Board which states that insurers must report their securities with fixed maturities based on their current market value. This is opposed to the value that the securities may have had in the past or that they may have in the future.
Insuranceopedia explains FASB 115
FASB 115 is essentially a financial regulation that insurance companies are compelled to comply with regarding the value of securities. This reporting regulation helps the FASB to monitor insurance companies for legal and taxation purposes. Insurance companies which fail to comply with FASB 115 could face negative consequences such as fines. Because of this fact, it is in the best interest of insurance companies to simply follow this rule and report the value of their securities with fixed maturities based on their current market value.
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