Law passed by a legislative body including administrative boards, municipal courts, and legislatures (e.g., legislative branch of the federal government). See act . Also called act or law .
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MEDICAL,USA: An act of Parliament.

Guidelines that insurance companies are required to follow when filing an annual financial statement (convention blank) with state insurance regulatory authorities. Statutory accounting is more conservative than generally accepted accounting principles (GAAP) because it overstates expenses and liabilities and understates income and assets. Also see generally accepted accounting principles (GAAP) .

Funds (reserves) set aside and designated for future financial liabilities for life or health insurance that are required by state regulations. Also called legal reserve .