Accounting Dictionary

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Qualifying Insurance Policy

Definition: Under international financial reporting standards, a qualifying insurance policy is issued by an insurer that is not related to the entity. Also, the proceeds of the policy can be used only to pay or fund employee benefits under a defined benefit plan and are not available to the entity's creditors. The proceeds also cannot be paid to the entity, unless they are surplus assets not needed to meet benefit obligations, or the proceeds are reimbursement to the  entity for benefits already paid.