Section 924 - Property InsuranceA. This account shall include the cost of insurance or reserve accruals to protect the utility against losses and damages to owned or leased property used in its utility operations. It shall include also the cost of labor and related supplies and expenses incurred in property insurance activities.B. Recoveries from insurance companies or others for property damages shall be credited to the account charged with the cost of the damage. If the damaged property has been retired, the credit shall be to the appropriate account for reserve for depreciation.C. Records shall be kept so as to show the amount of coverage for each class of insurance carried, the property covered, and the applicable premiums. Any dividends distributed by mutual insurance companies shall be credited to the accounts to which the insurance premiums were charged.ITEMS
1. Premiums payable to insurance companies for fire, storm, burglary, boiler explosion, lightning, fidelity, riot, and similar insurance.2. Amounts credited to account 261, Property Insurance Reserve, for similar protection.3. Special costs incurred in procuring insurance.4. Insurance inspection service.5. Insurance counsel, brokerage fees, and expenses. NOTE A. - The cost of insurance or reserve accruals capitalized shall be charged to construction either directly or by transfer to construction work orders from the account.
NOTE B. - The cost of insurance or reserve accruals for the following classes of property shall be charged as indicated:
(1) Materials and supplies and stores equipment, to account 163, Stores Expense or appropriate materials account.(2) Transportation and other general equipment, to appropriate clearing accounts that may be maintained.(3) Utility plant leased to others, to account 412, Income from Utility Plant Leased to Others.(4) Nonutility property, to the appropriate nonutility income account.(5) Merchandise and jobbing property, to account 415, Income from Merchandising, Jobbing and Contract Work. NOTE C. - The cost of labor and related supplies and expenses of administrative and general employees, who are only incidentally engaged in property insurance work, may be included in accounts 920, Administrative and General Salaries, and 921, Office Supplies and Expenses, as appropriate.