NAIC Adopted Exposure Drafts for the 2013 Annual Statement Reporting Period
Another year has come and gone and financial reporting departments across the insurance industry are preparing to close their books and draft the Annual Statement Blank for their respective companies. Throughout the year, the Blanks Working Group (“BWG”) of the National Association of the Insurers Commissioners (“NAIC”) have reviewed the exposed drafts and adopted twenty-five items that will take effect in the 2013 annual statement reporting period. A majority of the adoptions will impact all statement types (Life, Fraternal, Health, Property/Casualty, Separate Accounts and Title). However, a few adoptions will only impact a specific statement.
Key changes that impact all statement types, excluding Separate Accounts:
- Modifications to reporting instructions and illustrations to certain Notes to the Financial Statements and Schedules. The notes impacted were Note 9A(4), Note 17C, Note 21C, Note 22 and Note 23F . The impacted Schedules were Schedule D and Y.
- Addition of new lines to existing schedules such as Schedule BA, Schedule F and Schedule S.
- Revisions to certain Notes to the Financial Statements to reflect changes in a particular Statement of Statutory Accounting Practice (“SSAP”). The revisions to Note 5, Investments, were attributable to the changes in SSAP 37, Mortgage Loans.
Key changes that impact Property/Casualty Insurers:
- For all force-placed business, premiums should be reported on the line consistent with the underlying coverage.
- Additional instructions to the Notes of the Financial Statements related to Retroactive Reinsurers, apply to Title Insurers as well.
- Modification to column headings of Schedule F applies to Title Insurers as well.
Key change that impacts Title Insurers:
- There are new requirement to the Annual Audited Financial Reports for auditors to include testing of underlying data provided to the actuary for estimating reserves to the statutory audit process for title insurers.
Key changes that impact Life Insurers and Separate Accounts:
- There is modification to the instructions for asset valuation reserve factors for commercial mortgages.
- There are revisions to the current Interrogatory Question 1 in the Separate Accounts Blank General Interrogatories and additional sub-questions regarding seed money, other fees and expenses and other surplus, applying to Separate Accounts only.
Key change that impacts Health Insurers:
- Addition of a new exhibit, Exhibit 3A – Analysis of Health Care Receivables Collected and Accrued.
The above changes represent a brief overview of the exposed drafts that were adopted by the NAIC and become effective for the 2013 Annual Statement. For the complete listing of the adopted exposed drafts including reference numbers, a brief description and statement type impacted, please click here.