Description

Updated: This adoption modifies the reinsurance ceded code list in the health and life, accident & health/fraternal quarterly Schedule S to match the list used for annual financial statement reporting.

This also required the addition of a column and associated instructions for type of business ceded.

Effective 1st Quarter, 2020

New: This adoption modifies both the quarterly instructions and illustration for Note 8 – Derivatives for disclosures adopted by SSAP No. 108 – Derivative Hedging Variable Annuity Guarantees. In addition, the adoption adds Quarterly Schedule DB, Part E and related instructions to the quarterly statement.

The quarterly version of the schedules and Notes disclosures were inadvertently omitted from 2019-14BWG adopted on June 24, 2019. To meet the requirements of SSAP No. 108, this adoption is effective beginning in the first quarter of 2020 for Life/Fraternal, Property, Health, and Title companies. Lastly, this does add Notes 8B(2)a, 8B(2)b, and 8B(2)c to the list of required quarterly disclosures. Note 8A(8), previously Note 8.H, remains required as well.

Effective 1st Quarter, 2020

Updated: This modification adds a Life Experience Data Contact to the Electronic Jurat page for Life/Fraternal companies only.

Health, Property and Title are included in the proposal due to the Jurat instructions being uniform for all statement types.

Effective 1st Quarter, 2020

Upated: This adoption adds a designation modifier to the NAIC Designation column for Schedule D, Schedule DL, and Schedule BA to accommodate the more granular NAIC Designation Category framework previously adopted by the Valuation of Securities (E) Task Force.

Effective Annual 2020

New: This modification adds a question regarding the Executive Summary of the PBR Actuarial Opinion to the Supplemental Exhibits and Schedules Interrogatories to enable regulators to see if the reporting entity has filed it.

Effective Annual 2020

Updated: This adoption modifies the instructions in Schedule F, Part 3 – Property and Schedule F, Part 2 – Life/Fraternal Workers’ Compensation Carve-out supplement, to remove the instructions to exclude “adjusting and other reserves” from Column 10. The modification adds instructions to include the adjusting and other reserves with defense and cost containment reserves in both Columns 10 and 12 in the aforementioned schedules. Lastly, crosschecks are proposed to be added to Schedule P, Part 1.

Effective Annual 2020

New: This modification adds instructions and a crosscheck for Line 34 on the Analysis of Operations by Lines of Business – Summary for the Life/Fraternal blank. Further, it adds instructions for Column 5 – Indexed Life on the Analysis of Operations by Lines of Business – Individual Life and clarifying instructions to the Analysis of Operations by Lines of Business for Individual Life and Group Life regarding reporting consistent with policy type language in the contract and reporting of policies issued with secondary guarantees that have expired.

Effective Annual 2020

Updated: This adoption removes the alphabetic index from inclusion at the back of all annual statement blanks, instructions, and BWG web page.

Effective Anual 2020

Updated: This item modifies the instructions for the Supplemental Investment Risk Interrogatories, Lines 13.02 through 13.11, clarifying when to identify the actual equity interests within a fund and aggregate those equity interests for determination of the ten largest equity interests. Look-through will not be required for diversified funds.

Effective Annual 2020

Updated: This adoption modifies the instructions and blank for Supplemental Investment Risk Interrogatories Question 14.01. Specifically, the purpose of the proposal is to clarify that Interrogatories 14.06 through 14.15 are to be completed regardless of the answer to question 14.01.

Effective Annual 2020

Updated: This modification adds a category and instructions for Reciprocal Jurisdiction Companies in Schedule S for the Life/Fraternal and Health blanks and to Schedule F for the Property and Title blanks. A list of identification numbers will be added to the instructions for Schedule Y, Part 1A, Schedule Y, Part 2 and Schedule D, Part 6, Section 1 for Reciprocal Jurisdiction Companies. A reference to Reciprocal Jurisdiction Companies will be added in the Trusteed Surplus Statement instructions for Life/Fraternal, Health and Property statements.

Lastly, this adoption adds a section to the illustrations for Reciprocal Jurisdiction Companies for Note 23.F(1)f.

Effective Annual 2020

New: This adoption adds crosschecks to Lines 13 and 14 of the Exhibit of Premiums, Enrollment and Utilization (State Page) and to Lines 10 and 11 of the Underwriting and Investment Exhibit (“UIE”), Part 1 in the Health blank. Lastly, this item adds crosschecks to Lines 9, 10, and 11 of the UIE Part 1 and Schedule T, Line 61.

Effective Annaul 2020

Updated: This adoption modifies the instructions for Schedule F, Part 3 to reflect the factors for all uncollateralized reinsurance recoverables from unrated reinsurers be the same for authorized, unauthorized, certified and reciprocal reinsurance.

Effective Annual 2020

Updated: This item ushers in the new Variable Annuities (“VA”) Framework, which is effective for 2020. The supplement blank changes include changing the header for Column 10, changing Lines 1-3 and adding Line 4. The instructions will be adjusted to correspond with changes made to the blanks as well as changes in the 2020 Valuation Manual for the new VA Framework.

Effective Annual 2020

 Updated: This adoption splits Part 1 of the VM-20 Reserves Supplement into Part 1A and Part 1B, removes Part 2 and renumbers the remaining parts. This item also changes the reporting units to be in dollars rather than in thousands of dollars, which requires expanding all columns to allow room for numbers as large as 999 billion and changing the product labels for clarity.

Effective Annual 2020

New: This adoption requires appointed actuaries to attest to meeting Continuing Education (“CE”) requirements and participate in the CAS/SOA CE review procedures, if requested. The changes were adopted by the Task Force on January 28, 2020.

Effective Annual 2020

Updated: This modification removes Line 24.04 from the General Interrogatories, Part 1 and renumbers the remaining lines for Interrogatory Question 24. This also modifies Lines 24.05 and 24.06 to require reporting amounts for conforming and non-conforming collateral programs.

Effective Annual 2020

Updated: This item modifies the columns and rows on the blank pages for the Long-Term Care Experience Reporting Forms 1 through 5 and makes appropriate changes to the instructions for those forms. Changes were made to allow entities to provide more accurate and useful information to regulators and their customers, as well as to facilitate greater consistency among and ease of reporting by insurers.

Effective Annual 2020

New: This adoption adds a new Private Flood Insurance Supplement collecting residential and commercial private flood insurance data to be filed by April 1 each year by Property insurers. This item also revises the Credit Insurance Experience Exhibit (“CIEE”) to collect lender-placed flood coverages in order to provide a more complete picture of the private flood insurance market. During the conference call, revised materials related to incurred claims in this supplement were also adopted with no further comment by staff, regulators, or interested parties.

Effective Annual 2020

Updated: This item was adopted during the call with a friendly amendment to include minor editorial changes. The adoption modifies Questions 3.1 and 3.2 of the General Interrogatories Part 2 on the Property blank to clarify capturing of whether reporting entities have written participating policies in the current calendar year and for reporting the amount of premium written for both participating and non-participating policies.

Effective Annual 2020

Update: This adoption adjusts the Asset Valuation Reserve (“AVR”) presentation to include separate lines for each of the expanded bond designation categories. The BWG and the SVO have adopted 20 bond designations for 2020 reporting. The reported designations will flow into the RBC but will not include factors. The current factor for designations 1-6 will remain in the RBC until an impact analysis can be done to confirm the new factors for the 20 designations. This proposal applies the same expanded presentation to the AVR as it is used to populate the Life RBC formula.

Effective Annual 2020

Updated: This modification clarifies where to find the list of funds that must have NAIC Designation, NAIC Designation Modifier, and SVO Administrative Symbol provided on Schedule D, Part 2, Section 2 (annual) and Schedules D, Parts 3 and 4 (quarterly). It also modifies the reference to the Purposes and Procedures Manual of the NAIC Investment Analysis Office found in other investment instructions due to changes in the manual. The following Investment instructions will be modified: Investment Schedule General Instructions, Summary Investment Schedule, Schedule D, Part 1, Sections 1 and 2 part 2, Schedule E, Part 2, and Supplemental Investment Interrogatories.

Effective Annual 2020

New: This adoption adds an additional code of “%” to the code column for all investments which have been reported on either Schedule DA, Part 1 and Schedule E, Part 2 for more than one consecutive year. A certification will be added to the General Interrogatories, Part 1 inclusion of these investments on the two schedules. The intent of this addition is to identify instances where cash equivalents and/or short-term investments (or substantially similar investments) remain on the applicable investment schedule for more than one reporting period due to the investment being re-underwritten and renewed. This also changes Question 36 on General Interrogatories, Part 1 and renumbers the “Other” General Interrogatories for the questions that follow.

This modification coincided with the adoption of AP&P Ref #2019-20, which revises SSAP No. 2R – Cash, Cash Equivalents, Drafts and Short-Term Investments by incorporating additional principle concepts in classifying investments as cash equivalents or short-term investments. The revisions will restrict the classification of certain investments as a cash equivalent or short-term investment for related party or affiliated investments that would be in the scope of SSAP No. 26R – Bonds, SSAP No. 43R – Loan-Backed and Structured Securities, or that would be reported on Schedule BA in the event that: 1) the reporting entity does not reasonably expect that the investment will actually terminate or mature within the timeframe permitted for cash equivalent or short-term investment classification, 2) the investment was previously reported as a cash equivalent/short-term investment and the initial maturity timeframes have passed, or 3) the investment was sold or matured and the same or substantially similar investment was reacquired within a one year timeframe. This item also adds clarifying language to SSAP No. 103R – Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, paragraph 28.I.

Effective Annual 2020

New: This modification adds code “10” to Schedule D, Part 1 Column 26 – Collateral Type for ground lease financing, renumbering “Other” code to 11.

Effective Annual 2020

New: This adoption adds a new Line 4.05 for valuation allowance for mortgage loans to the Summary Investment Schedule and renumbers existing Line 4.05 to 4.06. This item also modifies the instructions to include a cross-check for new Line 4.05 back to Schedule B – Verification Between Years and clarifies the instructions for Lines 4.01-4.04 to explicitly show crosschecking to Column 8 of Schedule B, Part 1.

Effective Annual 2020

New: This adoption adds a footnote to Exhibit 5 (Life/Fraternal and Health – Life supplement) and Exhibit 3 (Separate Accounts) to disclose cases where a mortality risk is no longer present or a significant factor (possibly due to a policyholder electing a payout benefit) (see also AP&P Ref #2019-08).

Effective Annual 2020