fbpx

Statement Modifications Effective as of the 2022 Annual Statement

(Notes-related modifications are recorded separately in Gain’s Resource Library).

Reference

Line of Business

Impacted Schedules

Description

Property

Underwriting & Investment Exhibit Parts 1, 1A, 1B, 2 and 2A

Exhibit of Premiums and Losses (State Page)

Insurance Expense Exhibit

Quarterly Part 1 and 2

Updated: This adoption modifies the Annual Statement Line numbers (ASL) to include additional breakouts of certain lines to ensure consitency across schedules and to change the Health ASL categories to match the lines of business (LOB) categories used in the Health and Life/Fraternal statements.

Effective 1st Quarter 2022

References: 2020-33BWG Modified

Life/Fraternal, Property, Health, Title

Schedule D, parts 1-5

Schedule DA

Schedule DL

Schedule E, Part 2

Summary Investment Schedule

Summary by Country

Schedule D, Part 1A (Sections 1 and 2)

Updated:This adoption expands the number of characters used from seven to ten in the investment line categories for the schedules listed. It adds line categories for Unaffiliated Certificates of Deposit and Exchange Traded Funds. It will split the line categories for Mutual Funds, Investment Unit Trusts and Closed-End Funds into lines indicating if the fund has been assigned a designation by the SVO or not. Changes will be made to the Summary Investment Schedule, Summary by Country and Sch D, Part 1A (Sections 1 and 2) to reflect the additional line categories. The purpose of the proposal is to change the line number size to accommodate more line categories and to allow for room in the numbering scheme for Schedules D, DA, DL and E to add additional lines in the future without major distruption of line numbering. It also adds new lines to address crosscheck issues and reporting questions that have been received in the past.

Effective 1st Quarter, 2022

References:2020-35BWG Modified

Life/Fraternal, Property, Health, Title

General Interrogatories, Part 1

Updated: This adoption removes language from General Interrogatories, Part 1, Line 4.1 regarding the requirement of filing a quarterly merger/history form

Effective 1st Quarter, 2022

References: 2021-10BWG

Life/Fraternal, Property

Schedule H

Updated: This adoption expands the the lines of business reported on Schedule H for Life and Property to match the lines of business reported on the Health Statement.

Effective Annual 2022

References: 2021-14BWG Modified

Life/Fraternal, Health

Exhibit 7 (Life)

Life Supplement – Exhibit 7 (Health)

Updated: This item adds a footnote to Exhibit 7 in the Life/Fraternal Statement and the Health Statement (Life Supplement) to capture the amount of FHLB Funding Agreements reported in Columns 1 through 6 of the exhibit. The adoption coincides with the SAPWG adoption of AP&P Ref #2021-16.

Effective Annual 2022

References: 2021-15BWG, AP&P Ref #2021-16

Health

Underwriting & Investment Exhibit Parts 1, 2, 2A, 2B and 2D

Exhibit of Premiums, Enrollment and Utilization

Quarterly Exhibit of Premiums, Enrollment and Utilization

Quarterly Underwriting and Investment Analysis of Claims Unpaid

Updated: This item adds columns and lines to U&I Parts 1, 2, 2A, 2B and 2D and to the Exhibit of Premiums, Enrollment and Utilization in the Annual Statement to bring the lines of business reporting in sync with Life/Fraternal and Property. Lines and columns will also be added to the 2023 Quarterly Exhibit of Premiums, Enrollment and Utilization and the U&I Analysis of Claims Unpaid. The instructions will be updated to reflect these changes.

Effective Annual 2022

References: 2021-19BWG Modified

Life/Fraternal, Property, Health, Title

Schedule D, Part 1 Schedule BA

Updated: This item concides with the SAPWG adoption of AP&P Ref #2021-15. The Investment Schedules General Instructions were modified to exclude residual tranches or interests from being reported as bonds on Schedule D and adds lines to Schedule BA for the reporting of those investments.

Effective Annual 2022

References: 2021-21BWG Modified, AP&P Ref #2021-15

Life/Fraternal, Property, Health, Title

Schedule B

Schedule BA

Schedule D, Parts 1-5

Schedule DA

Schedule DL

Schedule E, Part 2

Schedule DB, Parts A, B, C, D and E

2023 Quarterly Schedule B, BA, D, E Part 2, DL and DB

Updated: This item adds electronic columns to the investment schedules to capture information regarding investment transactions with related parties. In addition to capturing direct loans in related parties, it will also capture information involving securitizations (or other similar investments) where the related party is a sponsor/originator along with whether the underlying investment is in a related party. This information will be captured regardless if the specific affiliate definition has been met or if there has been a disclaimer of affiliation/control.

Effective Annual 2022

References: 2021-22BWG Modified

Life/Fraternal, Separate Accounts

Asset Valuation Reserve

New: This item adds new reportling lines for Residual Tranches or Interests to the AVR Equity and Other Invested Asset Component blank (and renumbers the lines below).

Effective Annual 2022

References: 2021-23BWG Modified

Life/Fraternal, Property, Health, Title

General Interrogatories, Part 1

Updated: This item adds new questions to the Investment section of General Interrogatories, Part 1 on whether the reporting entity accepts cryptocurrency for payment of premiums, which cryptocurrencies are accepted and whether they are held for investment or immediately converted to U.S. dollars. Questions 38.1, 38.2, 39.2, 39.21, 39.22 and 39.3 will be added, forcing the subsequent questions in the “Other” section of the interrogatories to be renumbered. This BWG item is associated with the SAPWG adoption of AP&P Ref #2021-24.

Effective Annual 2022

References: 2022-01BWG, AP&P Ref #2021-24

Life/Fraternal, Property, Health, Title

Schedule D, Part 6

Updated: This item adds four new electric only columns to Schedule D, Part 6, Section 1 for Prior Year Book/Adjusted Carrying Value (Column 16), Prior Year Nonadmitted Amount (Column 17), Prior Year Sub-2 Verified Value (Column 18) and Prior Year VISION filing number (Column 19). This BWG item is associated with the SAPWG adoption of AP&P Ref #2021-22.

Effective Annual 2022

References: 2022-02BWG Modified, AP&P Ref #2021-22

Life/Fraternal, Property, Health, Title

Schedule T

New: This item adds clarifying line numbers to the active status data points in the Schedule T footnote.

Effective Annual 2022

References: 2022-05BWG Modified

Life/Fraternal, Property, Health

General Instructions

General Interrogatories

Updated: This item amends the Health Annual Statement Test language in the Annual Statement Instructions.

Effective Annual 2022

References: 2022-06BWG Modified

Health

Actuarial Opinion

New: This item modifies the language in sections 1A, 4, 5, 7 and 9 of the Health blank Annual Statement instructions related to the actuarial opinion to ensure that all items (actuarial assets and liabilities) within the scope of the statement of actuarial opinion are treated consistently.

Effective Annual 2022

References: 2022-07BWG

Property

Actuarial Opinion

Updated: This item modifies the guidance in sections 1, 3 and 8 of the Property blank Annual Statement instructions related to the actuarial opinion.

Effective Annual 2022

References: 2022-08BWG

Life/Fraternal

VM-20 Reserves Supplement

Supplemental Exhibits and Schedules Interrogatories (Quarterly)

Updated: This item modifies the VM-20 Reserves Supplement, Part 2. Question 3 will be added to allow disclosure of the year the Life PBR Exemption was actively filed and a confirmation of the eligibility criteria in the case of ongoing exemptions. In addition, this item will correct references to a state “granting” an exemption, since this is often not the case (e.g., the exemption may be allowed). The Supplemental Exhibits and Schedules Interrogatories on the Quarterly statement will be modified to add instructions for how to respond to Question 8 if the company is utilizing the ongoing exemption.

Effective Annual 2022

References: 2022-09BWG

Life/Fraternal, Property, Health

Schedule T

State Pages

Accident and Health Policy Experience Exhibit

Updated: This item coincides with SAPWG AP&P Ref #2022-03. The instructions have been updated for Schedule T, State pages and A&H Policy Experience Exhibit to clarify guidance for reporting premium adjustments by jurisdiction.

Effective Annual 2022

References: 2022-10BWG, AP&P Ref #2022-03

Life/Fraternal, Separate Accounts

Asset Valuation Reserve

Updated: This item updates the AVR factors to be consistent with the RBC factors for the expanded bond designation categories that were implemented in the Life RBC for 2021 year-end reporting. The AVR maximum reserve factors were updated to reflect the existing relationship to the RBC after-tax factors. The AVR basic contribution and reserve objective factors were updated to reflect the existing relationships to the maximum reserve factors.

Effective Annual 2022

References: 2022-11BWG Modified

Life/Fraternal

Five Year Historical

Updated: This item modifies the Five-Year Historical Data questions 68 and 69 to reference group comprehensive and modifies questions 70 and 71 to reflect inclusion of all health lines of business other than group comprehensive. Crosschecks for these questions will be modified accordingly. The changes coincide with the changes to the lines of business captured on Schedule H.

Effective Annual 2022

References: 2022-13BWG Modified

For a comprehensive list of modifications and exposures, see the following resources:

Modifications:

SAPWG Modifications: See the Accounting Practices and Procedures Manual Update page (this requires a subscription and login to the NAIC AP&P Manual Updates).

BWG Modifications: https://naic-cms.org/cmte_e_app_blanks_related_adopted_mods.htm

NAIC Maintenance Agenda: https://www.naic.org/documents/committees_e_app_sapwg_Maintenance_Agenda.xlsx

Exposures:

SAPWG Exposures: https://www.naic.org/exposure_drafts.htm?cmte_e_app_sapwg.htm

BWG Exposures: https://www.naic.org/exposure_drafts.htm?cmte_e_app_blanks.htm

Make sure to check out our other blog posts, and follow Gain Compliance on LinkedInFacebook and Twitter.