The Statutory Accounting Principles Working Group (“SAPWG”) held a conference call on January 27, 2022. This post is intended to provide an informative snapshot of what was accomplished during the meeting, as well as help accelerate your determination of the impact the adoptions and modifications will have on your financial statements.
The SAPWG reviewed and adopted the following two items that were previously exposed for comment. The nonsubstantive revisions are effective immediately and apply to all lines of business (Life/Fraternal, Property and Health), unless otherwise noted.
- Ref #2021-18: SSAP No. 108 – VM-21 Scenario Consistency Update – This item modifies SSAP No. 108 – Derivatives Hedging Variable Annuity Guarantees and is effective retroactively as of December 31, 2021. Editorial updates were made to the SSAP to ensure consistency with the Valuation Manual. Specifically, modifications were made to paragraph 14 and a new footnote was added to provide additional detail relating to the VM-21 Standard Projection scenario. (Life/Fraternal only)
- Ref #2021-31: Life Reinsurance Disclosure Clarifications – This item adopts editorial revisions to SSAP No. 61R – Life and Health Reinsurance in response to questions received from members of the American Institute of Certified Public Accountants’ NAIC Task Force regarding the life reinsurance disclosures and the related audited notes that were first effective December 31, 2020. The adopted ‘friendly amendments” to SSAP No. 61R narrow the scope of the disclosures and clarify what is required. (Life/Fraternal only)
As always, Gain Compliance integrates the latest changes into the NAIC guidelines to streamline the reporting process. If there are any further questions or comments, please do not hesitate to reach out.
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