SSAP and Blank Updates to the Statutory Financial Statements – March 16, 2021 BWG Conference Call

The Blanks Working Group (“BWG”) held a conference call on March 16, 2021, to review and adopt seven previously exposed positions outlined below.

Adopted Items

Each of the items below were adopted as proposed or modified with minor editorial or friendly amendments, with no additional comments from the BWG, regulators, or other interested parties. All adoptions are applicable to either the Life/Fraternal, Property, Health, and Title blanks, as specified by “L” for Life/Fraternal, “P” for Property, “H” for Health, and “T” for Title, or some combination thereof. Adopted items are effective for the 2021 Annual Statement, except where noted differently.

  • 2020-32BWG: This item adds a new Health Care Receivables Supplement to the Life/Fraternal Annual Statement that will include Exhibits 3 and 3A from the Health Annual Statement. The purpose of the proposal is to allow for more consistency of reporting between the life and health blanks with regards to health care receivables. The addition is intended to provide regulators with detailed health care receivables information from life companies that write a large amount of health business to allow for analysis at the nationwide level. In addition, it will add a new question #37 to the Supplemental Exhibits and Schedules Interrogatories and renumber the remaining questions. (L)
  • 2020-33BWG Modified: Effective Q1 2022, this item modifies the Annual Statement Line (ASL) numbers on the Underwriting and Investment Exhibits, State Page and Insurance Expense Exhibit (IEE) to show the same line numbers across schedules. The same modification will be made to the Quarterly Parts 1 and 2. Interrogatory Question 1 for the IEE will be eliminated and the Health ASL categories will be changed to match the lines of business (LOB) categories used in the Health and Life/Fraternal statements. The appropriate LOB definitions for these lines will be added to the appendix of the Annual Statement Instructions. The ASL references on the State Page and IEE instructions will be modified to reflect the additions of ASL numbers to the exhibits mentioned above. (P)
  • 2020-34BWG: This item adds definitions for the Occupational Accident, Fiduciary Liability, Premises and Operations (OL&T and M&C), Professional Errors and Omissions Liability, Kidnap & Ransom Liability and Tuition Reimbursement Plans products to the appropriate line of business in the appendix of the Annual Statement Instructions. (P)
  • 2020-35BWG Modified: This adoption expands the number of characters used from seven to ten in the investment line categories for Schedule D, Parts 1-5, Schedule DA, Schedule DL and Schedule E, Part 2. It adds line categories for Unaffiliated Certificates of Deposit and Exchange Traded Funds and 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 Schedule 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 disruption of line numbering. It also adds new lines to address crosscheck issues and reporting questions that have been received by the NAIC in the past. (L/P/H/T)
  • 2020-36BWG: With the adoption of this item, the General Schedules Investment Instructions and Schedule DB General Instructions will be modified to reflect treatment of publicly traded stock warrants as being in the scope of SSAP No. 30R – Unaffiliated Common Stock or SSAP No. 32R – Preferred Stock and reporting as common and preferred stock. This adoption coincides with the Statutory Accounting Principles Working Group (SAPWG) adoption of Ref #2020-33 on March 15, 2021. (L/P/H/T)
  • 2020-37BWG Modified: This item adds a new Schedule Y, Part 3 to the Annual Statement to capture all entities with ownership greater than 10%, the ultimate controlling parties of those owners and other entities that the ultimate controlling party controls. This item coincides with the SAPWG adoption of Ref #2020-34 on March 15, 2021. (L/P/H/T) 
  • 2020-38BWG Modified – This item modifies the Accident and Health Policy Experience Exhibit by adding new columns, removing lines distinguishing “with” and “without” contract reserves, adding some new product lines and eliminating the summary tables. The original exposure was modified to keep the exhibit due date as April 1st and the discussion regarding reporting the exhibit “by state” will continue throughout 2021 with possible adoption for the 2022 Annual. (L/P/H)

Updates from prior meetings are available in Gain’s growing library of resources.

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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