SSAP and Blank Updates to the Statutory Financial Statements – May 25, 2022 BWG Conference Call

The Blanks Working Group (“BWG”) held a conference call on May 25, 2022 to review and consider the adoption of thirteen previously deferred or exposed positions. Of those thirteen items, twelve were adopted. One item was deferred and re-exposed to allow for further comments and discussion.

Adopted Items

The items below were adopted with minor editorial updates and/or with additional comments (i.e. friendly amendments) 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 2022 Annual Statement, except where noted differently.

  • 2021-22BWG Modified: 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. The exposure is associated with Ref #2021-21 of the Statutory Accounting Principles Working Group (SAPWG). (L/P/H/T)
  • 2022-01BWG: 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 SAPWG Ref #2021-24. (L/P/H/T)
  • 2022-02BWG: This items 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 adoption is associated with SAPWG Ref #2021-22. (L/P/H/T)
  • 2022-03BWG: This item will be effective 1st Quarter 2023, splitting Line 5 of the Quarterly Part 1 – Loss Experience and Part 2 – Direct Premiums Written into Line 5.1 – Commercial multiple peril (non-liability portion) and Line 5.2 – Commercial multiple peril (liability portion). This change was missed in 2020-33BWG, which was effective with the 2022 Quarterly statement. (P)
  • 2022-04BWG: This item replaces 2021-13BWG and adds a new Property supplement due March 1st. The new supplement will capture premium and loss data for Annual Statement Line 17.1, 17.2 & 17.3 of the Exhibit of Premiums and Losses (State Page) – Other Liability by more granular lines of business. This adoption is not effective until Annual 2023. (P)
  • 2022-05BWG Modified: This item adds line numbers to the Active Status footnote in Schedule T to provide clarity as to which line each status is to be reported. (L/P/H/T)
  • 2022-06BWG Modified: This item revises the Health Annual Statement Test language in the Annual Statement Instructions and changes the statement references in the Life and Property General Interrogatories. (L/P/H)
  • 2022-07BWG: 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. (H)
  • 2022-08BWG: This item modifies the guidance in sections 1, 3 and 8 of the Property blank annual statement instructions related to the Actuarial Opinion. (P)
  • 2022-09BWG: 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. (L)
  • 2022-10BWG: This item is associated with a concurrent SAPWG exposure adopted on May 24, 2022 (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. (L/P/H)
  • 2022-11BWG Modified: This item updates the AVR factors to be consistent with the RBC factors for the expanded bond designation categories that were implemented in the 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. (L)

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