In our first post we outlined the actions taken during the May 28, 2020, Blanks Working Group (“BWG”) conference call that had implications beyond the Notes. In this writing, we will outline the adopted items that directly impacted the Notes.
Adopted Items
Each of the items below were adopted as proposed or modified with friendly or editorial amendments, with no additional comments from the BWG, regulators, or other interested parties. All adoptions are specified as “L” for Life/Fraternal, “P” for Property, “H” for Health, and “T” for Title, or some combination thereof. Adopted items are effective for the 2020 Annual Statement Notes.
- 2020-03BWG Modified: This item modifies the instructions and illustration for Note 13(11) – Surplus Notes, to reflect the disclosure addition for SSAP No. 41R – Surplus Notes being adopted by the Statutory Accounting Principles (E) Working Group (“SAPWG”) (see Ref #2019-37). This modification also changes the numbering of Note 13 – Capital and Surplus, Dividend Restrictions and Quasi-Reorganizations to A through M rather than 1 through 13 (L/P/H/T).
- 2020-04BWG: This adoption modifies the instructions for Note 23.A – Unsecured Reinsurance Recoverables on the Property blank to reflect the disclosure addition adopted by the SAPWG for SSAP No. 62R – Property and Casualty Reinsurance (see Ref #2019-48) (P/T).
- 2020-05BWG Modified: This modification updates the instructions for Note 2 — Accounting Changes and Corrections of Errors, to reflect the disclosure modifications adopted for SSAP No. 3 – Accounting Changes and Corrections of Errors and SSAP No. 51R – Life Contracts (see Ref #2019-47) (L).
- 2020-07BWG: This adoption includes the addition of a new disclosure for Note 23 – Reinsurance for Reinsurance Credit (23.H – Life/Fraternal, 23.E – Health, 23.K – Property) to reflect the disclosure additions for SSAP No. 61R – Life, Deposit-Type Contracts and Accident and Health Contracts Reinsurance adopted by the SAPWG (see Ref #2017-28) (L/P/H).
- 2020-08BWG Modified: This adoption adds a disclosure instruction for Note 10.C – Transactions with Related Parties Not Reported on Schedule Y and combines the existing Note 10.C into 10.B instructions and illustration narrative. This coincides with the disclosure addition for SSAP No. 25 – Affiliates and Other Related Parties being adopted by the SAPWG (see Ref #2019-33) (L/P/H/T).
- 2020-22BWG Modified: In addition to changes to Schedule D noted in our previous post, this adoption also modifies the instructions and illustrations for Note 3.A – Statutory Purchase Method and adds a new Note 3.E – Subcomponents and Calculation of Adjusted Surplus and Total Admitted Goodwill to reflect changes being adopted for SSAP No. 68 – Business Combinations and Goodwill and SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities by SAPWG (see Ref #2020-03). The modifications have been adopted for the 2020 Annual Statement Notes, but the electronic data will not be captured until 2021 (L/P/H/T).
Deferred Item
- 2020-02BWG Modified: This item was intended to modify the instructions and illustration for Note 10.L to reflect the disclosure changes for SSAP No. 97 – Investments in Subsidiary, Controlled, and Affiliated entities outlined by SAPWG. This item was deferred in an effort to best match the concurrent SAPWG item, which has yet to be finalized and adopted (see Ref #2019-14) (L/P/H/T).
Withdrawn Item
- 2020-06BWG Modified: This item was intended to modify the instructions and illustration for Note 19 – Direct Premium Written/Produced by Managing General Agents/Third-Party Administrators to reflect the disclosure addition for SSAP No. 51R – Life Contracts, SSAP No. 53 – Property Casualty Contracts – Premiums, SSAP No. 54R – Individual and Group Accident and Health Contracts, and SSAP No. 59 – Credit Life and Accident and Health Insurance Contracts. The related SAPWG item (see Ref #2019-36) is still in discussion, thus the BWG has withdrawn this item, anticipating further consideration at a later date.
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