SSAP and Blank Updates to the Statutory Financial Statements – December 17, 2019 BWG Conference Call

The Blanks Working Group (“BWG”) held a conference call on December 17, 2019, to review and consider the adoption of three previously exposed positions outlined below, as well as consider and expose three new items.

Adopted Items

Each of the items below were adopted as proposed, with no additional comments from the BWG, regulators or other interested parties. Both items will be effective for the 2020 Annual Statement.

  • 2019-26BWG Modified: The exposure adds instructions and a crosscheck for Line 34 of the Analysis of Operations by Lines of Business – Summary for the Life/Fraternal blank. Further, it adds instructions for Column 5 – Indexed Life on the Analysis of Operations by Lines of Business – Individual Life and clarifying instructions to the Analysis of Operations by Lines of Business for Individual Life and Group Life regarding reporting consistent with policy type language in the contract and reporting of policies issued with secondary guarantees that have expired. The final BWG adoption will be included on the website to serve as guidance for year-end 2019 reporting.
  • 2019-27BWG: This exposure removes the alphabetic index from inclusion at the back of all annual statement blanks, instructions, and BWG web page.
Re-Exposed Item

The item below was re-exposed after discussion between the regulators and interested parties.

  • 2019-25BWG Modified: This exposure modifies the instructions in Schedule F, Part 3 – Property and Schedule F, Part 2 – Life/Fraternal Workers’ Compensation Carve-out supplement, to remove the instructions to exclude adjusting other reserves from Column 10. The exposure adds instructions to include those with defense and cost containment reserves in both Columns 10 and 12 in the aforementioned schedules. Lastly, crosschecks are proposed to be added to Schedule P, Part 1.
Exposed Items

The BWG exposed three new items for public comment:

  • 2019-28BWG: This exposure modifies the instructions for the Supplemental Investment Risk Interrogatories, Lines 13.02 through 13.11, clarifying when to identify the actual equity interests within a fund and aggregate those equity interests for determination of the ten largest equity interests. Look-through will not be required for diversified funds.
  • 2019-29BWG: This exposure proposes to modify the instructions and blank for Supplemental Investment Risk Interrogatories Question 14.01. Specifically, the purpose of the proposal is to clarify that Interrogatories 14.06 through 14.15 are to be completed regardless of the answer to question 14.01.  
  • 2019-30BWG: This exposure proposes to add a category and instructions for Reciprocal Jurisdiction Companies in Schedule S for the life/fraternal and health blanks and to Schedule F for the property and title blanks. A list of identification numbers will be added to the instructions for Schedule Y, Part 1A, Schedule Y, Part 2 and Schedule D, Part 6, Section 1 for Reciprocal Jurisdiction Companies. A reference to Reciprocal Jurisdiction Companies will be added in the Trusteed Surplus Statement instructions for life/fraternal, health and property statements.

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. And, as always, make sure to check our continuously-updated set of resources.