SSAP and Blank Updates to the Statutory Financial Statements – 2019 NAIC Spring National Meeting (Part 2)

In our last post we shared the key takeaways from the Statutory Accounting Principles Working Group (“SAPWG”) during the recent NAIC Spring National Meeting in Orlando. To continue the series, in this post we will share the list of adoptions from the Blanks Working Group (“BWG”) meeting and a short summary of each item.

For the benefit of our customers, please note that each of these adoptions will already be implemented and flagged for your assessment in your filings for the first period in which they are effective. Our hope is that this post, as well as our in-app updates for customers, relieve some stress for our each of our readers as you can rely on us to keep you apprised of regulatory updates such as these.

The following modifications were adopted by the BWG during the session, and will be effective for the 2019 Annual Statement:

  • 2018-23BWG – This modification adds questions 34.1 and 34.2 to the General Interrogatories Part 2 for fraternal benefit societies only, along with instructions regarding question 34.2. These questions ask whether or not there are any outstanding assessments in the form of liens against policy benefits that have increased surplus, and, if ‘yes’, requests the filer to list them. This question existed previously on the 2018 fraternal annual and quarterly General Interrogatories Part 2, but were inadvertently left out of the 2019 annual when combined with the life blank, which this adoption corrects.
  • 2018-24BWG – This item adjusts the asset valuation reserve (“AVR”) factors in the life, accident & health/fraternal blank for those where the related risk-based capital (“RBC”) factors have changed due to the federal Tax Cuts and Jobs Act of 2017 (“TCJA”).
  • 2018-27BWG – This modification adds reference to reporting separate account or protected cell to the instructions for Note 5.L(4). The illustrations were also modified to include additional lines for separate accounts or protected cells in addition to the general account, with a notation indicating which lines apply to the general account and which lines apply to the separate accounts or protected cells.
  • 2018-28BWG – Instructions were added to Note 9, Income Taxes, for new disclosures Note 9.H, Repatriation Transition Tax (“RTT”), and Note 9.I, Alternative Minimum Tax (“AMT”) Credit. In addition, an illustration is being added to Note 9.I, which will be data-captured.
  • 2018-29BWG – Line 5, Contract Loans, was removed from the separate accounts assets page in the separate accounts blank.
  • 2018-30BWG – This item modifies the instructions and illustration for Note 10.O, Subsidiary, Controlled or Affiliated (“SCA”) Loss Tracking to include references to the Statement of Statutory Accounting Principles (“SSAP”) No. 48 – Joint Ventures, Partnerships and Limited Liability Companies and SSAP No. 48 entities. Previously the instructions and illustrations referenced SCAs exclusively. This adoption clarifies that SSAP No. 48 entities are not required to complete SSAP No. 97 disclosures unless directed under SSAP No. 48, as outlined by further by Ref #2018-47EP.
  • 2018-31BWG – This modification adds two new categories (unit investment trusts and closed-end funds) to be added throughout the investment schedules (Schedule D, Summary Investment Schedule, Schedule DL parts 1 and 2). This also added those terms, “unit investment trusts” and “closed-end funds”, to the instructions.

The following modification was adopted by the BWG, but is not effective until the first quarter of 2020:

  • 2018-25BWG – This item modifies the reinsurance ceded code list in the health and life, accident & health/fraternal quarterly Schedule S to match the list used for annual statement reporting. In addition, an additional column and associated instructions for type of business ceded were added.

Lastly, the BWG also voted to adopt 17 modifications for exposure (detailed at the link below). To stay up to speed, please be on the lookout for a detailed post this summer, as it is expected may of these will be adopted and effective for the 2019 Annual Statement.

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.

Detailed information on adopted modifications can be found at the following location: