naic statutory update - iasa · proprietary 2015 stoneriver, inc. proprietary 2015 stoneriver, inc....

Proprietary 2015 StoneRiver, Inc.Proprietary 2015 StoneRiver, Inc.

NAIC Statutory Update

Texas IASANovember 20, 2015Sara CorkStoneRiver, Statutory Accountant

Texas IASANovember 20, 2015Sara CorkStoneRiver, Statutory Accountant

Proprietary 2015 StoneRiver, Inc.

AgendaAgenda

• 2015 Statement Changes• Accounting Revisions


2015 Statement Changes


2014 Items No Longer Deferred2014 Items No Longer Deferred

• Schedule A, B, BA• Electronic columns for Postal Code, Property

Type• Reporting was deferred in 2014 for

Property/Casualty and Health companies• Must report for 2015


All StatementsAll Statements

• Bar code listing removed from instructions• Asset Page

• New Line 15.3 description• “Accrued retrospective premiums ($____) and

contracts subject to redetermination($____)• Resulted from revisions to SSAP No 54 –

Individual and Group Accident and Health Contracts


All StatementsAll Statements

• Cash flow• Do not include non-cash items• Additional disclosure on page for reporting non-

cash operating items included• Resulted from changes to SSAP No. 69 – Cash

Flow


Notes to FinancialsNotes to Financials

• Note 1D – Summary of Significant Accounting Policies and Going Concern• On going disclosures and Note title change

• Annual and interim statement requirement• Revision to SSAP No. 1 – Disclosure of

Accounting Policies …..• Also revisions to SSAPs No. 48, 68, 97

• Affiliate holdings whose audited financials indicate substantial doubt as to ongoing concern ability must be nonadmitted



• Note 5 – Investments• New part 5A(8) for disclosure of mortgage loans

derecognized as a result of foreclosure• Revisions to SSAP No. 37 - Mortgage Loans

• Additional 5G disclosure for low-income housing tax credits• Changes to SSAP No. 93 - Accounting for Low

Income Housing Tax Credits Property Investments



• Note 5J – Offsetting and Netting of Assets & Liabilities



• Note 11 – Debt• Crosschecks added to 11B and instructions for

11B(2)b clarifying the inclusion of FHLB Class A and B membership stock not eligible for redemption

• Note 12 – Retirement• Changes to defined benefit plan disclosure• From revisions to SSAP No. 11 - Postretirement

Benefits and Compensated Balances



• Note 22 – Events Subsequent• Changes to the ACA assessment disclosure• Adds ties to 5-Yr Historical Data


Investment Schedules Investment Schedules

• Schedule A – Part 1• New code to use for reporting of certain real

estate owned by a LLC, meeting SSAP No. 40R requirements• “!” in code column

• Schedule D – Part 1• New instructions for CUSIP and Description

columns• New electronic columns for name of issuer, issue,

ISIN identification, capital structure code


Investment SchedulesInvestment Schedules

Schedule DB – Part D – Section 1


Supplemental Health Care ExhibitSupplemental Health Care Exhibit

• Remove aggregate 2% column; replace with column for Medicare Part C and D reporting

• Clarify reporting for retrospectively rated contracts

• Additional section for reporting of ACA 3R’s receivables

• Cautionary Statement to be added to Blanks website• Numbers reported not exact numbers used for rebate

purposes and or MLR filing


Property/Casualty StatementProperty/Casualty Statement

• Schedule P• Changes in pooling agreement percentages

• If impacts prior accident years, historical data in Schedule P – Parts 1 thru 6 to be restated

• Use new pooling percentages• If only impacts current/future years, no restatement

necessary


Property/Casualty StatementProperty/Casualty Statement

• Definitions of LOBs to appear only in Appendix

• Cybersecurity and Identity Theft Insurance Coverage Supplement • Due April 1

• Terrorism Insurance Supplement may be added yet this year• In July, exposed for comment• On August 5th conference call, lack of motion to adopt• To bring on the agenda again at August National

Meeting


LAH StatementLAH Statement

• Notes 32 and 34• Modifications to correct inconsistencies in the use

of market value and fair value within the instructions

• Now aligns with terminology used in SSAP No. 56 – Separate Accounts

• Changes to XXX/AXXX supplement• Numerous instructional changes• Previous Part 2 divided into Part 2A

(grandfathered or special exemption) and Part 2B (non-grandfathered)


Health StatementHealth Statement

• U&I – Part 2B, Line 10• Instructions revised to provide methodology of

tying Part 2B to Exhibit 3, Health Care Receivables


Health StatementHealth Statement

Line 3, CY amount should equal Gen Int- Part 2, Line 11.4


Accounting Changes


SSAP No. 40RSSAP No. 40R

• Single-member/single-asset LLC holding real estate

• Report on Schedule A; no longer Schedule BA• Not optional• Subject to Schedule A accounting requirements

• Results in cumulative effect of accounting change• SSAP contains instructions for conversion of

valuation

• Effective 1/1/2015


AdoptedAdopted

• AP&P Manual in general• Shortening of SSAP titles• Revisions and technical changes to several

SSAPs to make Manual more consistent• IP’s will no longer be included in the printed AP&P

Manual; starting with the March 2016 edition.

• SSAP No. 24• No accounting changes for extraordinary items

and discontinued operations; only formally adopted GAAP


AdoptedAdopted

• SSAP No. 40R – Real Estate• Encumbrance on wholly owned real estate held in

wholly-owned LLC not considered risk-sharing

• SSAP No. 54 – Individual and Group A&H Contracts • Clarifies accounting and reporting for contracts

subject to redetermination• Added definition of and disclosure for charity care


AdoptedAdopted

• SSAP No. 61R – LAH and Health Reins.• New statement disclosure requirements for

XXX/AXXX reinsurance

• SSAP No. 92 and 102• Incorporate guidance from INT 13-03 into SSAP

• INT 13-03 clarified that the deferral option was not intended to allow for a more favorable surplus position related to pension or OPEB plans


AdoptedAdopted

• SSAP No. 93 • Accounting for investments in qualified affordable

housing projects

• Appendix A-821• Incorporates 2012 Individual Annuity Mortality

Table

• SSAP No. 68• Goodwill limitation test done on individual

company level

• SSAP No. 25• Rejects some GAAP guidance but expands

disclosures


AdoptedAdopted

• SSAP No. 92 and 102• Reject GAAP; maintain current guidance

• SSAP No. 62R – P&C Reinsurance• Accounting and reporting for certain asbestos and

environmental reinsurance with retroactive counterparties

• Changes to Schedule F for P&C companies & new P&C supplement, both in 2016


Exposed for CommentExposed for Comment

• SSAP No. 41 – Surplus Notes• Revisions for valuation revisions • Exposed paper is on SAPWG website

• SSAP No. 1 • Would require disclosure of restricted assets in

quarterly


Exposed for CommentExposed for Comment

• SSAP No. 97 – Affiliates• Nonadmitted assets being admitted through

ownership of non-insurance SCA• Insurance SCAs having permitted or prescribed

practices that affect valuation• Are all the adjustments being made that should be

made to adjust non-stat equity to statutory basis of accounting?

• IPs – most of these items have been previously discussed and decided; current NAIC staff unaware because it was “before their time”


Exposed for Comment Exposed for Comment

• SSAP No. 26 – Bonds (not loan-backed)1. Definition of security2. Contractual amount of principal due3. Non-bond definitions4. ETF analysis 5. Prepayment penalties & acceleration fees

reported as realized gains instead of investment income

6. Amortization guidance for continuously callable bonds

7. Revised measurement method for bonds with make-whole call provisions


Concept Exposures-Concept Exposures-

• SSAP No. 22• Asks for feedback on three specific items for sale-

leaseback transactions

• All investment schedules to be included in Quarterly Statement

• Disband Emerging Accounting Issues Working Group• Incorporate new interpretation process


Questions?Questions?

• Please contact: • Sara Cork• 800.373.3366 x5778• [email protected]

Thanks!

naic statutory update - iasa · proprietary 2015 stoneriver, inc. proprietary 2015 stoneriver, inc....

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