2017 NAIC QUARTERLY STATEMENT INSTRUCTIONS PROPERTY APR 2017 REVISIONS

Transcription

1 2017 NAIC QUARTERLY STATEMENT INSTRUCTIONS PROPERTY APR 2017 REVISIONS PAGE 13: Assets Revision: Modify Instruction for Line 24 Reason: Clarify Instructions PAGE 45: Revision: Reason: Notes to Financial Statement Modify Illustration for Note 1A Clarify Illustration EDITOR S NOTE: The above changes are highlighted within the attached instructions that follow this page. Recent Blanks (E) Working Group Agenda Items (Exposure Drafts) may be viewed in detail at the following web site: National Association of Insurance Commissioners 1

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3 Line 24 Health Care and Other Amounts Receivable Include: Bills Receivable Report any unsecured amounts due from outside sources or receivables secured by assets that do not qualify as investments. Amounts due resulting from advances to agents or brokers Refer to SSAP No. 6 Uncollected Premium Balances, Bills Receivable for Premiums, and Amounts Due From Agents and Brokers, for accounting guidance. Health Care Receivables Include pharmaceutical rebate receivables, claim overpayment receivables, loans and advances to providers, capitation arrangement receivables and risk sharing receivables from affiliated and non-affiliated entities. Refer to SSAP No. 84 Health Care and Government Insured Plans Receivables, for accounting guidance. Other amounts receivable that originate from the government under government-insured plans, including undisputed amounts over 90 days due that qualify as accident and health contracts are admitted assets. Refer to SSAP No. 84 Health Care and Government Insured Plans Receivables; and SSAP No. 50 Classification of Insurance or Managed Care Contracts, for accounting guidance. Exclude: Pharmaceutical rebates relating to uninsured plans that represent an administrative fee and that are retained by the reporting entity and earned in excess of the amounts to be remitted to the uninsured plan. These amounts should be reported on Line 17. Line 25 Aggregate Write-ins for Other-Than-Invested-Assets Premiums receivable for government insured plans reported on Lines 15.1, 15.2 or Enter the total of the write-ins listed in schedule Details of Write-ins Aggregated at Line 25 for Other- Than-Invested-Assets. Details of Write-ins Aggregated at Line 11 for Invested Assets List separately each category of invested assets for which there is no pre-printed line on Page 2 (and that are not on Schedule BA). Include: Receivables resulting from the sale of invested assets other than securities. Exclude: Collateral held on securities lending. In accordance with SSAP No. 103 Transfers and Servicing of Financial Assets and Extinguishment of Liabilities, this collateral should be reported on the appropriate invested asset line if the collateral pledged is unrestricted National Association of Insurance Commissioners 13 Revised 04/2017 P/C Quarterly 2017

4 Details of Write-ins Aggregated at Line 25 for Other-Than-Invested-Assets List separately each category of assets (other-than-invested-assets) for which there is no pre-printed line on Page 2. Include: Equities and deposits in pools and associations. COLI Report the cash value of corporate owned life insurance, including amounts under split dollar plans. Consideration paid for retroactive reinsurance contract(s). Refer to SSAP No. 62R Property and Casualty Reinsurance. Other Receivables Report any other reimbursement due the reporting entity. Prepaid pension cost and the intangible asset resulting from recording an additional liability with a description of prepaid pension cost and intangible pension asset, respectively. See SSAP No. 102 Pensions, for guidance. Receivables for securities not received within 15 days of the settlement date are classified as other-than-invested-assets and nonadmitted per SSAP No. 21 Other Admitted Assets. For Property/Casualty companies: Amounts accrued for reimbursement of high deductible claims paid by the reporting entity. Refer to SSAP No. 65 Property and Casualty Contracts, for accounting guidance. Annuities at their present value purchased to fund future fixed loss payments. Refer to SSAP No. 65 Property and Casualty Contracts. Reinsurance premiums paid by a ceding entity prior to the effective date of the contract. Refer to SSAP No. 62R Property and Casualty Reinsurance, for accounting guidance. For Life and Health companies: Reinsurance premiums paid by a ceding entity prior to the due date. Refer to SSAP No. 61R Life, Deposit-Type and Accident and Health Reinsurance. For Life, Accident & Health and Fraternal companies: Any negative IMR that is nonadmitted National Association of Insurance Commissioners 14 P/C Quarterly 2017

5 THE RECONCILIATION TABLE BELOW IS REQUIRED REGARDLESS OF WHETHER THE REPORTING ENTITY HAS ANY STATE PRESCRIBED OR PERMITTED PRACTICES. A reconciliation of the Company s net income and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of ABC is shown below: NET INCOME SSAP # F/S Page F/S Line # (1) ABC Company state basis (Page 4, Line 20, Columns 1 & 3) XXX XXX XXX $... $... (2) State Prescribed Practices that is an increase/(decrease) from (3) State Permitted Practices that is an increase/(decrease) from $ $ (4) NAIC SAP (1-2-3=4) XXX XXX XXX $ $ SURPLUS (5) ABC Company state basis (Page 3, Line 37, Columns 1 & 2) XXX XXX XXX (6) State Prescribed Practices that is an increase/(decrease) from (7) State Permitted Practices that is an increase/(decrease) from $ $ (8) NAIC SAP (5-6-7=8) XXX XXX XXX $ $ C. Accounting Policy 5. Investments Instruction: (6) Loan-backed securities are stated at either amortized cost or the lower of amortized cost or fair value. The retrospective adjustment method is used to value all securities except for interest only securities or securities where the yield had become negative, that are valued using the prospective method. D. Loan-Backed Securities For loan-backed securities, disclose the following: (1) Descriptions of sources used to determine prepayment assumptions. (2) All securities within the scope of SSAP No. 43R Loan-backed and Structured Securities, with a recognized other-than-temporary impairment, disclosed in the aggregate, classified on the basis for the other-than-temporary impairment: Intent to sell. Inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis National Association of Insurance Commissioners 45 Revised 04/2017 P/C Quarterly 2017

6 (3) For each security, by CUSIP, with an other-than-temporary impairment, recognized in the current reporting period by the reporting entity, as the present value of cash flows expected to be collected is less than the amortized cost basis of the securities: The amortized cost basis, prior to any current-period other-than-temporary impairment. The other-than-temporary impairment recognized in earnings as a realized loss. The fair value of the security. The amortized cost basis after the current-period other-than-temporary impairment. (4) All impaired securities (fair value is less than cost or amortized cost) for which an other-than-temporary impairment has not been recognized in earnings as a realized loss (including securities with a recognized other-than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains): a. The aggregate amount of unrealized losses (that is, the amount by which cost or amortized cost exceeds fair value); and b. The aggregate related fair value of securities with unrealized losses. The disclosures in (a) and (b) above should be segregated by those securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 months or longer using fair values determined in accordance with SSAP No. 27 Off-Balance-Sheet and Credit Risk Disclosures. (5) Additional information should be included describing the general categories of information that the investor considered in reaching the conclusion that the impairments are not other-than-temporary. E. Repurchase Agreements and/or Securities Lending Transactions (3) If the entity or its agent has accepted collateral that it is permitted by contract or custom to sell or repledge, disclose the following information by type of program (repurchase agreement, securities lending or dollar repurchase agreement) as of the date of each statement of financial position: b. The fair value as of the date of each statement of financial position presented of that collateral and of the portion of that collateral that it has sold or repledged. I. Working Capital Finance Investments (2) Disclose the aggregate book/adjusted carrying value maturity distribution on the underlying Working Capital Finance Programs by the following categories: maturities up to 180 days and 181 days to 365 days. (3) Disclose any events of default of working capital finance investments during the reporting period. J. Offsetting and Netting of Assets and Liabilities The following quantitative information shall be disclosed (separately for assets and liabilities) when derivative, repurchase and reverse repurchase, and securities borrowing and securities lending assets and liabilities are offset and reported net in accordance with a valid right to offset per SSAP No. 64 Offsetting and Netting of Assets and Liabilities: The gross amounts of recognized assets and recognized liabilities; The amounts offset in accordance with a valid right to offset per SSAP No. 64 Offsetting and Netting of Assets and Liabilities; and The net amounts presented in the statement of financial positions. Assets and liabilities that have a valid right to offset, but are not netted as they are prohibited under SSAP No. 64 Offsetting and Netting of Assets and Liabilities, are not required to be captured in the disclosures National Association of Insurance Commissioners 46 P/C Quarterly 2017