NAIC Blanks Working Group Update

Size: px

Start display at page:

Download "NAIC Blanks Working Group Update"

Jessie Burns
6 years ago
Views:

1 IASA Northeastern Chapter Annual Conference NAIC Blanks Working Group Update Mystic, CT November 19, 2015 Peter Austin, Second Vice President, Accounting Policy The Travelers Companies, Inc.

2 Agenda Learning Objectives Overview of the Blanks Working Group (BWG) and its Process BWG Update: Changes effective Annual Changes to Date Fall National Meeting Agenda Items

3 Learning Objectives Overview of the BWG and the procedure for changes Discuss changes effective for 2015 Annual Reporting Preview of 2016 Changes NAIC Fall National Meeting Agenda Items

4 Overview of BWG Plenary 56 NAIC Members Financial Condition (E) Committee 13 Members RI Chair ME Vice Chair AP&P Task Force 39 Members CA Chair TX Vice Chair Executive Committee 20 Members Other Committees & Task Forces Capital Adequacy Task Force (CADTF) 24 Members TX Chair UT Vice Chair BWG Membership Utah (Chair) California (Vice Chair) Alabama Alaska Delaware District of Columbia Florida Indiana Iowa Maine Michigan Nebraska New Hampshire New Jersey Oklahoma Oregon Pennsylvania Tennessee Vermont West Virginia Wisconsin Statutory Accounting Principles WG (SAPWG) 13 Members OH Chair IA Vice Chair Emerging Accounting Issues WG (EAIWG) 13 Members IA Chair OH Vice Chair Blanks WG 21 Members UT Chair CA Vice Chair Only SAPWG & EAIWG are Authorized to Modify the AP&P Manual The NAIC plans to eliminate the EAIWG and move the function to the SAPWG, with a separate meeting for interpretations

5 Procedure of the BWG The BWG may consider relevant proposals to change the NAIC statement blanks and instructions at any interim or national meeting as scheduled by the Working Group All proposals shall be stated concisely using a prescribed form, which is available on the NAIC website The BWG meets four times per year: (3) meetings held during the NAIC Spring, Summer and Fall National Meeting, and one by conference call in June of each year Other conference calls may be held as deemed necessary by the Working Group

6 Procedure of the BWG Changes that impact a quarterly statement must be effective at the beginning of the year, and must be adopted no later than the NAIC Summer National Meeting (i.e., changes effective 1Q 2016 must be adopted no later than the 2015 Summer National Meeting) Changes that only affect the annual statement must be adopted no later than June in the year of the change (i.e., 2016 annual changes must be adopted no later than June 2016) Other changes not subject to the noted time guidelines are limited to: a) disclosures required in the current year by the Accounting Practices and Procedures Manual; and b) items providing instructional clarification of current reporting requirements

Procedure of the BWG These proposals will modify the instructions only, including Notes to Financial Statements, and will not be data captured If the proposal is to add a Note to Financial Statements

7 Procedure of the BWG These proposals will modify the instructions only, including Notes to Financial Statements, and will not be data captured If the proposal is to add a Note to Financial Statements that should be data captured, the Note may be added to the instructions in the current year and data captured the first subsequent year-end A summary of the procedures, and modifications effective for the 2015 annual statement may be viewed via the following link:

8 BWG Update Summary of Changes effective for 2015 Annual Statement Ref. # , Change the reference for Line 11 of the General Interrogatories, Part 2 from minimum net worth to statutory minimum capital and surplus Ref. # , Modify the instructions and illustrations for Note 32 and 34 to correct inconsistencies in the use of market value and fair value in the instructions to the notes Ref. # , Remove form lists from the barcode instructions in the appendix Ref. # , Supplemental Health Care Exhibit Ref. # , Property Instructions Lines of Business Definitions Ref. # , 1 and 2 Year Loss Development in the Title Insurance 5 Yr Historical Data Exhibit (Title Only) Ref. # , Underwriting and Investment Expense Exhibit, Part 2B (Health Only)

9 BWG Update Summary of Changes effective for 2015 Annual Statement Ref. # , Add Crosschecks to Note 11B (FHLB) Ref. # , Schedule A, Part 1 to reflect the reporting of real estate owned by an LLC (SSAP No. 40R) Ref. # , Instructions for Cash Flow (SSAP No. 69) Ref. # , New Disclosure for Note 5A, Mortgage Loans (SSAP No. 37) Ref. # , Instructions for Note 12, Retirement Plans (SSAP No. 11) Ref. # , Instruction for Note 1, Significant Accounting Policies (SSAP No. 1) Ref. # , Instruction for Note 5G additional disclosure for Low Income Housing Tax Credit (SSAP No. 93) Ref. # , New Supplement to collect data on Cybersecurity Insurance Ref. # , Instructions for Schedule D. Add new electronic columns for Issuer, Issue, SEDOL Code, ISIN Identification and Capital Structure Code

10 BWG Update Summary of Changes effective for 2015 Annual Statement Ref. # , ACA Assessment Subsequent Event Note and Crosscheck to 5 Year Historical (SSAP No. 106) Ref. # , Modify the line description for line 15.3, contracts subject to redetermination Ref. # , Split the Supplemental XXX/AXXX Reinsurance Exhibit into two parts: Grandfathered or Special Exemption, and Non-Grandfathered Ref. # , Reference to the Cautionary Statement to be posted to the Blanks website in the header of the Supplemental Health Care Exhibit Ref. # , Instruction to the Supplemental Health Care Exhibit to Clarify the Reporting for Retrospectively Rated Contracts Ref. # , Add New Table to the Supplemental Health Care Exhibit, Part 1 to Capture 3Rs: Receivable, Payable and Receipts by State for Individual and Small Group Plans

11 BWG Update Summary of Changes effective for 1 Q 2016/Annual 2016 Ref. # , Add instruction to include the ACA Section 9010 Fee as a Write-in for Special Surplus (SSAP No. 106) (1Q 2016) Ref. # , Modify the question in the Supplemental Exhibits and Schedules Interrogatories on filing the Communication of Internal Control Related Matters Noted in an Audit to reference Regulator only (i.e., nonpublic filing to be filed electronically with NAIC only) (Annual 2016)

12 2015 Fall National NAIC Meeting Ref. # , New supplement with details of reinsurers aggregated on Schedule F, Part 3 (Previously Deferred) Ref. # , Consider new item for Schedule D to remove the reference to non-rated and provide instruction for footnote d of Part 1A and footnote b of Part 1B Ref. # , Consider a new supplement with details of reinsurers aggregated on Schedule F, Part 3 Ref. # , Discuss the Status of Terrorism Supplement Proposal

13 Questions and Discussion Questions/Discussion

14 Peter Austin Peter is a Second Vice President, Accounting Policy, Corporate Finance with The Travelers Companies, Inc. Prior to joining Travelers in 2006, Peter worked for former Travelers affiliate Travelers Life & Annuity, the State of Connecticut Insurance Department, and Ernst & Young. Peter has a B.S. in Accounting from the University of Connecticut, and a M.S. in Accounting from the University of Hartford. Peter is a Certified Public Accountant and a Certified Financial Examiner.

NAIC Fall Meeting Update

Northeastern Chapter IASA Annual Regional Conference NAIC Fall Meeting Update Newport, RI November 20, 2014 D. Keith Bell, Senior Vice President, Accounting Policy The Travelers Companies, Inc. Peter Austin,