Statutory Accounting Principles Working Group
Financial Condition (E) Committee
Accounting Practices and Procedures Task Force

The Statutory Accounting Principles Working Group has the responsibility of developing and proposing new Statements of Statutory Accounting principles (SSAPs). The SSAPs represent the top level of requirements in the statutory hierarchy of accounting requirements and are included in the NAIC Accounting Practices and Procedures Manual (AP&P Manual). New SSAPs will be developed periodically that: 1) address issues not covered by existing Statutory Accounting Principles (SAP) guidance; 2) amend existing SSAPs; or 3) supersede existing SSAPs.

The first step in developing new SSAPs will usually be the drafting of an Issue Paper (IP) containing summary conclusion, discussion and relevant literature sections. Public comment will be solicited on the IPs, and at least one public hearing will be held on an IP before it is converted to a SSAP. The SAPWG relies upon NAIC staff to perform research and drafting on new SSAPs and may enlist the assistance of interested parties with requisite technical expertise as needed.

Items for consideration by the SAPWG can be submitted via a Form A to NAIC staff support.

2012 Charges

Maintain codified statutory accounting principles by providing periodic updates to the guidance that address new statutory issues and new GAAP pronouncements as they develop.

At the discretion of the chair, comment on exposed GAAP pronouncements affecting financial accounting and reporting.

Report its findings relative to these developing issues to the Accounting Practices and Procedures (E) Task Force.

When a class of securities is being reviewed by the Invested Assets (E) Working Group, the chair of the Statutory Accounting Principles (E) Working Group, or his or her representative, will be deemed a member of the Invested Asset (E) Working Group of the Valuation of Securities (E) Task Force. The chair, or his/her representative, is charged with contributing the applicable perspective and expertise of the regulatory group to the development of NAIC regulatory guidance for the security under review by the Invested Asset (E) Working Group.

Provide comments on issues related to evaluating and or implementing to International Financial Reporting Standards (IFRS) for possible U.S. statutory accounting use and provide input on the solvency modernization project as it relates to accounting and reporting issues.

Exposure Drafts Outstanding
Statutory Accounting Principles Working Group
Last Updated December 19, 2011

Please forward comment letters to jgann@naic.org, jtittle@naic.org,and rmarcotte@naic.org.

The following exposed items have a comment deadline of Jan. 6, 2012:

Ref No.	Issue Paper/ SSAP No./ Appendix	Title	Description
COMMENTS ON THE FOLLOWING ARE DUE JANUARY 6, 2012:
2009-14	New SSAP	FAS 166, Accounting for Transfers of Financial Assets, an Amendment of FAS 140.	Exposed new SSAP proposed to adopt, with modification, FAS 166 and supersede SSAP No. 91R. (Note: Proposed revisions to INTs and SSAPs as a result from adopting this new SSAP are included in appendices to the new SSAP. These are not planned to be included in the final adopted SSAP, but incorporated into Issue Paper No. 141 for historical reference.) Deadline: Jan. 6, 2012
2011-19	SSAP No. 27 SSAP No. 86	ASU 2010-11: Derivatives and Hedging – Scope Exception Related to Embedded Credit Derivatives	Exposed nonsubstantive revisions to provide guidance for embedded credit derivatives that expose the holder to the possibility of making future payments. Also exposed revisions to ensure that embedded derivatives are included in the disclosures of financial instruments with off-balance sheet risk. Deadline: Jan. 6, 2012.
2011-22	Issue Paper No. 99	ASU 2010-20: Receivables, Disclosures About the Credit Quality of Financing Receivables and the Allowance of Credit Losses ASU 2011-01: Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in ASU 2010-20.	Exposed nonsubstantive revisions to reject ASU 2011-20 as not applicable to statutory accounting. (See #2011-25 for financing receivable disclosures for troubled debt restructurings deferred in ASU 2011-01.) Deadline: Jan. 6, 2012
2011-25	SSAP No. 36	ASU 2011-02: Receivables, A Creditor’s Determination of Whether a Restructuring is a Troubled Debt Restructuring	Exposed nonsubstantive revisions to adopt ASU 2011-02. Revisions also propose rejection of the troubled debt restructuring disclosures from ASU 2010-20 (deferred in ASU 2011-01) but proposes additional disclosures that pertain to all troubled debt restructurings. Deadline: Jan. 6, 2012
2011-38	SSAP No. 35R	ASU 2011-06: Fees Paid by the Federal Government by Health Insurers	Exposed nonsubstantive revisions to reject ASU 2011-06 and to prescribe statutory accounting provisions for the annual fee mandated by the PPACA addressed by ASU 2011-06. Deadline: Jan. 6, 2012.
2011-45	SSAP No. 62R	Impact of Loss Portfolio Transfer on Provision of Reinsurance	Exposed revisions proposed by the Sponsor, amended to include reference to SSAP No. 5R. The Working Group exposed this item noting that they are not taking a position on this proposal, but to receive additional information. Deadline: Jan. 6, 2012

*Please forward all comment letters to jgann@naic.org, jtittle@naic.org and rmarcotte@naic.org.

A full list of NAIC conference calls & interim meetings is available on the NAIC Conference Call Calendar.

There are no advance materials at this time.

Financial Summit: 2012 Leadership Initiatives

Statutory Accounting Principles 101
Available Year-Round

Residential Mortgage Backed Securities (RMBS) Initiative Web Site

Accounting Practices and Procedures Manual Updates

SSAP No. 43R flowchart

SAPWG Maintenance Agenda Submission Form (Form A)
See Policy Statement on SAPWG Maintenance Agenda Process for description and instruction. After completion of the Form A, please send to statacct@naic.org for NAIC staff review. NAIC staff will send a confirmation of receipt. In order for NAIC staff to place the Form A on the Agenda, the Form A must be received no later than the comment deadline.

Maintenance Agenda
November 2011

SSAP No. 97 Market Value Discount Table

SAP to Annual Statement Disclosure Checklist Updated for 2011 Annual Statements

Please note, in an effort to go green, the spreadsheets are spaced to view the entire width on a computer screen, approximately 84%. At other percentages or if printing, some detail may be lost.

Policy Statements
See Appendix F – Policy Statements of the Accounting Practices and Procedures Manual for a complete listing.

Minutes for the four most recent NAIC National Meetings are available free for meeting attendees and members. Members may access minutes via StateNet. If you do not know your User ID or password, please contact the NAIC Help Desk.

Accounting Practices and Procedures Manual

Annual and Quarterly Statement Instructions

States' Prescribed Differences from NAIC Statutory Accounting Principles

Media queries should be directed to the NAIC Communications Division at 816-783-8909 or news@naic.org.

Julie Gann
Accounting Policy Advisor
Phone: 816-783-8966
Fax: 816-460-7821

John Tittle
Manager, Accounting Policy
Phone: 816-783-8120
Fax: 816-460-7612

Robin Marcotte
Accounting and Reporting Manager
Phone: 816-783-8124
Fax: 816-460-7571

Please see the current Committee List for a complete list of committee members.

Statutory Accounting Principles Working Group Financial Condition (E) Committee Accounting Practices and Procedures Task Force

Statutory Accounting Principles Working Group
Financial Condition (E) Committee
Accounting Practices and Procedures Task Force