Blanks (E) Working Group

Editorial Revisions to the Blanks and Instructions

(adopted 8/9/2016 through 11/9/2017)

 

Statement Type:

F = Fraternal; H = Health; L = Life; P/C = Property/Casualty; SA = Separate Accounts; T = Title


Effective

Table Name

Description

Date Adopted

Statement Type

Filing Type

Annual / Quarterly

Annual 2017

Schedule O Parts 3 and 4

CHANGE TO BLANK

Renumber lines from 2-6 to 1-5 on all sections.

11/09/2017

L

Annual

Annual 2017

Supplemental Exhibits and Schedules Interrogatories

CHANGE TO BLANK

Move question 40 from the March Section to the April Section as Question 41. Renumber question 41 to 40.

Modify the wording of the question as shown below:

Will the confidential Regulatory Asset Adequacy Issues Summary (RAAIS) required by the Valuation Manual Actuarial Opinion and Memorandum Regulation (Model 822), Section 7A(5), be filed with the state of domicile by March 15 April 1?

11/09/2017

L

Annual

Annual 2017

Supplemental Exhibits and Schedules Interrogatories

CHANGE TO BLANK

Move question 35 from the March Section to the April Section as Question 36. Renumber question 36 to 35.

Modify the wording of the question as shown below:

Will the confidential Regulatory Asset Adequacy Issues Summary (RAAIS) required by the Valuation Manual Actuarial Opinion and Memorandum Regulation (Model 822), Section 7A(5), be filed with the state of domicile by March 15 April 1?

11/09/2017

F

Annual

Annual 2017

Schedule D, Part 2, Section 1

CHANGE TO INSTRUCTIONS:
Add code to preferred stock designation matrix for P5*GI, P5*AGI, P5*LGI, P5*UGI, P5*VGI, RP5*GI, RP5*AGI, RP5*LGI, RP5*UGI and RP5*VGI for preferred stocks in Column 20.

11/09/2017

F, H, L, P, T

Annual

Quarterly 2018

Schedule D, Part 3

CHANGE TO INSTRUCTIONS:
Add code to preferred stock designation matrix for P5*GI, P5*AGI, P5*LGI, P5*UGI, P5*VGI, RP5*GI, RP5*AGI, RP5*LGI, RP5*UGI and RP5*VGI for preferred stock in Column 10.

11/09/2017

F, L, H, P, T

Quarterly

Quarterly 2018

Schedule D, Part 4

CHANGE TO INSTRUCTIONS:
Add code to preferred stock designation matrix for P5*GI, P5*AGI, P5*LGI, P5*UGI, P5*VGI, RP5*GI, RP5*AGI, RP5*LGI, RP5*UGI and RP5*VGI for preferred stock in Column 22.

11/09/2017

F, L, H, P, T

Quarterly

Annual 2018

Schedule D, Part 6, Section 1

CHANGE TO INSTRUCTIONS:

Modify the instructions for Columns 6 and 7 to reflect the guidance moving from the Purposes and Procedures Manual of the NAIC Investment Analysis Office to SSAP No. 97–Subsidiary, Controlled, and Affiliated Entities

Column 6 – NAIC Valuation Method

Include the NAIC valuation method as detailed in Part Five, Section 2 of the SSAP No. 97–Subsidiary, Controlled, and Affiliated Entities Purposes and Procedures Manual of the NAIC Investment Analysis Office.

Use the following codes to indicate a specific valuation method:

CODE Valuation Method
8a2ciA1 Market Value
8bi2ciB1 Investment in U.S. Insurance Company SCAs
8bii 2ciB2 Investments in non-insurance SCA Entities Statutory Basis
8biii 2ciB3 Investments in non-insurance SCA Entities GAAP Basis
8biv2ciB4 Investments in Foreign Insurance Company SCA Entities
2ciB5 Investments in Foreign non-insurance SCA Entities
2ciB6 Investments in Preferred Stock of an SCA

Any NAIC Valuation Method which has not been approved by the filing of a SUB 1 or SUB 2 form with the NAIC SCA Group and which is entered by the reporting entity under its own judgment shall have the letter “Z” appended to the method designation.

Column 7 –

Do Insurer’s Assets Include Intangible Assets Connected with Holding of Such Company’s Stock?

State whether the assets shown by the reporting entity in this statement include, through the carrying value of stock of the SCA Company valued under the SSAP No. 97—Subsidiary, Controlled, and Affiliated Entities Purposes and Procedures Manual of the NAIC Investment Analysis Office, intangible assets arising out of the purchase of such stock by the reporting entity or the purchase by the SCA Company of the stock of a lower-tier company controlled by the SCA Company. For purposes of this question, intangible assets at purchase shall be defined as the excess of the purchase price over the tangible net worth (total assets less intangible assets and total liabilities) represented by such shares as recorded, immediately prior to the date of purchase, on the books of the company whose stock was purchased.

11/09/2017

F, H, L, P, T

Annual

Annual 2017

Supplemental Term and Universal Life Insurance Reinsurance Exhibit – Part 3

CHANGE TO INSTRUCTIONS

Add clarification on Cession ID used.

For each Cession ID, the information regarding the Name of the Company, the NAIC Company Code, the ID Number and the inception date or prior year annual statement date should match what was reported for those columns in Part 2.  Note: Only the numeric portion of the Cession ID is used.  The identifiers (“A” and “B”) provided for Part 2B are aggregated together for the purpose of this Exhibit.

08/06/2017

L, F

Annual

Annual 2017

Supplemental Term and Universal Life Insurance Reinsurance Exhibit – Part 4

CHANGE TO INSTRUCTIONS

Add clarification on Cession ID used.

For each Cession ID, the information regarding the Name of the Company, the NAIC Company Code, the ID Number and the inception date or prior year annual statement date should match what was reported for those columns in Part 2.  Note: Only the numeric portion of the Cession ID is used.  The identifiers (“A” and “B”) provided for Part 2B are aggregated together for the purpose of this Exhibit.

08/06/2017

L, F

Annual

Annual 2017

Variable Annuities Supplement – Parts 1 and 2

CHANGE TO INSTRUCTIONS

Add crosscheck for Line 3 Total Net or Reinsurance.

Line 3   –    Total Net of Reinsurance

Line 3 Total Net of Reinsurance should equal the Subtotal Line for Column 10 minus the sum of Line 1 Reserve Credit from Affiliated Captive Reinsurance and Line 2 Reserve Credit from Other Reinsurance.

08/06/2017

L, F

Annual

Annual 2017

Cybersecurity Part 1 Interrogatories

CHANGE TO BLANK

Since line 3 refers to questions 1 and 2, added N/A as choice.

06/14/2017

P

Annual

Annual 2017

Asset Valuation Reserve— Equity and Other Invested Asset Component

CHANGE TO INSTRUCTIONS

Update the instructions as shown below to add NAIC 2 reference:

Lines 30 through 35    –

Other Invested Assets with Underlying Characteristics of Preferred Stocks

Report the book/adjusted carrying value of all Schedule BA assets owned where the characteristics of the underlying investment are similar to preferred stocks (the portion of Lines 1199999, 1299999, 1399999 and 1499999 that applies to fixed income instruments similar to preferred stocks) that have been valued according to the Purposes and Procedures Manual of the NAIC Investment Analysis Office and certain surplus debentures (included in Lines 2399999 and 2499999) and capital notes (included in Lines 2999999 and 3099999) in Columns 1 and 4. Follow the SVO guidelines and categorize these assets into classes P1 through P6 or RP1 through RP6 as directed by the NAIC Securities Valuation Office instructions.  For surplus debentures and capital notes, use the Credit Rating Provider (CRP) rating to categorize these assets as if the SVO had assigned a NAIC Designation of 1 through 6. ONLY those surplus debentures and capital notes with an CRP rating equivalent to the a NAIC 1 or NAIC 2 designation may be included in this section (Lines 30 and 31). Multiply the amount in Column 4 for each designation by the reserve factors provided in Columns 5, 7 and 9 and report the products by designation in Columns 6, 8 and 10, respectively.

Include:

Any investments believed by the reporting entity to fit the category of "Fixed or Variable Interest Rate Investments that Have the Underlying Characteristics of a Bond, Mortgage Loan or Other Fixed Income Instrument," or "Joint Ventures or Partnership Interests for Which the Primary Underlying Investments are Considered to Be Fixed Income Instruments" which qualify for Filing Exemption or have been reviewed by the SVO.

Surplus debentures and capital notes that possess a CRP rating equivalent to the a NAIC 1 or NAIC 2 designation.

 

Exclude:

Any investments believed by the reporting entity to possess the underlying characteristics of a preferred stock, but for which the Securities Valuation Office (SVO) has not yet affirmed that the specific BA asset (identified by CUSIP) fits in this category (as identified in the Valuation of Securities product). Until affirmed by the SVO, these investments are to be reported in Line 83 (Other Invested Assets – Schedule BA) of this schedule.

All surplus debentures and capital notes that do NOT possess an CRP rating equivalent to the a NAIC 1 or NAIC 2 designation. These surplus debentures are to be reported in Line 83 (Other Invested Assets – Schedule BA) of this schedule.

06/14/2017

L, F

Annual

Annual 2017

Asset Valuation Reserve – Equity and Other Invested Asset Component

CHANGE TO INSTRUCTIONS

Update the instructions as shown below to add NAIC 2 reference

Line 83   –    Other Invested Assets – Schedule BA

Report the book/adjusted carrying value of all other Schedule BA investments owned which cannot be classified into one of the above categories (Lines 0199999, 0299999, 0399999, 0499999, 0599999, 0699999, 2199999, 2299999, 2399999, 2499999, 2999999, 3099999, 4299999 and 4399999) in Column 1 and any encumbrances on these assets in Column 3. Schedule DL, Part 1 investments reported on Line 8899999 would be included in this total if not classified in one of the above categories. Collateral loans (Lines 2599999 and 2699999) have been intentionally excluded from this total. For surplus debentures and capital notes, the amount to report in Column 1 is to be calculated based upon the accounting prescribed in SSAP No. 41—Surplus Notes. Report the sum of Columns 1 and 3 in Column 4. Column 4 may not be less than zero. Note that ALL surplus debentures and capital notes should be included here in Line 83, EXCEPT those with a CRP rating equivalent to the a NAIC 1 or NAIC 2 designation (which are reported in Lines 30 and 31 of this schedule). Multiply the amount in Column 4 by the reserve factors provided in Columns 5, 7 and 9 and report the products in Columns 6, 8 and 10, respectively.

Include:

Any investments believed by the reporting entity to fit the category of "Fixed or Variable Interest Rate Investments that Have the Underlying Characteristics of a Bond, Mortgage Loan or Other Fixed Income Instrument," or "Joint Ventures or Partnership Interests for which the Primary Underlying Investments are considered to be Fixed Income Instruments" but which do not qualify for Filing Exemption and have not been reviewed by the SVO. In addition, include those investments that have been reviewed by the SVO and were determined to have the underlying characteristics of "Other" instruments (joint venture, partnership and LLC investments) or to be "Any Other Class of Assets".

Exclude:

All surplus debentures and capital notes that possess a CRP rating equivalent to the a NAIC 1 or NAIC 2 designation. These surplus debentures are to be reported on in Lines 30 and 31 (Other Invested Assets with Underlying Characteristics of Preferred Stocks) of this schedule.

06/14/2017

L, F

Annual

Quarterly 2017

Notes to Financial Statement

CHANGE TO INSTRUCTIONS

Modify the wording for Lines 2, 3, 6 and 7 of the illustration for Note 1A as shown below

NET INCOME

(1) ABC Company state basis (Page 4, Line 32, Columns 2 & 4)
(2) State Prescribed Practices that is an increase/(decrease) from NAIC SAP:
(3) State Permitted Practices that is an increase/(decrease) from NAIC SAP:
(4) NAIC SAP (1-2-3=4)

SURPLUS

(5) ABC Company state basis (Page 3, Line 33, Columns 3 & 4)
(6) State Prescribed Practices that is an increase/(decrease) from NAIC SAP:
(7) State Permitted Practices that is an increase/(decrease) from NAIC SAP:
(8) NAIC SAP (5-6-7=8)

04/08/2017

F, H, L, P/C, T

Annual / Quarterly

Quarterly 2017

Assets

CHANGE TO INSTRUCTIONS

Modify the 4th paragraph of the include statement for Line 24 as shown below.

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.

04/08/2017

F, H, L, P/C, T

Annual / Quarterly

Annual 2017

Supplemental Exhibits and Schedules

CHANGE TO BLANK

Move question for new variable annuities supplement to end of second April section — Line 46-F/Line 52-L

04/08/2017

L, F

Annual

Annual 2017

Notes to Financial Statement

CHANGE TO INSTRUCTIONS

Modify the line description for the Line 5H(4)a in the illustration as shown below.

(4) Collateral Received and Reflected as Assets Within the Reporting Entity’s Financial Statements

Collateral Assets

a. Cash, Cash Equivalents and Short-Term Investments

b. Schedule D, Part 1

c. Schedule D, Part 2, Section 1

d. Schedule D, Part 2, Section 2

e. Schedule B

f. Schedule A

g. Schedule BA, Part 1

h. Schedule DL, Part 1

i. Other

j. Total Collateral Assets (a+b+c+d+e+f+g+h+i)

04/08/2017

F, H, L, P/C, T

Annual

Annual 2017

AVR Equity and Other Invested Asset Component — Basic Contribution, Reserve Objective and Maximum Reserve Calculations

CHANGE TO INSTRUCTIONS

Modify line number reference as shown below.

Line 86 — Total Other Invested Assets — Schedules BA & DA

The Columns 6, 8 and 10 amounts must be combined with Columns 6, 8 and 10, Line 3021 amounts and reported on the Asset Valuation Reserve Page, Column 5, Lines 7, 10 and 9 respectively.

04/08/2017

L

Annual

Annual 2017

AVR Equity and Other Invested Asset Component — Basic Contribution, Reserve Objective and Maximum Reserve Calculations

CHANGE TO INSTRUCTIONS

Modify line number reference as shown below.

Line 86 — Total Other Invested Assets — Schedules BA & DA

The Columns 6, 8 and 10 amounts must be combined with Columns 6, 8 and 10, Line 2221 amounts and reported on the Asset Valuation Reserve Page, Column 5, Lines 7, 10 and 9 respectively.

04/08/2017

F

Annual

Annual 2017

Appendix — Country Code List

CHANGE TO INSTRUCTIONS

Modify the 1st paragraph as shown below:

This is a comprehensive list of ISO Alpha 3 country abbreviations. Please note the following exception. Use NAT for Native American Tribes.

04/08/2017

F, H, L, P/C, T

Annual

Annual 2016

Schedule D, Part 6,
Section 2

CHANGE TO BLANK:
Updated reference in column 4 due to new column added in Schedule D, Part 6, Section 1.

12/15/2016

F, H, L, P, T

Annual

Annual 2016

Life Health Annuity Guaranty

CHANGE TO BLANK:
On Line 2.2, add the word “other” after “Any” so it agrees with the Health form.

12/15/2016

L

Annual

Annual 2016

Schedule D, Part 6,
Section 2

CHANGE TO BLANK:
Updated Lines 10.5, 11.5, 12.5 and 13.5 to read “SVO Identified Funds,” not “SVO Designated Securities” to coincide with new Line 9.

12/15/2016

F, H, L, P, T

Annual

Quarterly 2017

General Interrogatory,
Part 1, #17

CHANGE TO BLANK:
References in Lines 17.5097, 175098 and 17.6 should be to 17.5, not 28.05.

Line 17.6: Reverse order of columns 1 and 2 and make sure columns are numbered 1-5.

12/15/2016

F, H, L, P, T

Quarterly

Annual 2017

General Interrogatories

CHANGE TO BLANK:
As a result of adoption of the deletion of paragraph 31.c.i. of SSAP No. 56—Separate Accounts, Line 2.2 will be deleted and Lines 2.3 through 2.7 will be renumbered.

12/15/2016

SA

Annual

Annual 2017

Schedule D, Part 1

CHANGE TO INSTRUCTIONS:
Add code to bond designation matrix for 5*GI for bonds in Column 6.

12/15/2016

F, H, L, P, T

Annual

Annual 2017

Statement of Revenue and Expenses

CHANGE TO INSTRUCTIONS:
Make the following change to Line 20 as the change referenced happened over 10 years ago.

Line 20 — Claims Adjustment Expenses, Including

$_____ Cost Containment Expenses

All expenses incurred in connection with the recording, adjustment and settlement of claims. This includes the total of the expense classification “Other Claim Adjustment Expenses” and all “Cost Containment Expenses” in the Underwriting and Investment Exhibit, Part 3, Analysis of Expenses.

Cost Containment Expenses and Other Claim Adjustment Expenses have been defined in
SSAP No. 55—Unpaid Claims, Losses and Loss Adjustment Expenses. Refer to SSAP No. 55 for accounting guidance.

Prior to 2004, companies might have classified certain expenses, such as network access fees and consumer education costs, within General Administrative Expenses. In accordance with SSAP No. 55, these amounts are now considered
Cost Containment Expenses and should be classified as such.

The inset amount should equal Column 1, Line 26, Underwriting and Investment Exhibit Part 3.

12/15/2016

H

Annual

Annual 2017

Underwriting and Investment Exhibit – Part 3

CHANGE TO INSTRUCTIONS:
Make the following change to the first page of the U&I Part 3 instructions.

Other costs such as network development costs, provider contracting costs and other similarly related costs should be allocated to Columns 1 through 3 as appropriate, in accordance with SSAP No. 55.

Prior to 2004, companies might have classified certain expenses, such as network access fees and consumer education costs, within General Administrative Expenses. In accordance with SSAP No. 55, these amounts are now considered Cost Containment Expenses and should be classified as such.

A reporting entity that pays any affiliated entity (including a managing general agent) for the management, administration, or service of all or part of its business or operations shall allocate these costs to the appropriate expense classification item (salaries, rent, postage, etc.) as if these costs had been borne directly by the company. Do not report management, administration, or similar fees as one-line expenses. The reporting entity may estimate these expense allocations based on a formula or other reasonable basis.

12/15/2016

H

Annual

Annual 2017

Exhibit of Life Insurance

CHANGE TO BLANK:
Move footnote (a) to header to be consistent with other schedules. ($000 Omitted for life insurance amounts.) This includes formatting all references within blank to include dollar sign and mixed caps.

12/15/2016

F, H, L

Annual

Annual 2017

EOLI pages 26-27

CHANGE TO BLANK:
Update footnote regarding Annual Audited statements to eliminate paragraph reference and general reference.

12/15/2016

F, L

Annual

Quarterly 2018

Schedule D, Part 3

CHANGE TO INSTRUCTIONS:
Add code to bond designation matrix for 5*GI for bonds in Column 10.

12/15/2016

F, L, H, P, T

Quarterly

Quarterly 2018

Schedule D, Part 4

CHANGE TO INSTRUCTIONS:
Add code to bond designation matrix for 5*GI for bonds in Column 22.

12/15/2016

F, L, H, P, T

Quarterly

Annual 2016

Supplemental XXX/AXXX Reinsurance Exhibit

Part 2B – Transactions Subject to Part 2 Disclosure

(Non-Grandfathered)

CHANGE TO INSTRUCTIONS:
Original modifications to 2015-18BWG were made to Column 13 instead of Column 12. Make the following changes below to state the Column 12 instructions as intended and restore the original instruction for Column 13.

Column 12 — Statutory Reserve Credit Taken

State the dollar amount of the statutory reserve credit taken by the reporting entity for the XXX and AXXX products included in the ceded reinsurance contract as of the current annual statement date. For reserves subject to modified coinsurance, report the modified coinsurance reserve.

State the dollar amount of the reserve credit taken by the reporting entity as of the current annual statement date.

Column 13 — Required Level of Primary Security

State the Required Level of Primary Security applicable to the statutory policy reserves as of the current annual statement date.

State the dollar amount of the statutory reserve credit taken by the reporting entity for the XXX and AXXX products included in the ceded reinsurance contract as of the current annual statement date. For reserves subject to modified coinsurance, report the modified coinsurance reserve.

8/9/2016

L, F

Annual

Annual 2016

Schedule F – Part 3, Part 5 and Part 6 Section 1

CHANGE TO INSTRUCTIONS:
Make the following changes to the secure code instructions to reflect changed language used in the RBC instructions.

Utilize the table below and report a secure rating code of 1 through 6 (where 6 represented vulnerable 6 or unrated) or 7 (for unrated authorized reinsurers). The maximum equivalent rating category that may be assigned will correspond to the lowest a current financial strength rating received from an approved rating agency as outlined in the table below. Ratings shall be based on interactive communication between the rating agency and the assuming insurer and shall not be based solely on publicly available information. If the reinsurer is unauthorized and does not have at least one financial strength rating, it should be assigned the “Vulnerable 6 or Unrated Unauthorized Reinsurers” equivalent rating. If the reinsurer is authorized and does not have at least one financial strength rating, it should be assigned the “Unrated Authorized Reinsurers” equivalent rating. Amounts recoverable from unrated voluntary pools should be assigned the “Secure 3” equivalent rating. An authorized association including incorporated and individual unincorporated underwriters or a member thereof may utilize the lowest financial strength group rating received from an approved rating agency.

8/9/2016

P, H

Annual

Annual 2016

Schedule F, Part 3, Part 5 and Part 6 Section 1

CHANGE TO INSTRUCTIONS AND BLANK:
On June 16, 2016, the Blanks (E) Working Group adopted revisions to Schedule F, Part 3, Part 5 and Part 6 (Ref #2016-08BWG) to add a new electronic only column to capture the “Secure Code” of reinsurers subject to reinsurance arrangements with the reporting entity. Subsequent to the adoption of these revisions, NAIC staff received questions regarding the use of the term “Secure” in the electronic only columns in comparison to its use in the Credit for Reinsurance Model Law (#785) for Certified Reinsurers. It shall be noted, that the “Secure Code” reported in these electronic only columns has no relationship to the “Secure Rating” assigned by state insurance departments for Certified Reinsurers, as the “Secure Rating” is strictly used to determine the percentage of collateral that is required under each reinsurance arrangement. Therefore, for purposes of completing these electronic only columns on Schedule F, reporting entities shall follow the annual statement instructions in determining the “Secure Code” to be reported, and not utilize any “Secure Rating” (if applicable) assigned by a state insurance department for Certified Reinsurers.

Make the changes below:

Change the column description for Column 20 (Schedule F, Part 3), Column 19 (Schedule F, Part 5) and Column 22 (Schedule F, Part 5) Part 6 Section 1 from “Secure Code” to “Reinsurer Designation Equivalent”.

Change the wording “valid secure codes” to just “valid codes”.

Change the reference to “secure rating” to “reinsurer designation equivalent”

Change the wording “Secure Cod 3” to “reinsurer designation equivalent code of 3”.

8/9/2016

P, H

Annual

Annual 2016

General Interrogatories, Part 1

CHANGE TO BLANK:
From proposal 2016-22, reverse the first two columns in line 28.06 to agree with current specs order. Update the line numbers 25.051 and 25.052 to 28.0597 and 28.0598.

8/9/2016

F, L, H, P, T

Annual