Committees & Activities

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

The Statutory Accounting Principles (E) Working Group is responsible for developing and adopting substantive and nonsubstantive revisions to the Statements of Statutory Accounting Principles (SSAPs). Statutory accounting principles provide the basis for insurers to prepare financial statements for financial regulation purposes, and SSAPs are considered level 1 (highest authority) in the statutory accounting hierarchy.

Substantive statutory accounting revisions introduce original or modified accounting principles. Substantive revisions can be reflected in an existing SSAP or a new SSAP. Nonsubstantive statutory accounting revisions are characterized as language clarifications that do not modify the original intent of an SSAP.

Items for consideration by the Working Group can be submitted via a SAPWG Maintenance Agenda Submission Form (Form A) to the NAIC staff support listed on this web page.

The Emerging Accounting Issues (E) Working Group is responsible for responding to questions on the application, interpretation and clarification of statutory accounting principles. Additional information on this Working Group can be obtained via the following link:

2014 Charges

  • Maintain codified statutory accounting principles by providing periodic updates to the guidance that address new statutory issues and new U.S. generally accepted accounting principles (GAAP) pronouncements as they develop.—Essential and Ongoing
  • At the discretion of the chair, comment on exposed GAAP pronouncements affecting financial accounting and reporting.—Essential
  • Report its findings relative to these developing issues to the Accounting Practices and Procedures (E) Task Force.—Essential
  • Contribute the perspective and expertise of the Working Group via the chair, or his/her representative, to the development of NAIC regulatory guidance for any security under review by the Invested Assets (E) Working Group of the Valuation of Securities (E) Task Force. (Upon notice that a class of securities has been placed under regulatory review, the chair of Statutory Accounting Principles (E) Working Group, or his/her representative, will be deemed a member of the Invested Assets (E) Working Group.)—Essential
  • 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.—Essential and Ongoing
  • Adjust the Accounting Practices and Procedures Manual as needed to reflect the Valuation Manual requirements.—Essential
  • Receive periodic reports on changes to the Valuation Manual that require coordination with the Accounting Practices and Procedures Manual. Coordinate as needed, in accordance with the established maintenance process.—Essential and Ongoing
  • Coordinate with the Life Actuarial (A) Task Force on changes to the Accounting Practices and Procedures Manual related to the Valuation Manual VM-A Requirements and VM-C Actuarial Guidelines.—Essential and Ongoing
  • Coordinate with the Life Actuarial (A) Task Force on development of an accounting smoothing mechanism to address reserve volatility.—Essential

Exposure Drafts Outstanding
Statutory Accounting Principles Working Group
Last Updated April 7, 2014

The deadline for comments on exposed items is May 8, 2014. The deadline for submission of new items is July 3, 2014.

Please address comment letters to Dale Bruggeman, Chair of the Statutory Accounting Principles (E) Working Group, and direct to jgann@naic.org and rmarcotte@naic.org.

Ref No.

Issue Paper/ SSAP No./ Appendix

Title

Description

EXPOSURES WITH COMMENT DEADLINE OF May 8, 2014
2013-28 SSAP No. 35R Risk Sharing Provisions of the Affordable Care Act Nonsubstantive disclosures regarding the risk sharing provisions of the affordable care act programs (risk adjustment, reinsurance and risk corridors).
2014-01 New SSAP
&
Issue Paper No. 148
Affordable Care Act (ACA) Assessments Substantive revisions propose to move the Affordable Care Act (ACA) Section 9010 fee guidance from SSAP No. 35 R—Guaranty Fund and Other Assessments (SSAP No. 35R) into a separate SSAP.
2014-02 SSAP No. 26
&
SSAP No. 43R
Disclosure for Structured Notes

Nonsubstantive revisions to SSAP No. 26 to9 incorporate a new “structured note” disclosure.

Nonsubstantive revisions to SSAP No. 43R to clarify the guidance in that SSAP pertains to structured securities, not structured notes.

2014-03 Issue Paper No. 99 ASU 2013-12: Definition of a Public Business Entity, An Addition to the Master Glossary Nonsubstantive exposure rejects ASU 2013-12: Definition of a Public Business Entity, An Addition to the Master Glossary as not applicable to statutory accounting.
2014-04 SSAP No. 16R Inconsistent Audit Requirement in SSAP No. 16R Nonsubstantive revisions propose to make the capitalization policy disclosure consistent with other SSAPs.
2014-05 SSAP No. 19
&
SSAP No. 22
ASU 2014-05, Service Concession Arrangements Nonsubstantive revisions propose to adopt with modification ASU 2014-05, Service Concession Arrangements to clarify that service concession arrangements are not within the scope of SSAP No. 22 and shall not be recognized as property, plant or equipment in SSAP No. 19. Comments are requested on the prevalence of these arrangements.
2014-06 SSAP No. 57 SSAP No. 57—Title Insurance Premium Classifications Nonsubstantive revisions propose to replace the premium disclosure categories with five activity codes and expand the definitions of “type of rate” to coincide with previous changes to the title blank.
2014-07 SSAP No. 11 SSAP No. 11 – Clarification of Adopted GAAP Nonsubstantive proposed revisions identify the adoption of paragraphs 6A and 7 of Accounting Principles Board Opinion (APB) 12, Omnibus Opinion – 1967 and to add guidance to reflect previously adopted GAAP. Comments are requested on existing disclosures.
2014-08 Various Issue Papers Reference SSAPs on Issue Papers Nonsubstantive revisions propose to add reference to the original SSAP that corresponds with the issue paper, as well as the current authoritative SSAP guidance for the related topic.
2014-09 SSAP No. 86 ASU 2014-03, Derivatives and Hedging – Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps – Simplified Hedge Accounting Approach Nonsubstantive revisions propose to reject ASU 2014-03, Derivatives and Hedging – Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps – Simplified Hedge Accounting Approach.

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

 

 

Conference Call Calendar

NAIC conference calls & interim meetings are available on the NAIC Conference Call Calendar. See NAIC's revised policy statement on open meetings.

Conference Call
Wednesday, May 7, 2014
11:00 a.m. Eastern / 10:00 a.m. Central / 9:00 a.m. Mountain / 8:00 a.m. Pacific / 7:00 a.m. Alaska / 6:00 a.m. Hawaii
 

  • Materials will be posted prior to call
Conference Call Calendar

Introduction to
Statutory Accounting Principles
Two-Week Online Self-Study Course

documents and resources
Relating SVO Unit Prices to the Fair Value Hierarchy
Structured Securities

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
April 2014

SAP to Annual Statement Disclosure Checklist Updated for 2013 Annual Statements

Please note, in an effort to go green, the spreadsheets are spaced to view the entire width on a computer screen. 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.

Join the Statutory Accounting Electronic Updates Membership
Related NAIC Publications
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

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Contacts
Media queries should be directed to the NAIC Communications Division at 816-783-8909 or news@naic.org.
Julie Gann
Senior Manager - Accounting and Reporting
Phone: 816-783-8966
Fax: 816-460-7821
Robin Marcotte
Senior Manager – Accounting and RBC
Phone: 816-783-8124
Fax: 816-460-7571
Please see the current Committee List for a complete list of committee members.