Emerging Accounting Issues (E) Working Group
September 29, 2007

The working group took the following actions on its Tentative Positions:

• INT 07-02: EITF 06-01: Accounting for Consideration Given by a Service Provider to Manufacturers of Resellers of Equipment Necessary for an End-Consumer to Receive Service from the Service Provider

• Final – The exposed tentative consensus was adopted as final. The consensus rejects EITF 06-1 as not applicable to statutory accounting principles.

• INT 07-03: EITF 06-3: How Taxes Collected from Customers and Remitted to Governmental Authorities Should be Presented in the Income Statement (That is Gross versus Net Presentation)

• Final – The exposed tentative consensus was adopted as final. The tentative consensus directs application of guidance within SSAP 35 or application of gross or net reporting depending on ultimate responsible party for tax assessment.

The working group addressed the following Outstanding Issues:

• EITF 06-4: Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements (EITF 06-4)

• Tentative – The Working Group issued a tentative consensus to adopt EITF 06-04 with modifications to the transition guidance to reference appropriate statutory accounting for a change in accounting principle.

• EITF 06-5: Accounting for Purchases of Life Insurance – Determining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin 85-4 (EITF 06-5)

• Referred – The Working Group referred this issue to the Statutory Accounting Principles Working Group to determine if an interpretation of the existing guidance is sufficient, or if additional detail should be included in SSAP No. 21 to provide clarity.

EITF 06-10: Accounting for Deferred Compensation and Postretirement Benefit Aspects of Collateral Assignment Split-Dollar Life Insurance Arrangements (EITF 06-10)

• Tentative – The Working Group issued a tentative consensus to adopt EITF 06-10 with modifications to the transition guidance to reference statutory accounting for a change in accounting principle.

FSP EITF 85-24-1: Application of EITF Issue No. 85-24 When Cash for the Right to Future Distribution Fees for Shares Previously Sold is Received from Third Parties

• Tentative – The Working Group issued a tentative consensus to reject FSP EITF 85-24-1 as not applicable to statutory accounting.

• Goodwill of a Merged Subsidiary

• Referred – The Working Group referred this issue to the Statutory Accounting Principles Working Group for additional review.

The comment deadline for the exposed items is Nov. 9 , 2007. (A comment deadline of 30 working days is due to a shortened fourth quarter.)