Blanks (E) Working Group
December 2, 2007

The Blanks Working Group met on Sunday, December 2, 2007. During this meeting, the Blanks Working Group discussed various proposals and took the following action on those proposals:

Action Items:

1. Adopted the following blanks proposals which were previously exposed for comment.

• 2007-35BWG - Add code to Schedule D Part 1 column 3 (code column) for TBAs (To Be Announced securities).
• 2007-36BWG - Add language to the instruction for line 2 of the Supplemental Investment Risk Interrogatories regarding the use of CUSIP numbers for determining the single 10 largest exposures to a single issuer/ borrower/ investment.
• 2007-37BWG - Change the column 18 name of Schedule D Part 1 and Schedule DA Part 1 from “How Paid” to “When Paid”.
• 2007-38BWG - Add codes to the Supplement A to Schedule T to designate the type of health care provider.
• 2007-39BWG - Add instruction to report income received columns net of foreign withholding tax for Schedule D Part 1, 2, 4 and 5, Schedule DA Part 1 and Schedule E Part 2.
• 2007-41BWG - Modify Schedule P instructions related to discounting, specifically referencing SSAP 65.
• 2007-42BWG - Add instruction for the allocation of premiums by state for Schedule T and Schedule T, Part 2 clarifying state allocation of individual and group life and annuity premium based on residence, and a rule of 500 for group insurance based on residence or employment location for the Life, Health and Fraternal blanks.
• 2007-43BWG - Add instruction clarification for the allocation of premiums by state for Schedule T and Schedule T, Part 2 for the Property/Casualty blank. Proposal was modified to exclude individual health insurance.
• 2007-44BWG - Add cross check references to the actuarial opinion instructions for Exhibits A and B disclosures.
• 2007-46BWG - Add paragraph 1C to the Statement of Actuarial Opinion instructions regarding intercompany pooling arrangements. Add corresponding instruction to the Actuarial Opinion Summary instructions and modify line 6 of Exhibit B, Statement of Actuarial Opinion to allow a “not applicable” answer.  
• 2007-47BWG - Add instruction to the Summary Investment Schedule line 2 to include Class One Bond Mutual Funds and Exchange Traded Funds. Modify line 3 instructions to include mutual funds reported on Schedule D, Part 2, Section 2. Add specific schedule references and remove the exclude statement from the line 8 instruction.

2. Items Withdrawn:

• 2007-45BWG - Changes to the criteria in the Health test.

3.     Exposed five new proposals for comment. Comment period ends February 28, 2008.
4.     Adopted the listing of editorial changes.

Other Discussion:

1. Received a final report on the Investment Schedules Subgroup and the subgroup was disbanded. Also heard reports from the P&C Lines of Business Subgroup and the Schedule T Subgroup.
2. Received a summary from the American Academy of Actuaries of potential changes to the blanks and instructions due to principles based reserving.  
3. Updated the hybrid securities guidance on the website with an effective date to 1/1/2009.
4. Received Notes to Financial Statement disclosures from the Statutory Accounting Principles Working Group for subprime mortgage related risk exposures (SSAP 1), and investments in a downstream noninsurance holding company (SSAP 97).
5. Announced that included in the proposed NAIC 2008 budget is a reverse fiscal impact ending the NAIC’s collection, retention and management of all annual and quarterly statement hard copies and noted that relevant changes to the instructions and blanks would be made as editorial changes if the budget item is adopted.
6. Reviewed the status of states collecting hard copy filings from their foreign companies.  The final 6 states will be contacted for an explanation of the need for collection of paper filings.