Blanks (E) Working Group
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Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index

The Blanks Working Group met June 13, 2009. During this meeting, the Blanks Working Group discussed various proposals and took the following action on those proposals:

1.    Adopted the following item, which generated significant discussion:

• 2009-16BWG – Add new Schedule DB forms and instructions and eliminate the current forms and instructions. This includes changes to the instructions for related schedules. There was discussion regarding “hedge effectiveness.” The proposal was modified to indicate that when hedge effectiveness could not be calculated, companies should disclose the financial or economic impact of the hedge at the end of the reporting period in the Schedule DB footnotes. The modified proposal was adopted for first quarter 2010. 

2.    Adopted the following blanks proposals, which were previously exposed for comment:

• 2009-01BWG – Add instructions to the Exhibit of Premiums and Losses for Line 2.1. Modify the instructions for Line 2.3 to clarify that flood coverage, other than coverage provided as part of the federal flood program, should be reported in Line 2.1.
• 2009-02BWG – Add a Structured Settlements interrogatory for life and fraternal companies to disclose reserves established for annuities purchased by property and casualty companies for structured settlements resulting in a release of liability for the property and casualty companies.
• 2009-03BWG – Add crosschecks to Note 9, Income Taxes for A(3) and A(5).
• 2009-04BWG – Add instructions to Schedule D (Part 1, 3, 4 & 5) and Schedule E (Part 1) to clarify the reporting of investments in certificate of deposits via Certificate of Deposit Account Registry Service (CDARs) and other similar services.
• 2009-05BWG – Modify the instructions to clarify that the “Change in Net Deferred Income Tax” line of Page 4 (Page 5 for Health) of the annual statement represents the gross change in net deferred tax assets.
• 2009-06BWG – Add Annual Statement Line 17.3, Excess Workers’ Compensation, to the Underwriting and Investments Exhibits. Modify the IEE and State Page to show Annual Statement Lines 17.1, 17.2 and 17.3 as separate lines to be the same as the Underwriting and Investment Exhibits. Add instructions to Schedule P to clarify Excess Workers’ Compensation reporting.
• 2009-07BWG – Add crosschecks to Statement of Revenue and Expenses; Underwriting and Investment Exhibit Part 2; Exhibit 3; General Interrogatories; and Exhibit of Premiums, Enrollment and Utilization.
• 2009-08BWG – Add a supplement to the Property and Casualty Statement for reporting of Bail Bond policies.
• 2009-09BWG – Modify disclosures in Note 17B to reflect disclosure modifications adopted for SSAP No. 91 – Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities by the Statutory Accounting Principles Working Group.
• 2009-10BWG – Add a new disclosure for Note 5F related to participating mortgage loans.
• 2009-11BWG – Add instructions to Note 14A for disclosure of guarantees of indebtedness of others.
• 2009-12BWG – Move the disclosure in Note 20H Federal Home Loan Bank (FHLB) agreements to Note 11 for all statement types. Include the disclosure in Note 31 for life and fraternal statements for agreements where the substance of the agreement is a funding agreement. This proposal adds an instruction related to the Note 31F illustration currently shown in the instructions.
• 2009-13BWG – Modify the illustration for Note 5E(3) to reflect changes that were made to the 2008 instructions as a result of the changes to SSAP No. 91R – Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities adopted in December 2008 by the Statutory Accounting Principles Working Group.
• 2009-14BWG – Modify the instructions for Interest Maintenance Reserve, Line 2 and Asset Valuation Reserve, Line 2 with language for other-than-temporary impairments.
• 2009-15BWG – Add an interrogatory question at the end of the General Interrogatories, Part 2 related to Health Savings Accounts.

2009-17BWG – Clarify the use of two separate columns for the Method Used to Obtain Fair Value in Schedule D Part 2, Sections 1 and 2. The instructions will be split between Method Used to Obtain Fair Value Code (for the single character code) and Source Used to Obtain Fair Value (for those codes where naming of pricing service, stock exchange, broker or custodian is required).

• 2009-18BWG – Add an electronic column to Schedule D Part 1 to indicate the collateral type for structured securities reported under the industrial and miscellaneous grouping.  
• 2009-19BWG – Add an interrogatory to the statement to determine availability of broker or custodian pricing policies and the reporting entity’s process for determining reliability of the pricing source if the reporting entity does not have a copy of the broker or custodian pricing policy.
• 2009-20BWG – Add specific lines to the Assets and Liabilities pages for derivative amounts currently being reported as write-ins. Update references in the 5 Year Historical and add lines to capture information on derivatives added to the assets page. These changes will also be made consistently to the quarterly instructions and blank as well as to the other parts of the blank and instructions affected.
• 2009-21BWG – For the Health blank, add a requirement to inform the Commissioner about the initial appointment of an Appointed Actuary and provide some additional information. Expands the Actuarial Memorandum requirement.
• 2009-22BWG – Retain the Long Term Care Experience Reporting Forms and instructions, replaced by proposal 2007-49BWG for 2009, for one year with the expectation to remove in 2010. Retain Document Identifier numbers for old forms for barcodes. (NOTE: Title statement only included because Document Identifier numbers are uniform and included in the instructions for all statement types).
• 2009-23BWG – Add a Medicare Part D stand-alone line to the Accident and Health Policy Experience exhibit for group and individual.

Action items:
1.     Adopted 23 blanks proposals.
2      Exposed eight proposals for comment. The comment deadline on all new proposals is Aug. 21, 2009.
3.     Adopted the listing of editorial changes.
4.     Adopted a report from the Procedures Subgroup and exposed the proposed changes for a two-week comment period. A conference call will be scheduled to discuss any comments and decide an action.

Other Discussion:

• Received an updated status on Principles-Based Reserves.
• Note: One quarterly proposal—2009-24BWG—was adopted by e-mail vote of the Working Group members after a 30-day exposure period.