Exposure Drafts Outstanding
Statutory Accounting Principles (E) Working Group
Last Updated 2/05/19

Please address comment letters to Dale Bruggeman, Chair of the Statutory Accounting Principles (E) Working Group, and direct to Julie Gann, Robin Marcotte, Fatima Sediqzad and Jake Stultz.

SUBSTANTIVE AND NONSUBSTANTIVE EXPOSURES
Ref No. Issue Paper/ SSAP No./ Appendix Title Description
EXPOSURES with COMMENT DEADLINE of MARCH 5, 2019
2019-02

INT 19-02
SSAP No. 26R Single Security Initiative Exposed tentative INT provides a limited-scope exception to the exchange guidance in SSAP No. 26R or instruments converted in exchange with the Freddie Mac Single Security Initiative. Comments on this exposure are due March 5, 2019.
EXPOSURES with COMMENT DEADLINE of FEBRUARY 15, 2019
2019-01

INT 19-01

SSAP No. 6

Extension of Ninety-Day Rule for the Impact of California Fires Exposed revisions to SSAP No. 6 to temporarily extend the ninety-day rule for nonadmission of uncollected premiums to insurers for policies which were affected by the California Camp Fire, Hill Fire and Woolsey Fire.
2018-17 IP No. 160 Structured Settlements Exposed Issue Paper No. 160, which documents the adopted substantive revisions to SSAP No. 21R–Other Admitted Assets. (The revisions to SSAP No. 21 were already adopted and are effective for year-end 2018.)
2018-18 SSAP No. 2

SSAP No. 26R

SSAP No. 43R

SSAP No. 86

Reporting Information
Structured Notes Re-exposed revisions require structured notes, except for mortgage-referenced securities, for which the contractual principal amount to be paid at maturity is at risk for other than failure of the borrower to pay the contractual amount due, to be reported as derivatives under SSAP No. 86. (Mortgage-referenced securities are proposed to be in scope of SSAP No. 43R.)

For structured notes not captured in SSAP No. 43R, comments are requested on the classification of structured notes as derivatives or as mandatory convertible bonds within scope of SSAP No. 26R.

With the re-exposure of the agenda item, a comparison of reporting structured notes as derivatives or as mandatory convertible bonds has also been exposed.
2018-22 SSAP No. 37 Participation Agreement in a Mortgage Loan Exposed revisions clarify that mortgage loans acquired through a participation agreement are limited to single mortgage loan agreements and excludes “bundled” mortgage loans.
2018-26 SSAP No. 97 SCA Loss Tracking – Accounting Guidance Re-exposed agenda item with direction for NAIC staff to work with interested parties and research applicable U.S. GAAP guidance to consider revisions to existing guidance that requires negative SCA reporting when there is a guarantee or commitment to provide financial support.
2018-32 SSAP No. 26R SSAP No. 26R – Prepayment Penalties Exposed revisions provide guidance for determining the prepayment penalty for called bonds when consideration received is less than par. Comments are requested on whether additional illustrations should be added to the SSAP or if existing illustrations should be eliminated or condensed.
2018-33 SSAP No. 30R SSAP No. 30R – Pledges to FHLBs Exposed revisions clarify that assets pledged to an FHLB on behalf of an affiliate shall be nonadmitted pursuant to SSAP No. 4—Assets and Nonadmitted Assets. Comments are requested on activities that that occur involving FHLBs with affiliates, or in a holding company "group" structure.
2018-34 SSAP No. 30R SSAP No. 30R – Foreign Mutual Funds Exposed revisions include foreign mutual funds within the scope of the SSAP. Comments are requested on the classification between domestic and foreign, as well as reporting as diversified securities.
2018-35 SSAP No. 95

SSAP No. 104R
ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting Exposed revisions to SSAP No. 104R adopt with modification ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting to eliminate the specific section for nonemployee awards and include guidance for nonemployees with the share-based payment guidance for employees.

Revisions to SSAP No. 95 (detailed in the agenda item) update previously adopted U.S. GAAP guidance to reflect revisions from ASU 2018-07.
2018-36 SSAP No. 100R ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement Exposed revisions adopt with modification the disclosure requirements in ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement. The revisions also clarify prior actions by the Working Group on related U.S. GAAP pronouncements.
2018-37 SSAP No. 92

SSAP No. 102
ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans Exposed revisions adopt with modification the disclosure amendments reflected in ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans.
2018-38 SSAP No. 55 Prepaid Providers Exposed revisions provide guidance clarifying that prepayments to providers of claims and adjusting services shall be recognized as miscellaneous underwriting expenses. The guidance provides for reclassification as claims adjustment expense or claims expense, as applicable, as claims are paid.
2018-39 SSAP No. 55 Interest on Claims Exposed revisions clarify that interest paid to claimants on accident and health claims shall be reported as other claims adjustment expense. Interest paid to regulatory agencies shall be reported at regulatory fines and penalties. Comments are requested on the effective date and the tentative recommendations for other lines of business.
2018-40 SSAP No. 16R ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software – Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract

Exposed revisions adopt with modification ASU 2018-15 and specify that capitalized implementation costs shall be treated as nonoperating system software (nonadmitted and amortized over a period not to exceed five years).

2018-41 Appendix D ASU 2017-13, Amendments to SEC Paragraphs Exposed revisions reject ASU 2017-13, Amendments to SEC Paragraphs as not applicable to statutory accounting.
2018-42 Appendix D ASU 2018-02, Reclassification of Certain Tax Effects from AOCI Exposed revisions reject ASU 2018-02, Reclassification of Certain Tax Effects from AOCI as not applicable to statutory accounting.
2018-43 Appendix D ASU 2018-04, Debt Securities and Regulated Operations, Amendments to SEC Paragraphs Exposed revisions reject ASU 2018-04, Debt Securities and Regulated Operations, Amendments to SEC Paragraphs as not applicable to statutory accounting.
2018-44 Appendix D ASU 2018-05, Income Taxes, Amendments to SEC Paragraphs Pursuant to SAB 118 Exposed revisions reject ASU 2018-05, Income Taxes, Amendments to SEC Paragraphs Pursuant to SAB 118 as not applicable to statutory accounting.
2018-45 Appendix D ASU 2018-06, Codification Improvements to Topic 942 - Depository and Lending Exposed revisions reject ASU 2018-06, Codification Improvements to Topic 942 – Depository and Lending as not applicable to statutory accounting.
2018-46 SSAP No. 86 Benchmark Interest Rates Exposed revisions add the Securities Industry and Financial Markets (SIFMA) Municipal Swap Rate and the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as U.S. benchmark interest rates for hedge accounting.
2018-47EP SSAP No. 97 Editorial Process Exposed revisions clarify that SSAP No. 48 entities are not required to complete SSAP No. 97 disclosures unless directed under SSAP No. 48.
EXPOSURES with COMMENT DEADLINE of NOVEMBER 30, 2018
2016-02 SSAP No. 22R

Issue Paper
ASU 2016-02, Leases Exposed issue paper and substantively revised SSAP No. 22R to update the statutory accounting guidance for leases.
2018-06 SSAP No. 4 Regulatory Transactions - Referral from the Reinsurance (E) Task Force Exposed revisions identify that items reported as invested assets acquired as part of "regulatory transactions," that meet the definition of an asset, shall only be admitted with approval of the domestic state insurance department as a permitted or prescribed practice.
2018-07 SSAP No. 41R Surplus Note Accounting - Referral from the Reinsurance (E) Task Force Exposed revisions add guidance to prevent situations in which issued surplus notes can be linked to a reported asset or agreement and still qualify for surplus note reporting.

There are no advance materials at this time.

INT 18-04: Extension of Ninety-Day Rule for the Impact of Hurricane Florence and Hurricane Michael

This interpretation provides a limited-time optional extension of the ninety-day rule for uncollected premium balances, bills receivable for premiums and amounts due from agents and policyholders directly impacted by Hurricane Florence, Hurricane Michael, tropical storm Florence, tropical storm Michael, or the related flooding. This INT will automatically nullify on March 7, 2019.

INT 18-03: Additional Elements Under the Tax Cuts and Jobs Act

This interpretation provides accounting and reporting guidance for the Repatriation Transition Tax, Alternative Minimum Tax Credit and the Global Intangible Low-Taxed Income.

INT 18-01: Updated Tax Estimates Under the Tax Cuts and Jobs Act (Act)

This interpretation provides a limited-time, limited-scope exception to SSAP No. 9 to not require recognition of changes in reasonable estimates from the Act as Type I subsequent events after the issuance of the statutory financial statements. Additionally, the INT provides instruction for reporting changes in deferred income taxes in the financial statements. This interpretation will be automatically nullified on Dec. 31, 2018.

Subsidiary, Controlled or Affiliated (SCA)

Relating SVO Unit Prices to the Fair Value Hierarchy

Structured Securities

Accounting Practices and Procedures Manual

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 NAIC staff via email (see contact information below) for 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
Updated November 27, 2018

SAP to Annual Statement Disclosure Checklist Updated for 2018 Annual Statements
Updated 1/31/2019

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.

 

Education & Training Events

Related NAIC Publications

Contacts

Statutory Accounting Principles (E)
Working Group

The Statutory Accounting Principles (E) Working Group is responsible for developing and adopting substantive, nonsubstantive and interpretation revisions to the NAIC Accounting Practices and Procedures Manual (AP&P Manual). The AP&P Manual provides the basis for insurers to prepare financial statements for financial regulation purposes.

Substantive statutory accounting revisions introduce original or modified accounting principles. Substantive revisions can be reflected in an existing Statement of Statutory Accounting Principles (SSAP) or a new SSAP. Nonsubstantive statutory accounting revisions are characterized as language clarifications that do not modify the original intent of a SSAP. SSAPs are considered the highest authority (Level 1) in the statutory accounting hierarchy.

An interpretation to an existing SSAP may be developed to provide timely application, interpretation or clarification guidance. Revisions classified as an interpretation shall not amend, supersede or conflict with existing, effective SSAPs. Interpretations are considered the second highest authority (Level 2) in the statutory accounting hierarchy.

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.

2019 Charges

For revisions adopted by the Working Group, please refer to the Accounting Practices and Procedures Manual Updates Web page