Summary of Recent Changes as of 1/18/2016

 2014-2015 Exposure Drafts produced by NAIC Financial Condition Committee (E)’s

Accounting Practices and Procedures Task Force

Emerging Accounting Issues Working Group             

Section Description Status
2015-18 Appendix F – Policy Statement Revisions – Membership and Roles of SAPWG – Revisions propose to disband the Emerging Accounting Issues (E) Working Group, with the Statutory Accounting Principles (E) Working Group incorporating a new process to issue interpretations and to increase its membership by two. Additionally, other proposed revisions reflect changes to reflect current SAPWG processes, with the goal being to cut back the time it takes to issue interpretations. Adopted November 19, 2015. Effective January 1, 2016.
INT 15-01 SSAP No. 107 – Risk Corridors Collectability – Revisions provide interpretative guidance on nonadmittance, impairment and other items regarding ACA risk corridors receivables in light of proration payments. Adopted November 15, 2015. Effective upon date of adoption.


Statutory Accounting Principles Working Group

Ref No. and link Related SSAP Description Status
2013-36 SSAP No. 26 Investment Matrix – The investment matrix provides current information regarding investments within various SSAPs. Investment matrix is proposed to help clarify definitions, scope, and the accounting method/related reporting. This exposure draft also proposes a new SSAP to capture investments that are outside of specific “investment-type” definitions and eliminate other SSAPS to maintain consistency and appropriate valuation and reporting. Some of the proposed adjustments include:

·         Redefine various investment types

·         Allowing “look-through” accounting for certain types of investments of insurers, with specific inclusions of items in the bond or equity SSAPS that do not meet the SSAP definition.

·         Address inconsistencies relating to reporting of items within Schedule D and Schedule BA.

·         Clarify differing treatments for some investments by type of insurer.

NAIC staff have continued to work with issuers, vendors, and industry in evaluating BlackRock’s “calculated” amortized cost valuation proposal. Responses from prior exposures are included in most current draft.

Most recent draft was exposed with a comment deadline of February 5, 2016.

2014-25 SSAP No. 41R and Issue Paper No. 151 Holders of Surplus Notes – Exposure draft proposes clarification on the proper method used to determine reported value of surplus notes. It proposes that surplus notes with a CRP rating of NAIC 1 or 2 to be recorded at amortized cost. All others should be reported at the lower of amortized cost or fair value. Added guidance for impairment. Currently in exposure draft with comment deadline of February 5, 2016.


SSAP No. 26 Prepayment Penalties and Amortization on Callable Bonds, Modification to SSAP No. 26 to deal with amortization on callable bonds (including bonds with make-whole call provisions).  Clarifies the yield to worst concept for callable bonds. Clarifies that prepayment penalties and acceleration fees are to be reported as realized gains. Effective October 19, 2016.
2015-08 SSAP No. 97 SSAP No. 97—Investments in Subsidiary, Controlled and Affiliated Entities (SCA),

1) Adopted disclosure requiring identification of permitted or prescribed practices reflected in an investment in an insurance SCA (per 8.b.i) for which the audited statutory equity reflects a departure from the NAIC statutory accounting practices and procedures.


2) Adopted revisions to clarify accounting for non-insurance SCA’s and clarify adjustments for non-insurance SCA’s meeting the revenue and activity test.

Part 1 effective November 19, 2015 and Part 2 effective December 10, 2015.
2015-19 SSAP No. 1 and Annual Statement Quarterly reporting of restricted assets- Nonsubstantive revisions to clarify that disclosure of restricted assets shall be included in the annual financial statements, and in the interim financial statements if significant changes have occurred since the annual statement Currently in exposure draft with comment deadline of February 5, 2016
2015-21 SSAP No. 55 Clarification of accounting treatment for fees incurred for salvage/subrogation recoveries – Nonsubstantive revisions clarifying that fees incurred for salvage/subrogation should be reported gross, regardless of whether they are processed internally or paid to a third party. Currently in exposure draft with comment deadline of February 5, 2016
2015-27 SSAP No. 1 Quarterly Reporting of Investment Schedules, Request for comments on a proposal suggesting quarterly, electronic-only data as an NAIC supplemental filing that includes the CUSIP, par value, book adjusted carrying value and fair value for Schedule D investments. Currently in exposure draft with comment deadline of February 5, 2016
2015-30 SSAP No. 107 Premium Adjustments Subject to Redetermination, Non-substantive revisions regarding contracts subject to redetermination. The revisions are consistent with recent revisions adopted in SSAP No. 54. Effective October 19, 2015.
2015-41 SSAP No. 26 and SSAP No. 43R Measurement Method for NAIC 5 and 6 Designations, Exposed agenda item requests comments on whether revisions are needed to statutory accounting if the SVO no longer provides a designation of 5* investments after reviewing insurer self-certifications. With the proposal, insurers will self-designate with disclosure in a general interrogatory. Currently in exposure draft with comment deadline of February 5, 2016.
2015-45 SSAP No. 26 and Schedule D Reporting ETF reporting in investment schedules – Exposure includes two nonsubstantive options to modify the reporting of SVO bond-designated ETFs and Class-1 bond mutual funds. Currently in exposure draft with comment deadline of February 5, 2016
2015-52 SSAP No. 1, A-205, A/S Reporting Instructions Clarification of permitted practice disclosure – Nonsubstantive revisions to clarify the guidance and reporting requirements for permitted and prescribed practices. Currently in exposure draft with comment deadline of February 5, 2016

If you have questions about how any of these changes may affect your organization, please contact

Martha Hayes at