Codification Update Presented by: Dave Christensen NAIC Statutory Accounting Principles Manager.

Codification Update

Presented by:

Dave Christensen

NAIC Statutory Accounting Principles Manager

© National Association of Insurance Commissioners 2000

2

Dave Christensen Statutory Accounting Principles Manager Supports following NAIC working groups:

– Statutory Accounting Principles WG

– Emerging Accounting Issues WG

– NAIC/AICPA WG

– Underwriting & Reinsurance Pools WG Specialize in accounting for P/C entities Joined NAIC in October 1997 Audit Manager with Deloitte & Touche Brief career as a golf professional Graduate of Kansas State University CPA, AICPA


3

Overview of Presentation

Brief history of Codification project Discussion of maintenance process Review of current issues Review changes from 1999 version to 2000

version of the Accounting Practices and Procedures Manual - Effective 1/1/01

Implementation issues


4

History of the Project

1989 & 1991 solvency agenda Comprehensive guide & comparability AICPA white paper 1994 project reorganized Statement of position 95-5 Adopted by NAIC in March 1998 Current AICPA position


5

Maintenance Process

Maintenance governed by Policy Statements

Functions of Statutory Accounting Principles WG

Functions of Emerging Accounting Issues WG

Agenda process Publication of the manual


6

Maintenance FlowchartLEVEL 1 LEVEL 2 LEVEL 3

GAAP Status Report Disposition Report

Substantive List Active Report

Pending List Rejected Report

Nonsubstantive List Active Report

All Other Sources Disposition Report


7

Website information Statutory Accounting Principles WG

– www.naic.orgProducts and ServicesFinancial Date ReportingStatutory Acctg Principles WG

– http://www.naic.org/finance/codific/codtoc2.htm Emerging Accounting Issues WG

– www.naic.orgProducts and ServicesFinancial Date ReportingEmerging Accounting Issues WG

– http://www.naic.org/emerging/index.htm


8

Current Issues

Statutory Accounting Principles WG Maintenance Agenda– Pending Listing– Active Reports– Disposition Reports– Rejected Listing

EAIWG Status of Issues


9

Layout of March 2000 Version

Volume I– SSAPs– Index– Glossary– Appendix A - Model Laws– Appendix B - INTs– Appendix C - Actuarial– Appendix D - GAAP X-Ref

Volume II– Appendix E - IPs– Appendix F - Policy


10

Changes from 1999 Version to March 2000 Version

All changes are in effect for fiscal periods beginning January 1, 2001

New rules will be reflected in 1st quarter 2001 statements

1999 2000


11

SSAP Update

Use of “FV”, “MV” and “FMV” SSAP No. 8 - Adoption of FAS No. 132 SSAP No. 14 - Adoption of FAS No. 132 SSAP No. 35 - Rejection of SOP 97-3 SSAP No. 53 - Added guidance for

advance premiums SSAP No. 65 - Language added to clarify

non-tabular discounting not acceptable NAIC accounting practice


12

Other Update

Index to SSAPs Glossary


13

Appendix A Update

A-010– Language added throughout SSAP in order

to conform with changes made to the NAIC Health Insurance Reserves Model Regulation


14

Appendix B Update

No. Disposition No. Disposition

INT 99-1 Adopt INT 99-18 AdoptINT 99-2 No Consensus INT 99-19 RejectINT 99-3 Adopt INT 99-20 RejectINT 99-4 Adopt INT 99-21 AdoptINT 99-5 Reject INT 99-22 AdoptINT 99-6 Reject INT 99-23 AdoptINT 99-7 Reject INT 99-24 AdoptINT 99-8 Reject INT 99-25 AdoptINT 99-9 Reject INT 99-26 Adopt

INT 99-10 Adopt INT 99-27 AdoptINT 99-11 Reject INT 99-28 AdoptINT 99-12 Reject INT 99-29 AdoptINT 99-13 Reject INT 00-01 AdoptINT 99-14 Adopt INT 00-02 AdoptINT 99-15 Reject INT 00-03 AdoptINT 99-16 AdoptINT 99-17 Adopt


15

Appendix C Update

Appendix C now contains Actuarial Guidelines

Prior to addition they resided in the NAIC Financial Examiners Handbook


16

Appendix D Update

This listing has been updated to reflect the current status of GAAP Pronouncements as of December 6, 1999

This listing has been updated to reflect the current status of EITF Issues as of September 22, 1999


17

Appendix E Update

IP No. 8 - Adoption of FAS No. 132 IP No. 14 - Adoption of FAS No. 132 IP No. 30 - Deleted language on wash

sales IP No. 35 - Rejection of SOP 97-3 IP No. 54 - Revised to be consistent with

NAIC Health Insurance Reserves Model IP No. 56 - Clarification of acctg and

reporting for deposit-type contracts IP No. 99 - Updated for N/A GAAP


18

Appendix F Update

Now contains NAIC Policy Statements specific to statutory accounting principles


19

State Implementation

Named the Accounting Practices & Procedures Manual– Some states can adopt by name alone– Others require legislature

States are currently reviewing their code and regulations.

ACLI, AAI, AIA, NAII and NAMIC have contacted states to determine states implementation plans and have summarized these plans in a chart.


20

Codification Update Presented by: Dave Christensen NAIC Statutory Accounting Principles Manager.

Documents

Transcript of Codification Update Presented by: Dave Christensen NAIC Statutory Accounting Principles Manager.