NAIC BLANKS (E) WORKING GROUP
Blanks Agenda Item Submission Form
DATE: 07/18/2014CONTACT PERSON:
TELEPHONE:
EMAIL ADDRESS:
ON BEHALF OF:
NAME: Joseph Torti III
TITLE: Co-Chair Principle-based Reserving
Implementation (EX) Task Force
AFFILIATION: RI Division of Insurance and Banking
ADDRESS: 1511 Pontiac Ave, Bldg. 69-2
Cranston, RI 02920-4407 / FOR NAIC USE ONLY
Agenda Item # 2014-18BWG
Year 2014
Changes to Existing Reporting [ ]
New Reporting Requirement [ X ]
REVIEWED FOR ACCOUNTING PRACTICES AND PROCEDURES IMPACT
No Impact [ X ]
Modifies Required Disclosure [ ]
DISPOSITION
[ ] Rejected For Public Comment
[ ] Referred To Another NAIC Group
[ ] Received For Public Comment
[ ] Adopted Date
[ ] Rejected Date
[ X ] Deferred Date 08/16/2014
[ ] Other (Specify)
BLANK(S) TO WHICH PROPOSAL APPLIES
[ X ] ANNUAL STATEMENT [ ] QUARTERLY STATEMENT
[ X ] INSTRUCTIONS [ ] CROSSCHECKS [ X ] BLANK
[ X ] Life and Accident & Health [ X ] Property/Casualty [ X ] Health
[ ] Separate Accounts [ X ] Fraternal [ X ] Title
[ ] Other Specify
Anticipated Effective Date: Annual 2014
IDENTIFICATION OF ITEM(S) TO CHANGE
Add a new Supplemental XXX/AXXX Reinsurance Exhibit (Parts 1, 2 and 3) to the Life and Fraternal blank.
NOTE: Property, Health and Title are included in this proposal only because the bar code list is uniform for all statement types.
REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE**
The purpose of this proposal is to add the Supplemental XXX/AXXX Reinsurance Exhibit contemplated by the XXX/AXXX Reinsurance Transactions Framework adopted in concept by the Principle-Based Reserving Implementation (EX) Task Force on June 30, 2014.
NAIC STAFF COMMENTS
Comment on Effective Reporting Date:
Other Comments:
** This section must be completed on all forms. Revised 6/13/2009
ANNUAL STATEMENT INSTRUCTIONS – LIFE AND FRATERNAL
SUPPLEMENTAL XXX/AXXX REINSURANCE EXHIBIT
PART 1 – ALL XXX AND AXXX CESSIONS
This exhibit is required to be filed no later than April 1.
Part 1 applies to all cessions of those certain life insurance policies required to be valued under the Section 6 of the NAIC Valuation of Life Insurance Policies Model Regulation (#830), commonly referred to as Regulation XXX, or to ULSG policies required to be valued under Section 7 of Regulation XXX as further clarified by the NAIC Actuarial Guideline XXXVIII – The Application of the Valuation of Life Insurance Policies Model Regulation (A.G. 38), commonly referred to as AXXX by the reporting entity.
Column 1 – NAIC Company Code
Provide the NAIC code of the assuming insurer.
Column 2 – ID Number
Enter one of the following as appropriate for the assuming insurer reported on the schedule. See the Schedule S General Instructions for more information on these identification numbers.
Federal Employer Identification Number (FEIN)
Alien Insurer Identification Number (AIIN)
Certified Reinsurer Identification Number (CRIN)
Column 3 – Name of Company
Provide the name of the assuming insurer.
Column 4 – Authorized Reinsurer (YES/NO)
Enter “YES”, if the reinsurance was ceded to an assuming insurer licensed to transact insurance or reinsurance in the reporting entity’s state of domicile within the meaning of Section 2.A. of the NAIC Credit for Reinsurance Model Law (Model 785), as adopted in the reporting entity’s state of domicile, and that, in addition, is described in Section [[insert]] of Actuarial Guideline [[insert no. here]] “Treatment of Reinsurance for Policies required to be Valued under Sections 6 and 7 of the NAIC Valuation of Life Insurance Policies Model Regulation in the Actuarial Opinion.”
Column 5 – Accredited Reinsurer (YES/NO)
Enter “YES”, if the reinsurance was ceded to an assuming insurer that is accredited by the commissioner of the reporting entity’s state of domicile within the meaning of Section 2.B. of the NAIC Credit for Reinsurance Model Law (Model 785), as adopted in the reporting entity’s state of domicile and that, in addition, is described in Section [[insert]] of Actuarial Guideline [[insert no. here]] “Treatment of Reinsurance for Policies required to be Valued under Sections 6 and 7 of the NAIC Valuation of Life Insurance Policies Model Regulation in the Actuarial Opinion.”
Column 6 – Certified Reinsurer (YES/NO)
Enter “YES”, if the reinsurance was ceded to an assuming insurer that has been certified by the commissioner as a reinsurer in this state within the meaning of Section 2.E. of the NAIC Credit for Reinsurance Model Law (Model 785), as adopted in the reporting entity’s state of domicile.
Column 7 – Reinsurer Domiciled in Another State (YES/NO)
Enter “YES”, if the reinsurance was ceded to an assuming insurer that is domiciled in another state within the meaning of Section 2.C. of the NAIC Credit for Reinsurance Model Law (Model 785), as adopted in the reporting entity’s state of domicile and that, in addition, is described in Section [[insert]] of Actuarial Guideline [[insert no. here]] “Treatment of Reinsurance for Policies required to be Valued under Sections 6 and 7 of the NAIC Valuation of Life Insurance Policies Model Regulation in the Actuarial Opinion.”
Column 8 Reinsurer Maintaining Trust Fund (YES/NO)
Enter “YES”, if the reinsurance was ceded to an assuming insurer maintaining trust funds within the meaning of Section 2.D. of the NAIC Credit for Reinsurance Model Law (Model 785), as adopted in the reporting entity’s state of domicile.
Column 9 Reinsurance Required by Law (YES/NO)
Enter “YES”, if the reinsurance risk is located in jurisdictions where the reinsurance is required by law or regulation within the meaning of Section 2.F. of the NAIC Credit for Reinsurance Model Law (Model 785), as adopted in the reporting entity’s state of domicile.
Column 10 – Related Party Captive / SPV (YES/NO)
Enter “YES”, if the assuming insurer identified in Column 3 is a related party captive or special purpose vehicle.
Column 11 – Inception Date
Provide the inception date of the reinsurance ceding arrangement.
Column 12 – Statutory Reserve
Provide the dollar amount of the full statutory reserve amount for all XXX and AXXX products included in the ceded reinsurance contract.
Column 13 – XXX Statutory Policy Reserve Ceded
Provide the dollar amount of XXX statutory policy reserves ceded.
Column 14 – AXXX Statutory Policy Reserve Ceded
Provide the dollar amount of AXXX statutory policy reserves ceded.
SUPPLEMENTAL XXX/AXXX REINSURANCE EXHIBIT
PART 2 – TRANSACTIONS SUBJECT TO PART 2 DISCLOSURE
This exhibit is required to be filed no later than April 1.
Part 2 applies to all cessions identified in Part 1 except cessions as to which Column 4, 5, 6, 7, 8, or 9 is reported as “YES”. The terms “Primary Security Level”, “Primary Security” and “Other Security” shall have the meaning given to them in Actuarial Guideline [[insert no. here]] “Treatment of Reinsurance for Policies required to be Valued under Sections 6 and 7 of the NAIC Valuation of Life Insurance Policies Model Regulation in the Actuarial Opinion” Except as otherwise provided in Columns 9 and 16, all asset values to be determined in a manner consistent with valuation requirements applicable to reinsurance collateral under the NAIC Accounting Practices and Procedures Manual.
Column 1 – Cession ID
Enter a unique Cession ID for each line (01 – 99).
Column 2 – NAIC Company Code
Provide the NAIC code of the assuming insurer.
Column 3 – ID Number
Enter one of the following as appropriate for the assuming insurer being reported on the schedule. See the Schedule S General Instructions for more information on these identification numbers.
Federal Employer Identification Number (FEIN)
Alien Insurer Identification Number (AIIN)
Certified Reinsurer Identification Number (CRIN)
Column 4 – Name of Company
Provide the name of the assuming insurer.
Column 5 – Inception Date or Prior Year Annual Statement Date
Provide the latter of the inception date of the cession or the annual statement date immediately preceding the current annual statement date.
As of Inception Date or Prior Year’s Annual Statement
Column 6 – Reserve Credit Taken
State the dollar amount of the reserve credit taken by the reporting entity as of the date reported in Column 5.
Column 7 – Primary Security Level
State the Primary Security Level applied to the statutory policy reserves as of date reported in Column 5.
Column 8 – Primary Security
State the value as of the date reported in Column 5 of the Primary Security forms received by the reporting entity as collateral.
Column 9 – Primary Security Valuation by Reinsurer
If different than the amount stated in Column 8, state the value, as shown on the books of the assuming insurer, as of the date reported in Column 5 of the Primary Security forms received by the reporting entity as collateral.
Column 10 – Primary Security – Trust
State the value as of the date reported in Column 5 of any part of the collateral reported in Column 8 that is held in trust for the benefit of the reporting entity.
Column 11 – Primary Security –Funds Withheld
State the value as the date reported in Column 5 of any part of the collateral reported in Column 8 that is held by the reporting entity on a funds withheld basis or on a modified coinsurance basis.
Column 12 – Other Security
State the value as of the date reported in Column 5 of all collateral that is not reported in Column 8.
As of Current Year’s Annual Statement
Column 13 – Reserve Credit Taken
State the dollar amount of the reserve credit taken by the reporting entity as of the current annual statement date.
Column 14 – Primary Security Level
State the Primary Security Level applied to the statutory policy reserves as of the current annual statement date.
Column 15 – Primary Security
State the value as of the current annual statement date of the Primary Security forms received by the reporting entity as collateral.
Column 16 – Primary Security Valuation by Reinsurer
If different than the amount stated in Column 15, state the value, as shown on the books of the assuming insurer, as of the date reported in Column 15 of the Primary Security forms received by the reporting entity as collateral.
Column 17 – Primary Security Adjustment
If Column 14 is greater than Column 15, state the value as of the current annual statement date of any additional Primary Security received by the reporting entity as collateral to cover the difference.
Column 18 – Primary Security – Trust
State the value as of the current annual statement date of any part of the collateral reported in Column 15 or Column 16 that is held in trust for the benefit of the reporting entity.
Column 19 – Primary Security – Funds Withheld
State the value as of the current annual statement date of any part of the collateral reported in Column 15 or Column 17 that is held by the reporting entity on a funds withheld basis or on a modified coinsurance basis.
Column 20 – Other Security
State the value as of the current annual statement date of all collateral with respect to the transaction that is not reported in Columns 15 or 16.
SUPPLEMENTAL XXX/AXXX REINSURANCE EXHIBIT
PART 3 – COLLATERAL FOR ALL XXX/AXXX REINSURANCE TRANSACTIONS REPORTED ON PART 2
This exhibit is required to be filed no later than April 1.
Part 3 applies to all the cessions of identified in Part 2. The reporting entity should prepare a separate page for each Cession ID reported on Part 2. The reporting entity should also provide a Grand Total page.
For each Cession ID, the information regarding the Name of the Company; the NAIC Company Code; the ID Number; and the inception date or prior year annual statement date should match what was reported for those columns on Part 2.
All asset values are to be determined in a manner consistent with valuation requirements applicable to reinsurance collateral under the NAIC Accounting Practices and Procedures Manual.
The reporting entity shall report the amount of assets in which collateral supporting the cession may be held corresponding to the categories shown below:
Group or Category Line Number
Primary Security
Cash 0199999
NAIC 1 SVO-Listed Securities 0299999
NAIC 2 SVO-Listed Securities 0399999
NAIC 2 SVO-Listed Securities 0499999
NAIC 4 SVO-Listed Securities 0599999
NAIC 5 SVO-Listed Securities 0699999
NAIC 5 SVO-Listed Securities 0799999
Evergreen, Unconditional LOCs 0899999
Other Security
Cash 0999999
NAIC 1 SVO-Listed Securities 1099999
NAIC 2 SVO-Listed Securities 1199999
NAIC 3 SVO-Listed Securities 1299999
NAIC 4 SVO-Listed Securities 1399999
NAIC 5 SVO-Listed Securities 1499999
NAIC 6 SVO-Listed Securities 1599999
Other Investments Admissible per the NAIC AP&P Manual 1699999
Other LOCs 1799999
All Other Assets 1899999
Total 9999999
As of Inception Date or Prior Year’s Annual Statement
Column 1 – Assets
State the value as of the latter of the inception date of the cession or the annual statement date immediately preceding the current annual statement date for collateral held in each category identified. Report cash, SVO securities, and evergreen, unconditional LOCs held as Primary Assets separately from cash, SVO securities and evergreen, unconditional LOCs held as Other Security.
For the Grand Total page, the total for Column 3 should equal Part 2, Column 9 plus 12
Column 2 – Affiliate or Parental Guarantee (YES/NO)
Indicate as to any asset identified in Column 1 as to which an affiliate of the reporting entity has issued a guarantee.
As of Current Year’s Annual Statement
Column 3 – Assets
State the value as of the current annual statement date for collateral held in each category identified.
For the Grand Total page, the total for Column 3 should equal Part 2, Column 15 plus 19
Column 4 – Affiliate or Parental Guarantee (YES/NO)
Enter “YES”, if any asset identified in Column 3 as to which an affiliate of the reporting entity has issued a guarantee.
ANNUAL STATEMENT INSTRUCTIONS – LIFE, HEALTH, PROPERTY, FRATERNAL AND TITLE
APPENDIX
INSTRUCTIONS FOR USE OF BARCODES