NAIC Blanks Proposal

NAIC BLANKS (E) WORKING GROUP

Blanks Agenda Item Submission Form

DATE:02/15/2013
CONTACT PERSON:Peter Storms
TELEPHONE:(860) 836-2504
EMAIL ADDRESS:
ON BEHALF OF:
NAME:Peter Storms
TITLE:Senior Manager
AFFILIATION:Risk & Regulatory Consulting, LLC
ADDRESS:3 Farm Glen Blvd.
Farmington, CT 06032 / FOR NAIC USE ONLY
Agenda Item #2013-09BWG
Year2013
Changes to Existing Reporting[X]
New Reporting Requirement[]
REVIEWED FOR ACCOUNTING PRACTICES AND PROCEDURES IMPACT
No Impact[ X ]
Modifies Required Disclosure[]
DISPOSITION
[]Rejected For Public Comment
[]Referred To Another NAIC Group
[X]Received For Public Comment
[]AdoptedDate
[]RejectedDate
[]DeferredDate
[]Other (Specify)

BLANK(S) TO WHICH PROPOSAL APPLIES

[X]ANNUAL STATEMENT[]QUARTERLY STATEMENT

[X]INSTRUCTIONS[X]CROSSCHECKS[X]BLANK

[]Life and Accident & Health[X]Property/Casualty[]Health

[]Separate Accounts[]Fraternal[]Title

[]Other Specify

Anticipated Effective Date:Annual 2013

IDENTIFICATION OF ITEM(S) TO CHANGE

P&C Schedule F, Part 8 – Provision for Overdue Reinsurance – Title of the schedule, an additional column, some column headings and a column heading for the lines section.

REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE**

To (a)develop and report the Provision for Overdue Reinsurance by reinsurer rather than in aggregate,and (b) clarify a few aspects of the schedule.

The provisions established remain the same.

NAIC STAFF COMMENTS

Comment on Effective Reporting Date:

Other Comments:

______

**This section must be completed on all forms.Revised 6/13/2009

Detailed Description of Proposed Changes (Additions Underlined. Deletions Struckthrough.)

P&C Schedule F, Part 8:

Schedule Heading – Provision for Overdue Reinsurance and Total Provision for Reinsurance as of December 31, Current Year

Column 8 Heading – Other Miscellaneous Balances Payable

Column 9 Heading – Trust Funds and Other CollateralAllowed Offset Items

Column 10 Heading –Total Collateral and Offsets Allowed (Sum of Cols. 5 through 9 but not in excess of Col. 4)

Column 11 Heading –Uncollateralized Net Credit Taken (Col. 4 minus Col. 10)

Column 12 Heading –Greater of Col. 11 or Schedule F, Part 4, Cols. 8 + 9

Insert New Column 13 with Heading – Provision for Overdue Reinsurance (20% of Column 12)

Comment – This adds disclosure of the provision by reinsurer.

Add Total Provision for Reinsurance as a header before the lines section.

Delete line 1 and renumber the remaining lines.

New line 1(old line 2) – Schedule F, Part 8, Col. 13 Total (above)Line 1 x .20

Modify the computational portions of the other lines to take into account the change in line numbering.

Instructions – Revise as applicable.

ANNUAL STATEMENT BLANK – PROPERTY

SCHEDULE F – PART 8

Provision for Overdue Reinsurance and Total Provision for Reinsurance as of December 31, Current Year

1
Federal
ID
Number / 2
NAIC
Company
Code / 3
Name
of
Reinsurer / 4
Reinsurance
Recoverable
All Items / 5
Funds Held By
Company Under
Reinsurance Treaties / 6
Letters
of
Credit / 7
Ceded
Balances
Payable / 8
Other
Miscellaneous
Balances Payable / 9
Trust Funds and Other Collateral
Allowed
Offset Items / 10
Total Collateral and Offsets Allowed
(Sum of Cols. 5 through 9 but
not in
Excess of Col. 4) / 11
Uncollateralized Net Credit Taken (Col 4 minus
Col. 10) / 12
Greater of Col. 11 or
Schedule F - Part 4
Cols. 8 + 9 / 13
Provision for Overdue Reinsurance
(20% of Col. 12)
......
......
...... / ....
....
.... / ......
......
...... / ......
......
...... / ......
......
...... / ......
......
...... / ......
......
...... / ......
......
...... / ......
......
...... / ......
......
...... / ......
...... / ...... / ......
......
......
9999999 Totals
Total
Provision
For
Reinsurance
1.Total......
12.Schedule F, Part 8,Col 13 Total (above)Line 1 x .20......
23.Schedule F-Part 7, Col. 11......
34.Provision for Overdue Authorized Reinsurance (Lines 1 + 2 + 3)......
45.Provision for Unauthorized Reinsurance (Schedule F-Part 5, Col. 20 x 1000)......
56.Provision for Reinsurance Ceded to Certified Reinsurers (Schedule F-Part 6, Section 1, Col 23 x 1,000)......
67.Provision for Overdue Reinsurance Ceded to Certified Reinsurers (Schedule F-Part 6, Section 2, Col 15 x 1000)......
78.Provision for Reinsurance (Sum Lines 3 + 4 + 5 + 6 + 7) (Enter this amount on Page 3, Line 16)......

ANNUAL STATEMENT INSTRUCTIONS – PROPERTY

SCHEDULE F – PART 8

PROVISION FOR OVERDUE REINSURANCE AND

TOTAL PROVISION FOR REINSURANCE

AS OF DECEMBER 31, CURRENT YEAR

Column 4–Reinsurance Recoverable All Items

From Schedule F, Part 3, Column 15 multiplied by 1000 (for each reinsurer shown).

Amounts recorded should not be less than zero.

Column 5–Funds Held By Company Under Reinsurance Treaties

From Schedule F, Part 3, Column 19 multiplied by 1000 (for each reinsurer shown).

Column 7–Ceded Balances Payable

From Schedule F, Part 3, Column 16 multiplied by 1000 (for each reinsurer shown).

Column 8–Other Miscellaneous Balances Payable

From Schedule F, Part 3, Column 17 multiplied by 1000 (for each reinsurer shown).

Column 9–Trust Funds and Other Collateral Allowed Offset Items

Report trust funds and any other acceptable security.Any permissible items not included in Columns 5, 6, 7, or 8.

Column 10–Total Collateral and Offsets Allowed

Sum of Columns 5 thru 9 But Not in Excess of Column 4

Amounts recorded should not be less than zero.

Column 11–Uncollateralized Net Credit Taken

Column 4 Minus Column 10

Amounts recorded should not be less than zero.

Column 12–Greater of Column 11 or Schedule F – Part 4, Column 8 & 9

Amounts recorded should not be less than zero.

Column 13Provision for Overdue Reinsurance

20% of Column 12

Amounts recorded should not be less than zero

If the company’s experience indicates that a higher amount should be provided, such higher amount should be entered.

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