Seminar Agenda - Millennium Seminar Services, LLC

Introduction to Health Statutory Accounting and Reporting

Virtual Training Seminar
September 15-17, 2021
All Times Eastern Standard Time
Presenters: Bruce A. Cromartie/Karen Foster

Day 1

Day One

10:15am – 10:30am	Introductory Comments

10:30am – 11:45am	Introduction to Health Insurance Regulation
	This session provides an overview of the health insurance industry, the types of health entities, how they are organized and function, and an overview of key state and federal regulatory requirements. This session also discussesthe function and structure of the regulatory agencies that have oversight of health entities including a discussion of the financial regulatory framework, the structure and function of state insurance departments and an overview of NAIC and its function.
11:45am – 12:00pm	Break

12:00pm – 1:15pm	Introduction to Statutory Accounting
	This session provides an introduction to statutory accounting, its concepts, characteristics, similarities, and differences from Generally Accepted Accounting Principles. This session also focuses on Statutory Accounting Practices and Procedures including its history, background, statement of concepts and statutory hierarchy. Also included in this discussion is an overview of the NAIC structure responsible for maintaining and developing new statutory accounting doctrine. This session also provides a discussion and analysis of the Statements of Statutory Accounting Principles (SSAP) that provide the foundation and fundamental concepts that provide the basis for statutory accounting and reporting. The SSAPs discussed in this session include: Statutory Accounting Preamble SSAP No. 1 – Disclosure of Accounting Policies, Risks, & Uncertainties and Other Disclosures SSAP No. 3 – Accounting Changes and Correction of Errors SSAP No. 4 – Definition of Assets and Nonadmitted Assets SSAP No. 5R – Liabilities, Contingencies, and Impairment of Assets SSAP No. 9 – Subsequent Events SSAP No. 64 – Offsetting and Netting of Assets and Liabilities
1:15pm – 2:15pm	Introduction to Statutory Reporting
	This session provides a discussion of statutory financial reporting requirements, an overview of the Health Annual Statement, maintenance of the statutory financial statements, a layout of the Health Statement, and an overview of state filing requirements.
2:15pm – 3:00pm	Break

3:00pm – 4:15pm	Accounting and Reporting for A&H Premium Income
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting and reporting for accident and health premiums. This session provides guidance on understanding concepts such as written, advance, earned and unearned premiums. This session provides an overview of the related Schedules and Exhibits for reporting and allocating premium income. The following SSAPs are addressed in this session: SSAP No. 47 – Uninsured Plans SSAP No. 50 – Classifications and Definitions of Insurance or Managed Care Contracts In Force SSAP No. 54R – Individual and Group A&H Contracts, Revised SSAP No. 66 – Retrospectively Rated Contracts SSAP No. 107 – Accounting for the Risk Sharing Provisions of the Affordable Care Act The Schedules and Exhibits covered in this session include: Underwriting and Investment Exhibit, Part 1 – Premiums Exhibit of Premiums, Enrollment and Utilization Schedule T – Premiums and Other Considerations
4:15pm – 5:15pm	Accounting and Reporting for Reinsurance
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting, and reporting of reinsurance. This session also addresses the nature and purpose of reinsurance; provides a basic understanding of reinsurance concepts, terminology and the accounting for different types of reinsurance. An overview of Schedule S is also provided. The following SSAPs are addressed in this session: SSAP No. 61R – Life, Deposit-Type, and Accident and Health Reinsurance SSAP No. 62R – Property and Casualty Reinsurance The Schedules and Exhibits covered in this session include: Schedule S – Reinsurance (All Parts)

Day 2

10:15am – 11:00am	Regulatory Framework for Invested Assets
	This session provides an overview of the regulation of insurers’ invested assets including a discussion of the regulatory framework for invested assets, the NAIC Model Investment Law, an overview of state investment regulations, and an overview of the Purposes and Procedures Manual of the NAIC Investment Analysis Office.

11:00am – 11:45am	Accounting and Reporting for Cash, Cash Equivalents and Short-Term Investments
	This chapter provides a discussion and analysis of SSAP No. 2R which provides the basis of accounting, recognition and reporting for cash, cash equivalents and short-term investments. This chapter also addresses the reporting for cash as addressed in Schedule E – Parts 1 and 2 and Schedule DA for reporting short-term invested assets. The SSAPs discussed in this chapter include: SSAP No. 2R – Cash, Drafts, and Short-Term Investments SSAP No. 103R – Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities The Schedules, Exhibits, and Other Required Filings covered in this chapter include: Schedule E – Parts 1 and 2 Schedule DA – Short-Term Investments Schedules DA, E – Verification between Years
11:45am – 12:00pm	Break

12:00pm – 1:15pm	Accounting and Reporting For Fixed Income and Equity Securities
	This chapter provides a discussion and analysis of the SSAPs that provide the basis of accounting, recognition and reporting of fixed income and equity securities, This chapter also addresses the accounting, reporting and disclosure requirement related to investment income and provides an overview of Schedule D and other related Investment Schedules and Exhibits. The SSAPs discussed in this session include: SSAP No. 26R – Bonds, Excluding Loan-Backed and Structured Securities SSAP No. 30 – Investments in Common Stock SSAP No. 32R – Investments in Preferred Stock SSAP No. 43R – Revised Loan-Backed and Structured Securities The Schedules, Exhibits, and Other Required Filings covered in this session include: Schedule D – All Parts Exhibit of Net Investment Income Exhibit of Capital Gains (Losses) Summary Investment Schedule Supplemental Investment Risk Interrogatories
1:15pm – 2:15pm	Accounting and Reporting for Real Estate and Other Long-Term Invested Assets
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting, recognition and reporting for other invested assets including real estate, joint ventures, partnerships, limited liability companies, surplus notes, other miscellaneous long-term invested assets. The SSAPs discussed in this session include: SSAP No. 21 – Other Admitted Assets SSAP No. 40R – Real Estate Investment, Revised SSAP No. 41R – Surplus Notes SSAP No. 48 – Joint Ventures, Partnerships, and Limited Liability Companies The Schedules, Exhibits, and Other Required Filings covered in this session include: Schedule A – All Parts Schedule BA – All Parts

2:15pm – 3:00pm	Break

3:00pm – 4:00pm	Accounting and Reporting for Investments in SCA entities & Related Party Transactions
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting; recognition and reporting of affiliated invested assets and the accounting and reporting for related party transactions. This session also provides an overview of the related Schedules and Exhibits for reporting affiliated transactions. The SSAPs discussed in this session include: SSAP No. 25 – Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities The Annual Statement Pages and Exhibits covered in this session include: Schedule D – Part 6 Schedule Y – Part 1 – Organization Chart – Information Concerning Activities of Insurer Schedule Y – Part 1A – Detail of Insurance Holding Company System Schedule Y – Part 2 – Summary of Insurer's Transactions with Any Affiliates Schedule Y – Part 3 – NEW
4:00pm – 5:15pm	Accounting and Reporting for Other Assets and Non-Admitted Assets
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting, and recognition of various assets, the admissibility of such assets and the accounting and reporting of nonadmitted assets. A general discussion will also highlight the state requirements on the admissibility of these assets. This session also addressesthe accounting and reporting for assets and nonadmitted assets as defined under statutory accounting. This session will provide an overview of the Pages, Schedules and Exhibits for reporting admitted and non-admitted assets. The SSAPs discussed in this session include: SSAP No. 4 – Assets and Nonadmitted Assets SSAP No. 6 – Uncollected Premiums Balances, Bills Receivable for Premiums, and Amounts Due From Agents and Brokers SSAP No. 16R – EDP Equipment and Software SSAP No. 19 – Furniture, Fixtures and Equipment and et al SSAP No. 20 – Other Nonadmitted Assets SSAP No. 21 – Other Admitted Assets SSAP No. 29 – Prepaid Expenses SSAP No. 68 – Business Combinations and Goodwill SSAP No. 73 – Health Care Delivery Assets SSAP No. 84 – Certain Healthcare Receivables SSAP No. 101 – Income Taxes, Revised The Annual Statement Pages and Exhibits covered in this session include: Page 2 – Asset Page Exhibit of Non-Admitted Assets Exhibit 2– Accident and Health Premiums Due and Unpaid Exhibit 3 – Health Care Receivables Exhibit 5 – Amounts Due From Parent, Subsidiaries and Affiliates Exhibit 8 – Furniture and Equipment Owned

Day 3

10:15am – 11:00am	Accounting and Reporting for A&H Policy Reserves
	This session provides a discussion and analysis and analysis of the SSAPs that provide the basis of accounting, and recognition for accident and health policy reserves. The session includes a discussion of policy reserves, advance premiums, premium deficiency reserves, and unearned premiums. This session will also provide an overview of the instructions and preparation of the support exhibits for A&H policy reserves. Some of the SSAPs discussed in this session include: SSAP No. 54R – Individual and Group A&H Contracts, Revised SSAP No. 66 – Retrospectively Rated Contracts SSAP No. 107 – Accounting for the Risk Sharing Provisions of the Affordable Care Act The Schedules and Exhibits covered in this session include: Underwriting and Investment Exhibit, Part 2D – Aggregate Reserve for Accident and Health Contracts
11:00am – 12:00pm	Accounting and Reporting for A&H Reserves
	This session provides a discussion and analysis and analysis of the SSAPs that provide the basis of accounting, and recognition for claims reserves and liabilities, collectively referred to as “Accident and Health (A&H) reserves”. The session also includes a discussion of claims unpaid, claim reserves, and claims adjustment expense. This session will also provide an overview of the instructions and preparation of the support exhibits for A&H reserves. The SSAPs discussed in this session include: SSAP No. 55 – Unpaid Claims, Losses, and Loss Adjustment Expenses The Schedules and Exhibits covered in this session include: Underwriting and Investment Exhibit, Part 2 – Claims Incurred During the Year Underwriting and Investment Exhibit, Part 2A – Claim Liability End of Current Year Underwriting and Investment Exhibit, Part 2B – Analysis of Claims Unpaid Prior Year – Net of Reinsurance Underwriting and Investment Exhibit, Part 2C – Development of Incurred Claims
12:00pm – 12:15pm	Break


12:15pm – 12:45pm	Accounting and Reporting for Liabilities and Contingencies
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting, and recognition of liabilities other than policy and claim reserve liabilities. This session also will provide a discussion and analysis of the SSAPs that provide the foundation and fundamental concepts for the accounting, recognition and reporting of various liabilities. This session also will provide an overview of the instructions and preparation of the Liability Page and other support exhibits. The SSAPs discussed in this session include: SSAP No. 5R – Liabilities, Contingencies and Impairment of Assets SSAP No. 11 – Postemployment Benefits and Compensated Absences SSAP No. 15 – Debt and Holding Company Obligations SSAP No. 35R – Accounting for Guaranty Funds and Other Assessments SSAP No. 67 – Other Liabilities SSAP No. 92 – Postretirement Benefits Other Than Pensions SSAP No. 102 – Pensions The Annual Statement Pages and Exhibits covered in this session include: Page 3 – Liability Page Exhibit 4 – Claims Payable (Reported and Unreported) Exhibit 6 – Amounts Due To Parent, Subsidiaries and Affiliates
12:45pm – 1:30pm	Accounting and Reporting for Administrative Expenses
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting, recognition and allocation of administrative expenses. An extended discussion will also address the accounting and reporting of cost containment expenses. This session also will provide an overview of the related Schedules and Exhibits for reporting administrative expenses. The SSAPs discussed in this session include: SSAP No. 35R – Guaranty Funds and Other Assessments SSAP No. 55 – Unpaid Claims, Losses, and Loss Adjustment Expenses SSAP No. 70 – Allocation of Expenses SSAP No. 106 – Affordable Care Act Assessments SSAP No. 107 – Accounting for the Risk Sharing Provisions of the Affordable Care Act The Annual Statement Pages and Exhibits covered in this session include: Underwriting and Expense Exhibit Part 3 – Expenses
1:30pm – 2:15pm	Accounting and Reporting for Revenue, Expenses, Capital and Surplus
	This session provides a discussion and analysis of the SSAPs that provide the basis of accounting and recognition for statutory income and capital and surplus including an overview of the Statement of Revenue and Expenses, Cash Flow and other related pages. The SSAPs discussed in this session include: SSAP No. 72 – Surplus and Quasi-reorganizations SSAP No. 41R – Surplus Notes, Revised The Annual Statement Pages and Exhibits covered in this session include: Page 3 – Capital and Surplus Page 4 – Statement of Revenue and Expenses Page 5 – Capital and Surplus Account Page 6 – Cash Flow Statement Page 7 – Analysis of Operations by Line of Business
2:15pm – 3:00pm	Break

3:00pm – 4:00pm	Reporting for Supplemental Filings and Other Statement Pages – Part 1
	This session provides an overview of other operational and financial exhibits and schedules found in the Health Annual Statement. The Pages and Exhibits covered in this Chapter include: Jurat Page Five-Year Historical Data Notes to Financial Statements General Interrogatories Management's Discussion and Analysis Supplemental Compensation Exhibit Life, Health & Annuity Guaranty Association Model Act Assessment Base Reconciliation Exhibit Adjustments to the Life, Health & Annuity Guaranty Association Model Act Assessment Base Reconciliation Exhibit
4:00pm – 5:00pm	Reporting for Supplemental Schedules – Part 2
	This session continues with an overview of other Supplemental Filings found in the Health Annual Statement. The Supplemental Schedules covered in this Chapter include: Health Risk-Based Capital Formula Supplemental Health Care Exhibit Accident and Health Policy Experience Exhibit
5:00pm – 5:15pm	Final Questions and Answers

Introduction to Health Statutory Accounting and Reporting

Virtual Training Seminar September 15-17, 2021 All Times Eastern Standard Time Presenters: Bruce A. Cromartie/Karen Foster

Day One

Virtual Training Seminar
September 15-17, 2021
All Times Eastern Standard Time
Presenters: Bruce A. Cromartie/Karen Foster