2021 Regulatory Update for Life and Property Casualty Companies

Virtual Training Seminar
6.5 CPE Credits Available
Presenters: Bruce Cromartie
September 28, 2021
9:00am Eastern
(8:00am Central)
October 1, 2020
9:00am Mountain
(8:00am Pacific)
Agenda
Agenda

9:00am – 9:15am

Welcome and Introductory Comments

9:15am – 10:30am

Update to 2021 NAIC Accounting Practices and Procedures Manual
This session addresses the changes to the NAIC Accounting Practices and Procedures Manual (APPM) as of March 2022 specific to Life and P&C companies including new Statements of Statutory Accounting Principles, amendments to current SSAPs, and new Interpretations adopted since the release of the March 2020 APPM including but not limited to changes to:

  • Ref No. 2019-24 - SSAP No. 71 – Policy Acquisition Costs and Commissions – Clarified statutory accounting guidance regarding commissions based on policy persistency requiring full recognition of funding liabilities incurred to date for commission expenses prepaid on behalf of insurer.
  • Ref No. 2019-34 - SSAP No. 25 – Affiliates and Other Related Parties - Clarifies that an ownership greater than 10% in a reporting entity results in a related party designation, regardless of any disclaimer of control or affiliation.
  • Ref No. 2020-22 - SSAP No. 26R – Bonds – Addresses the accounting treatment for perpetual bonds
  • Ref No. 2020-32 - SSAP No. 26R – Bonds- Expands called bond disclosures to include bonds terminated through a tender offer
  • Ref No. 2020-40 – Preamble – Clarifies definition and application of prescribed practices as referenced in the NAIC APPM

This session also addresses various exposure documents currently released by Statutory Accounting Principles Working Group.

10:30am – 10:45am

Break

10:45am – 11:45pm

2021 Annual Statement Update
This session provides an overview of the 2021 P&C and Life Annual Statements formats and filing requirements including changes to both the instructions and the format of the 2021 Annual Statements. This Chapter will focus on key reporting issues for the 2021 Annual Statements including, but not limited to the following items.

  • Added new Health Care Receivables Supplement to Life\Fraternal Annual Statement (Life Only).
  • Added definitions for Occupational Accident, Fiduciary Liability, Premises and Operations Professional Errors and Omissions Liability, Kidnap & Ransom Liability and Tuition Reimbursement Plans products to appropriate Line of Business (P&C Only).
  • Added questions to G.I. Part 1 regarding depository institution holding companies as it pertains to the Group Capital Calculation.
  • Added new Schedule Y, Part 3 to capture all entities with ownership greater than 10%.
  • Added line categories for Unaffiliated Certificates of Deposit and Exchange Traded Funds.
  • Changes to Summary Investment Schedule, Summary by Country and Schedule D, Part 1A (Sections 1 and 2) to reflect the additional line categories.
  • Changes to A&H Policy Experience Exhibit by adding new columns, removing lines distinguishing with and without contract reserves, added new product lines, and eliminated summary tables.

11:45pm – 12:15pm

2022 Blanks Working Group Update
This session provides an overview of 2022 P&C and Life Quarterly Statements and an update on current activities under discussion by the Blanks Working Group, including changes adopted and proposed for the 2022 Statutory Statements (Quarterly and Annual) and other issues currently under discussion by the Blanks Working Group.

12:15pm – 1:15pm

Lunch

1:15pm – 2:00pm

2021 Health Risk-Based Capital Update
This session provides an overview of the 2021 P&C and Life Capital RBC Formulas and addresses changes to the 2021 P&C and Life Formulasincluding changes to the instructions and to the format of the Formulas. This session also addresses other issues currently under discussion that may affect the 2022 P&C and Life RBC Formulas.

2:00pm – 2:45pm

2021 Investment Update
This session addresses changes to the December 2020 NAIC Purposes and Procedures Manual of the NAIC Investment Analysis Office and other proposals that may be adopted for 2021 and 2022.

2:45pm – 3:00pm

Break

3:00pm – 3:45pm

Financial Regulatory Issues Update
This session addresses financial regulatory issues impacting health insurance companies that either have been adopted or are under discussion by the NAIC. This session will focus on activities having taken place at the 2021 NAIC Spring and Summer National Meetings with a preview of activities to take place at the NAIC 2021 Fall National Meeting.

3:45pm – 4:00pm

Final Questions and Answers