2020 Health Annual Statement Preparation
Virtual Training Seminar
28.5 CPE Credits Available
Presenters: Colleen Gingrich/Bruce A. Cromartie
December 7-10, 2020
10:30am Eastern
( 9:30am Central | 8:30am Mountain | 7:30am Pacific )
Day One
Monday, December 7, 2020
10:30am – 10:45am |
Welcome and Introductory Comments |
10:45am – 12:00pm |
Introduction to Statutory Accounting |
This session will provide an introduction to statutory accounting, its concepts, characteristics, similarities, and differences from Generally Accepted Accounting Principles. This session will focus 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 will provide 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. |
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12:00pm – 1:00pm |
Lunch |
1:00pm – 2:15pm |
Introduction to Statutory Reporting and Overview of 2020 Health Annual Statement |
This Chapter provides an overview of the 2020 Health Annual Statement format and filing requirements including changes to both the instructions and the format of the 2020 Annual Statement. The Chapter also provides guidance on the initial preparations necessary for filing including transitioning from GAAP to SAP for reporting purposes; developing a SAP trial balance; and identifying key differences between SAP and GAAP accounting and reporting. | |
2:15pm – 3:30pm |
Reporting for Accident & Health Premiums |
This Chapter provides instructions on the preparation of the various exhibits used to report premium income. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for premium income. The Schedules and Exhibits covered in this Chapter include:
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3:30pm – 3:45pm |
Break |
3:45pm – 5:00pm |
Reporting for Reinsurance |
This Chapter provides instructions on the preparation of the Schedule S - Reinsurance. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for reinsurance including a discussion basic reinsurance concepts and terminology. The Schedule S Parts covered in this Chapter include:
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5:00pm – 6:00pm |
Overview of Accounting and Reporting for Invested Assets |
This Chapter provides an introduction on the preparation of the various investment schedules and related pages in the Health Annual Statement including a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for invested assets. This Chapter also provides an overview of the regulation of insurers’ invested assets including a discussion of the regulatory framework for invested assets, an overview of the NAIC’s Capital Markets and Investment Analysis Office and a discussion of NAIC designations and filing exemption requirements.
This session also will provide an overview of the Purposes and Procedures Manual of the NAIC Investment Analysis Office including changes to the 2019 Manual as well as other investment issues currently under discussion by the NAIC’s Valuation of Securities Task Force. |
Day Two
Tuesday, December 8, 2020
10:30am – 11:45am |
Reporting for Investments in Fixed Income and Equity Securities – Bonds, Preferred and Common Stock |
This Chapter provides instructions for completing Schedule D Parts 1, 2, 3, 4, 5, and other related supplemental investment schedules pertaining to fixed income and equity investments. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for these invested assets. The Schedules covered in this Chapter include:
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11:45am – 12:30pm |
Reporting for Investments in Cash, Cash Equivalents, and Short-Term Investments |
This Chapter provides instructions for completing Schedule D Part 1, Section 2, Schedules DA, and E This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for these invested assets. The Schedules covered in this Chapter include:
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12:30pm – 1:30pm |
Lunch |
1:30pm – 2:30pm |
Reporting for Investments in Subsidiary, Controlled and Affiliated Investments |
This Chapter provides instructions for completing Schedule D Part 6 Sections 1 and 2 and Schedule Y. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for investments in subsidiary, controlled and affiliated companies. The Schedules covered in this Chapter include:
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2:30pm – 3:45pm |
Reporting for Investments in Real Estate, and Other LT Invested Assets |
This Chapter provides instructions for completing Schedules A, BA, and other related supplemental investment schedules. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for the various investment schedules. The Schedules covered in this Chapter include:
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3:45pm – 4:00pm |
Break |
4:00pm – 5:30pm |
Reporting for Other Investment Schedules |
This Chapter provides instructions for completing of other schedules and pages of the annual statement blank related to invested assets. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for the various investment schedules. The Pages included in this Chapter include:
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Day Three
Wednesday, December 9, 2020
10:30am – 11:45am |
Reporting for the Asset Page |
This Chapter provides instructions on the preparation of Page 2, the Asset Page and the support exhibits for other assets including premium receivables, healthcare receivables, furniture and equipment, healthcare delivery assets, and related party transactions. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for these assets. The Pages and Exhibits covered in this Chapter include:
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11:45am – 12:30pm |
Reporting A&H Claim Liabilities and Aggregate Reserves |
This Chapter provides instructions on the preparation of the U&I Exhibits used to report claim liabilities, and aggregate reserves consisting of claim and policy reserves. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for these reserves. The Parts included in this Chapter include:
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12:30pm – 1:30pm |
Lunch |
1:30pm – 2:45pm |
Reporting for and Analyzing Incurred A&H Claim Liabilities and Reserves |
This Chapter provides instructions on the preparation of the U&I Exhibits used to account for incurred claims and the analysis of claim liability and claim reserves. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for claim liabilities. The Parts and other Exhibits included in this Chapter include:
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2:45pm – 3:30pm |
Reporting for the Liability Page |
This Chapter provides instructions on the preparation of Page 3, the Liability Page and other miscellaneous supporting exhibits for liabilities. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for liabilities other than claim liabilities. The Pages and Exhibits covered in this Chapter include:
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3:30pm – 3:45pm |
Break |
3:45pm – 5:00pm |
Reporting Revenue, Expenses and Capital and Surplus |
This Chapter provides instructions on the preparation of the “Front Financial” Statements and the U&I Exhibit – Part 3. This Chapter also provides a cursory overview of the statutory accounting principles that provide the basis of accounting and reporting for administrative expenses and capital and surplus. The Pages and Exhibits covered in this Chapter include:
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5:00pm – 5:45pm |
Preparation of the 2020 General Interrogatories |
This Chapter provides instructions on the completion of the 2020 General Interrogatories This Chapter covers both the General and Specific Interrogatories in the Health Annual Statement with emphasis on changes to the 2020 General Interrogatories. |
Day Four
Thursday, December 10, 2020
10:30am – 11:45am |
Preparation of the 2020 Notes to Financial Statements |
This Chapter provides instructions on the completion of the 2020 Notes to the Financial Statements. This Chapter also provides a cursory overview of the statutory accounting principles that provide the disclosure requirements for reporting the Notes to the Financial Statements and emphasis on changes to the 2020 Notes. | |
11:45am – 12:45pm |
Preparation of Other Miscellaneous Schedules and Exhibits |
This Chapter provides instructions on the preparation of other operational and financial exhibits and schedules found in the Annual Statement. The Pages and Exhibits covered in this Chapter include:
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12:45pm – 1:45pm |
Lunch |
1:45pm – 2:45pm |
Preparation and Filing 2020 Supplemental Health Care Exhibit |
This Chapter provides an overview of the preparation and filing of the 2020 Supplemental Health Care Exhibit (SHCE). This Chapter also covers changes to the 2020 SHCE and other reporting requirements.
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2:45pm – 3:30pm |
Overview and Preparation of the 2021 Health Quarterly Statement |
This Chapter will provide an overview and guidance on the preparation of the 2021 Health Quarterly Statement. This Chapter will also address changes currently adopted for the 2021 Health Annual Statement. | |
3:30pm – 3:45pm |
Break |
3:45pm – 4:00pm |
2020 Annual Statement Filing Requirements |
This Chapter provides guidance on the final preparations necessary for filing the 2020 Health Statement with the domiciliary state and the NAIC including a discussion of the State Checklist, Transmittal Letter, Filing Affidavit, etc. | |
4:00pm – 5:30pm |
2020 Health RBC Preparation and Filing |
This Chapter provides instructions on the preparation of the 2020 Health Risk-Based Capital Formula including an overview of the NAIC Health RBC Formula and the companion Health Organizations RBC Model Law. The Chapter will address how the different risks are laid out in the Health RBC Formula and how annual statement reporting affects the RBC Formula preparation. | |
5:30pm – 5:45pm |
Adjournment |