Seminar Agenda - Millennium Seminar Services, LLC

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 1 Day 2 Day 3 Day 4

Day 1

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.
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: Underwriting and Investment Exhibit, Part 1-Premiums Exhibit of Premiums, Utilization, and Enrollment Schedule T – Premiums and Other Considerations Exhibit 1 – Enrollment by Product Type Page 4 – Statement of Revenue and Expenses (in part)
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: Schedule S – Part 1 – Section 2 – Reinsurance Assumed Schedule S – Part 2 – Reinsurance Recoverable on Paid and Unpaid Losses Schedule S – Part 3 – Section 2 – Reinsurance Ceded Schedule S – Part 4 – Unauthorized Reinsurance Ceded Schedule S – Part 5 – Reinsurance Ceded to Certified Reinsurers Schedule S – Part 6 – Five-Year Exhibit of Reinsurance Ceded Schedule S – Part 7 – Restatement of Balance Sheet to Identify Net Credit for Ceded Reinsurance
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 2

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: Schedule D – Part 1 – Long-Term Bonds Schedule D – Part 2 – Section 1 – Preferred Stock Schedule D – Part 2 – Section 2 – Common Stock Schedule D – Parts 3, 4 and 5 – Acquisitions and Sales Schedule D – Summary by Country Schedule D – Verification between Years Schedule D – Schedule D, Part 1A

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: Schedule DA – Short-Term Investments Schedule E – Part 1 – Cash Schedule E – Part 2 – Cash Equivalents Schedule E – Part 3 – Special Deposits
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: Schedule D – Part 6 – Valuation of Subsidiary, Controlled, or Affiliated Companies 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

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: Schedule A – Part 1 – Real Estate Owned Schedule A – Part 2 – Real Estate Acquired Schedule A – Part 3 – Real Estate Sold Schedule BA – Part 1 – Other LT Invested Assets Owned Schedule BA – Part 2 – Other LT Invested Assets Acquired Schedule BA – Part 3 – Other LT Invested Assets Sold Schedules A, BA – Verification between Years
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: Exhibit of Net Investment Income Exhibit of Capital Gains (Losses) Summary Investment Schedule Supplemental Investment Risks Interrogatories

Day 3

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: Asset Page Analysis of Nonadmitted Assets Exhibit 2 – Accident and Health Premiums Due and Unpaid Exhibit 3 – Health Care Receivables Exhibit 3A – Analysis of Health Care Receivables Collected and Accrued Exhibit 5 – Amounts Due From Parent, Subsidiaries and Affiliates Exhibit 8 – Furniture and Equipment Owned
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: Underwriting and Investment Exhibit, Part 2A – Claim Liability End of Current Year Underwriting and Investment Exhibit, Part 2D – Aggregate Reserve for A&H Contracts Exhibit of Premiums, Utilization, and Enrollment
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: Underwriting and Investment Exhibit, Part 2 – Claims Incurred During the Year Underwriting & Investment Exhibit, Part 2B – Analysis of Claims Unpaid Prior Year – Net of Reinsurance Underwriting and Investment Exhibit, Part 2C – Development of Incurred Claims Exhibit 7 – Part1 – Summary of Transactions with Providers Exhibit 7 – Part 2 – Summary of Transactions with Intermediaries
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: Page 3 – Liability Page Exhibit 4 – Claims Payable (Reported and Unreported) Exhibit 6 – Amounts Due To Parent, Subsidiaries and Affiliates
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: Underwriting and Expense Exhibit Part 3 – Analysis of Expenses Page 4 – Statement of Revenue and Expenses Capital and Surplus Account Cash Flow Analysis of Operations by Lines of Business
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 4

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: Jurat Page Five-Year Historical Data Management's Discussion and Analysis Supplemental Compensation Exhibit Accident and Health Policy Experience 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
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. Supplemental Health Care Exhibit – Parts 1, 2, and 3
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

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