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2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

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Page 1: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015 Reporting Updates

Tuesday / December 15, 2015

1pm Central / 2pm Eastern

Page 2: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Learning Objectives

• Describe the reporting changes for the exhibits and schedules of the annual statement filing.

• Explain the reporting changes to the Notes to Financial Statement and identify the related SSAP(s).

• Identify the common reporting issues. • Identify the future issues that may impact reporting.

Page 3: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Mary Caswell

NAIC Data Quality Manager

–Manages Data Quality Unit –Supports Blanks Working Group –Supports Health Reform Solvency Impact Subgroup –Supports Investment Reporting Subgroup

• Joined NAIC in August 2000• MBA

• Contact email information: [email protected]

Page 4: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Adopted Changes

2014-19BWG – General Interrogatories, Part 2 reference and 5 Year Historical

reference for statutory minimum capital and surplus.

Health Blank:

Changes the reference for Line 11 from “minimum net worth” to “statutory minimum capital and surplus.”

Page 5: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-20BWG – Note 32 & 34

Change to correct inconsistencies in the use of “market value” and “fair value”.

The separate accounts disclosure, Note 34 change:

Reserves by withdrawal characteristics, i.e., whether or not for the separate account:

 • Subject to discretionary withdrawal including the categories of:

– Fair Market value adjustment– Withdrawal at book value without market value adjustment and with or without

current surrender charge of 5% or more– At fair value– Withdrawal at book value without market value adjustment and with current

surrender charge of 5% or less• Not subject to discretionary withdrawal

Page 6: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-01BWG & 2015-02BWG

2015-01BWG – Remove barcode listing form lists from

barcode instructions in the appendix.

2015-02BWG – Supplemental Health Care Exhibit – Eliminate the Aggregate 2% Rule Column for Parts 1 & 2.– Replace with a column to capture Medicare Advantage Part

C Plans and Medicare Part D Stand Alone Plans which are no longer excluded by statute.

 

Page 7: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-03BWG – Property Blank & Health Blank Supplements

Property Line of Business Appendix•Consolidating lines of business definitions and added some definitions.

– Deleted from Exhibit of Premiums and Losses – Added to the Appendix (examples:)

• Occurrence, Claims Made

Commercial Multi-peril: Builders’ Risk Policies, Business-owners, Commercial Package Policy, Manufacturers Output

Policies, E-Commerce, Difference in Conditions (DIC)

Page 8: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Definitions – Inland Marine

• Animal Mortality• EDP Policies• Pet Insurance Plans• Communication Equipment (Cellular Telephones)• Event Cancellation• Travel Coverage• Boat owners/Personal Watercraft• Other Commercial Inland Marine• Other Personal Inland Marine

 

Page 9: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-04BWG - Title Blank

Title Insurance 5 Year Historical Page (From Parts 2 & 3 of Scheduled P)

•Add one year and two year loss development lines–Development in estimated losses and ALAE on

policies (claims) effective before current year –Percent of such development to policyholders' surplus

of prior year end

Page 10: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Polling Question

# 1

10

Generally disclosure changes to the annual and quarterly filings Notes to Financial Statement are driven by changes in the SSAPs. True ____ False____

Page 11: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

U&I, Part 2B – Health Blank

2015-05BWG • Columns 1 through 4, line 10 of U&I, Part 2B should equal health care receivables

on Exhibit 3, Columns 6 and Column 7

(excluding health care receivables, such as loans or advances to non-related party hospitals, established as prepaid assets that are not expensed until the related claims have

been received

from the provider.)

• Note U&I, Part 2B is reported on a “net of reinsurance basis”, Exhibit 3 is reported “gross of reinsurance”.

 • Crosschecks added to gain consistency where possible.

Page 12: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-06BWG – Note 11B, FHLB

•Add crosschecks to the illustrations data captured for Note 11B to clarify the inclusion of Class A and B membership stock not eligible for redemption.

  1 2 Eligible for Redemption

Membership Stock

Current Year Total

(2+3+4+5+6)Not Eligible for

Redemption

3

Less Than 6 Months

46 months

to Less Than 1 year

5

1 to Less Than 3 Years

6

3 to 5 Years1. Class A2. Class B

b. Membership Stock (Class A and B) Eligible and Not Eligible for Redemption

11B(2)b1 Current Year Total (Column 1) should equal 11B(2)a1(a) Total (Column 1)11B(2)b2 Current Year Total (Column 1) should equal 11B(2)a1(b) Total (Column 1)

Page 13: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-07BWG – Schedule A, Part 1 / SSAP 40R

• Modify the instructions for Schedule A, Part 1 to reflect the reporting of real estate owned by a LLC on Schedule A if it meets the requirements set forth in SSAP 40R, Real Estate Investments.

• Adds a code “!” to Schedule A, Part 1, to identify all single real estate property wholly-owned by an LLC that meets the criteria set forth in SSAP No. 40R.

Page 14: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Cash Flow 2015-08BWG/ SSAP 69

Cash Flow instructions - to reflect the inclusion of only cash transactions. Reconciliation of investment activity.

Although non-cash items are included for reconciliation purposes, the Statement of Cash Flow shall only include transactions involving cash.

In addition to excluding the lines that are explicitly non-cash items (e.g., change in admitted assets) from what is reported in the Statement of Cash Flow, adjustments are necessary to remove non-cash acquisitions or disposals.

Page 15: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

SSAP 69 guidance change

Page 16: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-09BWG -Note 5A, Mortgage Loans/SSAP 37

8) Mortgage Loans Derecognized as a Result of

Foreclosure:

 

Current Year

a. Aggregate amt of mortgage loans derecognized $

b. Real estate collateral recognized $

c. Other collateral recognized $

d. Receivables recognized from a government

guarantee of the foreclosed mortgage loan $

Page 17: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-11BWG – Note 1, Significant Accounting Policies/ SSAP 1

D. Going Concern 

Provide disclosures regarding any going concerns of the company or plans for the entity’s ability to continue as a going concern.   

(1) If doubt about an entity’s ability to continue as a going concern is

alleviated, the reporting entity shall disclose in the notes to the financial

statements the following information:

a. Principal conditions and events that raised substantial doubt about the

entity’s ability to continue as a going concern (before consideration of

management’s plans).

b. Management’s evaluation of the significance of those conditions or events

in relation to the entity’s ability to meet its obligations.

c. Management’s plans that alleviated substantial doubt about the entity’s

ability to continue as a going concern.

Page 18: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-11BWG – Note 1/SSAP 1

(2) If substantial doubt is not alleviated, the entity should indicate such indicating that there is substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued.

Disclose management’s plans to mitigate the conditions or events causing the doubt about the entity’s ability to continue as a going concern.

(3) Going concern evaluation and disclosures are required for both interim and annual financial statements and in subsequent annual or interim reporting periods to which the condition continues. In these subsequent periods the disclosures should become more extensive as additional information becomes available.

(4) For the period in which substantial doubt no longer exists (before or after consideration of management plans), an entity shall disclose how the relevant conditions or events were resolved.

Page 19: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-12BWG – Note 5G, LIHTC / SSAP 93

(2) The amount of low-income housing tax credits

and other tax benefits recognized during the

years presented.

 

(3) The balance of the investment recognized in the

statement of financial position for the reporting

period(s) presented.

Page 20: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-13BWG – Cybersecurity Insurance (Property)

Stand-alone Policies

Number of Claims Reported

Direct Premiums Direct Losses Adjusting and Other Expenses

1First Party

2Third Party

3Written

4Earned

5Paid

6Incurred 7

Paid8

Incurred    $ $ $ $    

Direct Defense and Cost Containment

Number of Policies in Force

9Paid

10Incurred

11Claims Made

12Occurrence

$ $    

Page 21: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-13BWG – Cybersecurity Insurance

Part of a package policy:

Number of Claims Reported

Cybersecurity Insurance Direct Losses

Cybersecurity Insurance Adjusting and Other

Expenses

1First Party

2Third Party

3Paid

4Case

Reserves5

Paid

6Case

Reserves    $ $ $ $

Cybersecurity Insurance Direct Defense and Cost Containment

Number of Policies in Force

7Paid

8Case Reserves

9Claims Made

10 Occurrence

$ $    

3.1 Can the direct premium earned … be qualified or estimated? Yes [ ] No [ ] 3.11 If not, explain why not_________________3.2 If yes, provided premium numbers________________________

Page 22: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Cybersecurity proposal – Identity theft

1Number of

Claims Reported

Direct Premiums Direct LossesAdjusting and Other

Expenses

2Written

3Earned

4Paid

5Incurred

6Paid

7Incurred

  $ $ $ $ $ $Direct Defense and Cost

Containment10 

Number of Policies in

Force

8Paid

9Incurred

$ $  

If the reporting entity writes any standalone identity theft insurance coverage, please provide the following:

2. Standalone Identity Theft Insurance Policies

Page 23: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Cybersecurity proposal

If the reporting entity writes any identity theft insurance coverage that is part of a package policy, please provide the following:

4. Identity theft insurance that is part of a package policy

Direct Defense and Cost Containment

8 Number of Policies in

Force

6Paid

7Case Reserves

$ $  

1Number of Claims

Reported

Direct Losses Adjusting and Other Expenses

2Paid

3Case Reserves

4Paid

5Case Resereves

  $ $ $ $

Page 24: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-14BWG – Schedule D, Part 1

• Add new electronic columns for Issuer, Issue, ISIN Identification and Capital Structure Code.

Issuer Column & Issue Column:

The reporting entity is encouraged to use the following sources:• Bloomberg• Interactive Data Corporation (IDC)• Thomson Reuters• S&P/CUSIP• Descriptions used in either the relevant SEC filing or legal

documentation for the transaction.

Do not report ticker symbols, either internal or otherwise.

Page 25: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-15BWG – Note 22, Events Subsequent / SSAP 106

•Did the reporting entity write accident and health insurance premium that is subject to Section 9010 of the Federal Affordable Care Act (YES/NO)?

•TAC – 5 year historical crosschecks

Page 26: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-17BWG

Contracts Subject to Redetermination

Assets page:

Line 15.3 – Accrued Retrospective Premiums ($_____) and contracts subject to redetermination ($______) 

Liabilities page:

Line 4 (Health), Line 2 (Life & Fraternal): Aggregate Reserves  Include: payables for/accrued return premium for contracts subject to redetermination.

Income statement: Line 2 (Health) Net Premium Income, Line 1 (Life and Fraternal) Premiums

Include: Accrued return premium adjustments for contracts subject to redetermination.

Page 27: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-17BWG – Additional pages affected

Include: Accrued return premium adjustments for contracts subject to redetermination.

Health: U&I, Part 1, Direct Business (column 1) U&I, Part 2D, Aggregate Write-ins for Other Policy Reserves (line 5)

Life and Fraternal: Exhibit 6, Aggregate Write-ins (line 6)

Property: Liabilities page, Aggregate Write-ins for Liabilities (line 25)

Page 28: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

XXX/AXXX Supplement - Life and Fraternal

• Part 1 - All XXX and AXXX Cessions

• Part 2A - Transactions Subject to Part 2 Disclosure

(Grandfathered or Special Exemption)

• Part 2B - Transactions Subject to Part 2 Disclosure (Non-

Grandfathered)

• Part 3 - Collateral for All XXX/AXXX Reinsurance

Transactions Reported on Part 2A or Part 2B

• Part 4 - Non-Collateral Assets Supporting Reserves for All

Affiliate XXX/AXXX Reinsurance Transactions

Reported on Part 2A or Part 2B

• Part 5 - Supplemental XXX/AXXX Reinsurance Exhibit

Interrogatories

Page 29: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

XXX/AXXX – Part 1

Adds definitions:

– Actuarial Method– Covered Policies  – Required Level of Primary Security  – Primary Security  – Other Security

Page 30: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 1

Column 10 – Special Exemption by Domestic Regulator (YES/NO)

 

A “yes” response means - ceding insurer’s domiciliary regulator, after consulting with the NAIC Financial Analysis Working Group (FAWG) or other group of regulators designated by the NAIC, determined that all of the following apply to risks ceded:

1) such risks are clearly outside of the intent and purpose of AG-48; and

2) such risks are included within the scope of AG-48 only as a technicality;

and

3) the application of AG-48 to such risks is not necessary to provide

appropriate protection to policyholders under all the facts and

circumstances.

Page 31: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 2A & 2B

Part 2A – Transactions Subject to Part 2 Disclosure (Grandfathered or special exemption)

Part 2B – Transactions Subject to Part 2 Disclosure (Non-Grandfathered)

Page 32: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 2A

1    

 Cession

ID

2   

 NAIC

CompanyCode

3     

ID#

4    

  Name of Company

EffectiveDate or Prior

Year AnnualStatement

Date

As of Effective Date or Prior Year’s Annual Statement As of Current Year’s Annual Statement

6   

Reserve CreditTaken

7RequiredLevel ofPrimarySecurity

“Economic Reserve”

Level

8   

 PrimarySecurity

  

PrimarySecurity –

Trust

10

PrimarySecurity –

FundsWithheld orModified-

Coinsurance

11  

  

Other Security

12    

Reserve CreditTaken

13

RequiredLevel ofPrimarySecurity

“Economic Reserve” Level

14    

PrimarySecurity

15   

PrimarySecurity

Adjustment

165   

PrimarySecurity –

Trust

176

PrimarySecurity –

FundsWithheld orModified-

Coinsurance

187     

Other Security

                                   

9999999 Total                          

TRANSACTIONS SUBJECT TO PART 2 DISCLOSURE GRAND- FATHERED OR SPECIAL EXEMPTION)

Page 33: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 2B

Part 2B – Transactions Subject to Part 2 Disclosure (Non-Grandfathered)

1     

CssnID

2    

NAICCmpnyCode

3     

ID#

4     

Name of Cmpny

5  

EffectiveDate or PriorYear

AnnualStatement

Date

As of Effective Date or Prior Year’s Annual Statement

As of Current Year’s Annual Statement

6    

Rsrve CreditTaken

7  

Rqred Level

of Prmry Scrty

8    

PrmyScrty

9   

PrmryScrty –Trust

10PrmaryScrty –Funds

Withheld or

Modified-Coins

11     

Othr Secty

12    

Resrv Crdt

Taken

13  

Required Level of Primary Security

14    

PrmryScurty

15   

Primary Security Adjmnt

16   

PrimarySecurity

–Trust

17Primary

Security –Funds

Withheld or

Modified-Coins

18    

Othr Scty

                                   

9999999 Total                          

Page 34: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 3

Applies to all the cessions identified in Part 2A or 2B;– Provided, that if the reporting entity has not received any collateral in

connection with a cession identified in Part 2A, the only information required is the Cession ID number, Name of Company, NAIC Company Code, and ID Number.

– The reporting entity should prepare a separate page for each Cession ID reported on Part 2.

– The reporting entity should also provide a Grand Total page.

Page 35: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 3

Part 2 Cession ID __________Name of Company: ________________________________NAIC Company Code__________ ID Number __________

Effective Date or Prior Year Annual Statement Date: __________     

Security Category Description

As of Effective Date or Prior Year’sAnnual Statement

 As of Current Year’s Annual Statement

1  

Assets

2Affiliate or

Parental Guarantee(YES/NO)

3  

Assets

4Affiliate or

Parental Guarantee(YES/NO)

Primary Security        

1. Cash2. NAIC 1 SVO-Listed Securities3. NAIC 2 SVO-Listed Securities

4. NAIC 3 SVO-Listed Securities

5. NAIC 4 SVO-Listed Securities

6. NAIC 5 SVO-Listed Securities

7. NAIC 6 SVO-Listed Securities

8. Commercial Loans

9. Policy Loans

10. Derivatives acquired in the normal course        

11. Subtotal Primary Security   XXX   XXX

Page 36: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 3

Other Security        

12. Cash13 NAIC 1 SVO-Listed Securities

14. NAIC 2 SVO-Listed Securities

15. NAIC 3 SVO-Listed Securities

16. NAIC 4 SVO-Listed Securities

17. NAIC 5 SVO-Listed Securities

18. NAIC 6 SVO-Listed Securities

19. Commercial Loans

20. Policy Loans

21. Derivatives acquired in the normal course

22. Other Investments Admissible per the NAIC AP&P Manual

23. Evergreen, Unconditional LOCs

24. Other LOCs

25. Affiliate or Parental Guarantees

26. LOC-like Assets

27. Excess of Loss Reinsurance

28. All Other Assets        

29. Subtotal Other Security   XXX   XXX

999999930. Total   XXX   XXX

Page 37: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 4

• Applies to all the cessions identified in Part 2A or Part 2B where the assuming insurer is an affiliate of the reporting entity.

• The reporting entity should prepare a separate page for each Cession ID required to be reported on Part 4.

• The reporting entity should also provide a Grand Total page.

Page 38: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 4

Part 2 Cession ID __________Name of Company: __________________NAIC Company Code______ ID Number_________Effective Date or Prior Year Annual Statement Date: __________

    

Asset Category Description

As of Effective Date or Prior Year’sAnnual Statement

 As of Current Year’s Annual Statement

1Non-Collateral AssetsSupporting Reserves –Affiliate Transactions

2Affiliate or Parental

Guarantee (YES/NO)

3Non-Collateral AssetsSupporting Reserves –Affiliate Transactions

Affiliate or ParentalGuarantee (YES/NO)

1. Cash2. NAIC 1 SVO-Listed Securities3. NAIC 2 SVO-Listed Securities4. NAIC 3 SVO-Listed Securities5. NAIC 4 SVO-Listed Securities6. NAIC 5 SVO-Listed Securities7. NAIC 6 SVO-Listed Securities8. Commercial Loans9. Policy Loans10. Derivatives acquired in the normal course

11. Other Investments Admissible per the NAIC AP&P Manual

12. Evergreen, Unconditional LOCs13. Other LOCs14. Affiliate or Parental Guarantees15. LOC-like Assets16. Excess of Loss Reinsurance17. All Other Assets        

999999918. Total   XXX   XXX

Page 39: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Part 5

• Includes Interrogatories relating to Part 3 and Part 4 collateral– Letters of credit, contingent note, or similar– Pledged to a financing provider – Duration less than the duration of the underlying policy liability– Guaranteed by an affiliate or parent

Page 40: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Supplemental Health Care Exhibit

• 2015-19BWG - Cautionary statement and web link reference

• 2015-20BWG - Risk Adjustment (contracts subject to redetermination), Risk Corridor (retrospectively rated contract)

References SSAP 54, 66, 107

– Direct Premiums Written (SCHE Part 2) - Include: Premium adjustments for contracts subject to redetermination where premium adjustments are based on the risk scores (health status) of covered enrollees, rather than the actual loss experience of the policy

• (examples: Medicare Advantage risk adjustment and ACA risk adjustment).

– Rate Credits – instruction added for risk corridor premiums paid or received, and all other premium refunds paid or received related to retrospectively rated contracts.

Page 41: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Supplemental Health Care Exhibit

• 2015-21BWG - Footnote table addition – To capture 3R’s receivables, payables and receipts by state for

individual and small group plans. AFFORDABLE CARE ACT (ACA) RECEIPTS, PAYMENTS, RECEIVABLES AND PAYABLES

    Current Year Prior YearComprehensive Health

CoverageComprehensive Health

Coverage    1

 Individual

Plans

2Small Group

Employer Plans

Individual Plans

4Small Group

Employer Plans

 ACA Receivables and Payables        1. Permanent ACA Risk Adjustment Program          1.0 Premium adjustments receivable/(payable)        2. Transitional ACA Reinsurance Program          2.0 Total amounts recoverable for claims (paid & unpaid)   XXX   XXX3. Temporary ACA Risk Corridors Program          3.1 Accrued retrospective premium  3.2 Reserve for rate credits or policy experience refunds         ACA Receipts and Payments        4. Permanent ACA Risk Adjustment Program          4.0 Premium adjustments receipts/(payments)        5. Transitional ACA Reinsurance Program          5.0 Amounts received for claims   XXX   XXX6. Temporary ACA Risk Corridors Program          6.1 Retrospective premium received  6.2 Rate credits or policy experience refunds paid        

Page 42: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-21BWG

AFFORDABLE CARE ACT (ACA) RECEIPTS, PAYMENTS, RECEIVABLES and PAYABLES 

  Current Year Prior Year

Comprehensive Health Coverage

Comprehensive Health Coverage

  

Individual Plans

2Small Group

Employer Plans

Individual Plans

2Small Group

Employer Plans

 ACA Receivables and Payables        1.

Permanent ACA Risk Adjustment Program         

1.0 Premium adjustments receivable/(payable)        2.

Transitional ACA Reinsurance Program         

2.0 Total amounts recoverable for claims (paid & unpaid)   XXX   XXX3.

Temporary ACA Risk Corridors Program         

3.1 Accrued retrospective premium 

3.2 Reserve for rate credits or policy experience refunds         ACA Receipts and Payments        4.

Permanent ACA Risk Adjustment Program         

4.0 Premium adjustments receipts/(payments)        5.

Transitional ACA Reinsurance Program         

5.0 Amounts received for claims   XXX   XXX6.

Temporary ACA Risk Corridors Program         

6.1 Retrospective premium received 

6.2 Rate credits or policy experience refunds paid        

Page 43: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Polling Question

# 2

43

For Schedule D, Part 1 description column report only what is reported in:

A. Electronic issuer column B. Electronic issue column C. ISIN number column D. None of the above is correct

Page 44: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

RISK-BASED CAPITAL CHANGES – YEAR-END 2015

44

Page 45: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Learning Objectives

• Describe the reporting changes for the risk-based capital formula by line of business for year-end 2015

– Health– Life/Fraternal– Property/Casualty

45

Page 46: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

Crystal Brown

NAIC

Sr. Insurance Reporting Analyst - RBC

–Maintains the Health Risk-Based Capital

Formula and Supports the UCAA application–Supports Health Risk-Based Capital (E) Working Group –Supports Health Risk-Based Capital Drafting Group (informal)–Supports Company Licensing Transactions (E) Subgroup–Joined NAIC in May 2006–Bachelor’s Degree – Business Administration–Contact email information: [email protected]

Page 47: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

NAIC RBC Contacts

Capital Adequacy (E) Task Force

Jane Barr - Manager I – Company Licensing & RBC

[email protected] 816-783-8413

Health Risk-Based Capital (E) Working Group and Health RBC Formula

Crystal Brown - Sr. Insurance Reporting Analyst - RBC

[email protected] 816-783-8146

Life Risk-Based Capital (E) Working Group and Life & Fraternal RBC Formulas

Dave Fleming - Sr. Insurance Reporting Analyst - RBC

[email protected] 816-783-8121

Property/Casualty Risk-Based Capital (E) Working Group and P/C RBC Formula

Eva Yeung - RBC Technical Lead/Reporting Analyst

[email protected] 816-783-8407

47

Page 48: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-24-H, 2014-39-L and 2014-30-P – Risk Adjustment & Risk Corridor Sensitivity Test – New Page

48

Page 49: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-25-H – Medicare, Medicaid and Other MLR – Page XR012-A

2014-36-L & 2014-31-P – Underwriting Risk – Experience Fluctuation

Risk - Info Only Page LR020-A, FR020-A & PR020-A

49

Page 50: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-26-H – Pandemic and Biological Risk Interrogatories

50

Page 51: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-01-H – Investment Affiliates – Type Code 5 and Formula 2015-02-H – Clarification to Affiliates that are Subject to RBC Instructions

2015-01-H - The purpose of the change was to simplify the calculation of the charge for Investment Affiliates by applying a straight factor times the carrying value of the common and preferred stock.

A correction to the formula calculation was also made in conjunction with this change on page XR002

2015-02-H - The purpose of this proposal was to clarify the instructions for Affiliates that are Subject to RBC and to ensure that the formula and instructions matched.

51

Page 52: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2015-06-H – Instructional Change for Other Coverages on page XR012 & XR012-A

52

Page 53: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-32-L Treatment of Cash Collateral Pledged for Derivatives

53

Page LR012 – Miscellaneous Assets

LR017 – Off –Balance Sheet and Other Items

Page 54: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

54

2014-33-L XXX and AXXX Qualified

Page 55: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

55

2014-35-L Shortfall of Primary Securities

Page 56: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-42-L RBC Shortfall

56

Page 57: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

57

2015-16-L C-3 Phase 1 Informational Filing

Page 58: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

2014-27-CR R6 and R7 Contingent Credit Risk2015-04-CR EP Curve Sorting 2015-10-CR OEP Basis Factors for R6 &R7

58

Page 59: 2015 Reporting Updates Tuesday / December 15, 2015 1pm Central / 2pm Eastern

59

2014-37-CR Exemption Criteria (Structure & Wording

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2014-40-CR Attestation for Cat Risk Charge Methodologies

The structure change allows companies to indicate which of the methodologies was used to sort the net and gross probable maximum losses. The purpose is to collect data on how companies are deriving their modeled catastrophe losses.

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2014-38-P R3 Credit Risk (For Informational Purposes ONLY)

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2015-07-P Asset Concentration – LIHTC & WCFI

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2015-08P Valuation Basis Column on the Affiliated Investments Page

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2015-11P Underwriting Risk Line 1 for Reserves Industry Average Development Factors and Net Written Premiums Industry Average Loss and Expense Ratios Factors

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2015-12CR Line 1 Ex-Cat Industry Average Loss and Expense Ratios and Line 4 Ex-Cat Industry Losses and Loss Adjustment Expense Ratio

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2014-22-CA Instruction Clarification for RBC Requirement Amounts, TAC and RBC Factors2015-03- CA Jurat Signature Requirements

2014-22-CA

2015-03-CA

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2014-23-CA AVR is limited to the Amount not used in Asset Adequacy Testing (Health & P/C)

• Footnote Change:

Instructions Change:“The portion of the AVR that can be counted as capital is limited to the amount not utilized in asset adequacy testing in support of the Actuarial Opinion for reserves.”

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2015-05-CA ACA Fee Sensitivity Test Instruction change and reference change2015-09-CA Broker’s Receivables Factors

2015-05-CA

2015-09-CAHealth – 0.026Life – 0.014P/C – 0.027

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2015-13-O – Operational Risk Factors (Informational Only)2015-17-CA – RBC Procedures

• Developed procedures for the Capital Adequacy Task Force and all RBC related Working Groups and Subgroups.

• Developed procedures for proposal submissions, exposures, adoptions and posting of adopted proposals until RBC publications are available.

2015-13-O

2015-17-CA

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Thank you for joining us!

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If you have difficulty viewing the archived presentation, or would like further information about this and future topics to be covered, please contact:Tricia StillmanDirector of Member and Volunteer Services – IASA [email protected] 919-489-0991 x202

Closing Remarks

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