Accounting Practices And Procedures Manual - Table Of Contents

Accounting Practices and Procedures ManualAs of March 2013TABLE OF CONTENTSStatements of Statutory Accounting Principles (SSAP) - Volume IIn October 2010, the Statutory Accounting Principles (E) Working Group adopted a proposal to remove100% superseded SSAPs and nullified interpretations (INTs) from Volume I of the Manual and includethese items within a new Appendix H in Volume III. Under this approach, only current authoritativeguidance is located in Volume I of the Manual, while preserving the historical reference needed foraccounting purposes. If a SSAP or interpretation has been superseded, it is included in Appendix 435R363738TitlePreamble .Disclosure of Accounting Policies, Risks & Uncertainties, and Other Disclosures .Cash, Drafts, and Short-term Investments .Accounting Changes and Corrections of Errors .Assets and Nonadmitted Assets .Liabilities, Contingencies and Impairments of Assets .Uncollected Premium Balances, Bills Receivable for Premiums, and Amounts DueFrom Agents and Brokers .Asset Valuation Reserve and Interest Maintenance Reserve .Subsequent Events .Postemployment Benefits and Compensated Absences .Employee Stock Ownership Plans .Debt and Holding Company Obligations .Electronic Data Processing Equipment and Accounting for Software .Preoperating and Research and Development Costs .Furniture, Fixtures and Equipment; Leasehold Improvements Paid by the ReportingEntity as Lessee; Depreciation of Property and Amortization of LeaseholdImprovements .Nonadmitted Assets .Other Admitted Assets .Leases .Foreign Currency Transactions and Translations .Discontinued Operations and Extraordinary Items .Accounting for and Disclosures about Transactions with Affiliates and Other RelatedParties .Bonds, Excluding Loan-Backed and Structured Securities .Disclosure of Information about Financial Instruments with Off-Balance-Sheet Riskand Financial Instruments with Concentrations of Credit Risk .Prepaid Expenses .Investments in Common Stock (excluding investments in common stock ofsubsidiary, controlled, or affiliated entities) .Investments in Preferred Stock (including investments in preferred stock ofsubsidiary, controlled, or affiliated entities) .Investment Income Due and Accrued .Guaranty Fund and Other Assessments .Troubled Debt Restructuring .Mortgage Loans .Acquisition, Development and Construction Arrangements . 1999-2013 National Association of Insurance 7-129-130-132-134-135R-136-137-138-1

Table of R95TitleReverse Mortgages .Real Estate Investments .Surplus Notes .Sale of Premium Receivables .Loan-Backed and Structured Securities .Capitalization of Interest .Uninsured Plans .Joint Ventures, Partnerships and Limited Liability Companies .Policy Loans .Classifications and Definitions of Insurance or Managed Care Contracts in Force .Life Contracts .Deposit-Type Contracts .Property Casualty Contracts–Premiums .Individual and Group Accident and Health Contracts .Unpaid Claims, Losses and Loss Adjustment Expenses .Separate Accounts .Title Insurance .Mortgage Guaranty Insurance .Credit Life and Accident and Health Insurance Contracts .Financial Guaranty Insurance .Life, Deposit-Type and Accident and Health Reinsurance .Property and Casualty Reinsurance .Underwriting Pools and Associations Including Intercompany Pools .Offsetting and Netting of Assets and Liabilities .Property and Casualty Contracts .Retrospectively Rated Contracts .Other Liabilities .Business Combinations and Goodwill .Statement of Cash Flow .Allocation of Expenses .Policy Acquisition Costs and Commissions .Surplus and Quasi-Reorganizations .Health Care Delivery Assets—Supplies, Pharmaceuticals and Surgical Supplies,Durable Medical Equipment, Furniture, Medical Equipment and Fixtures, andLeasehold Improvements in Health Care Facilities .Accounting for the Issuance of Insurance-Linked Securities Issued by a Property andCasualty Insurer Through a Protected Cell .Reporting on the Costs of Start-Up Activities .Multiple Peril Crop Insurance .Mezzanine Real Estate Loans .Certain Health Care Receivables and Receivables Under Government Insured Plans .Accounting for Derivative Instruments and Hedging, Income Generation, andReplication (Synthetic Asset) Transactions .Accounting for the Impairment or Disposal of Real Estate Investments .Accounting for Postretirement Benefits Other than Pensions, A Replacement ofSSAP No. 14 .Accounting for Low Income Housing Tax Credit Property Investments .Accounting for Transferable State Tax Credits .Exchanges of Nonmonetary Assets, A Replacement of SSAP No. 28—NonmonetaryTransactions . 1999-2013 National Association of Insurance 73-174-176-178-183-184-186-190-192-193-194R-195-1

Table of ContentsNo.97100101102103104TitleInvestments in Subsidiary, Controlled and Affiliated Entities, A Replacement ofSSAP No. 88 .Fair Value Measurements .Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10 .Accounting for Pensions, A Replacement of SSAP No. 89 .Accounting for Transfers and Servicing of Financial Assets and Extinguishments ofLiabilities .Share-Based Payments .Page97-1100-1101-1102-1103-1104-1INDEX to Statements of Statutory Accounting Principles - Volume I .Page1GLOSSARY to Statements of Statutory Accounting Principles - Volume I .Page17Appendix A – Excerpts of NAIC Model Laws – Volume -812A-815A-817A-818A-820A-821A-822TitleInvestments of Reporting Entities .Minimum Reserve Standards for Individual and Group Health Insurance Contracts.Separate Accounts Funding Guaranteed Minimum Benefits Under Group Contracts .Illustrative Disclosure of Differences Between NAIC Statutory Accounting Practicesand Procedures and Accounting Practices Prescribed or Permitted by the State ofDomicile .Managing General Agents .Interest-Indexed Annuity Contracts .Variable Annuities .Modified Guaranteed Annuities .Variable Life Insurance .Insurance Holding Companies .Universal Life Insurance .Modified Guaranteed Life Insurance .Accelerated Benefits .Title Insurance .Mortgage Guaranty Insurance .Long-Term Care Insurance .Synthetic Guaranteed Investment Contracts .Credit for Reinsurance .Life and Health Reinsurance Agreements .Smoker/Nonsmoker Mortality Tables for Use in Determining Minimum ReserveLiabilities .Recognition of Preferred Mortality Tables for Use in Determining Minimum ReserveLiabilities .Preneed Life Insurance Minimum Standards for Determining Reserve Liabilities andNonforfeiture Values.Determining Reserve Liabilities for Credit Life Insurance Model Regulation .Minimum Life and Annuity Reserve Standards .Annuity Mortality Table for Use in Determining Reserve Liabilities for Annuities .Asset Adequacy Analysis Requirements . 1999-2013 National Association of Insurance -1A818-1A820-1A821-1A822-1

Table of ContentsNo.A-830TitlePageValuation of Life Insurance Policies (Including the Introduction and Use of NewSelect Mortality Factors). A830-1Appendix B - Interpretations of Emerging Accounting Issues Working Group - Volume IIn 2009, the Emerging Accounting Issues (E) Working Group reached a consensus to incorporate“rejected” and “non-applicable” FASB EITFs that do not provide additional statutory accountingguidance in a listing within a designated interpretation. This interpretation (INT 99-00) includesreference of all FASB EITFs, including those previously included in Appendix B as a statutoryaccounting interpretation, that were 1) rejected as not applicable to statutory accounting; 2) rejectedwithout providing additional statutory guidance; or 3) rejected on the basis of issues rejected in a SSAP.INT 99-00 will be updated as needed to reference future GAAP interpretations as appropriate.In October 2010, the Statutory Accounting Principles (E) Working Group adopted a proposal to remove100% superseded SSAPs and nullified interpretations (INTs) from Volume I of the Manual and includethese items within Appendix H in Volume III. Under this approach, only current authoritative guidance islocated in Volume I of the Manual, while preserving the historical reference needed for accountingpurposes. If a SSAP or interpretation has been superseded, it is included in Appendix H.No.INT 99-00INT 00-03INT 00-20INT 00-24INT 00-26INT 00-28INT 00-32INT 01-18INT 01-25INT 01-31INT 02-22INT 03-02INT 03-12INT 04-17INT 04-21INT 05-04INT 05-05INT 05-06TitleCompilation of Rejected EITFs .Illustration of the Accounting/Reporting of Deposit-Type Contracts inAccordance with SSAPs No. 51, 52 and 56 .Application of SEC SAB No. 99, Materiality to the Preamble of the AP&PManual.EITF 98-13: Accounting by an Equity Method Investor for Investee Losses Whenthe Investor Has Loans to and Investments in Other Securities of the Investeeand EITF 99-10: Percentage Used to Determine the Amount of EquityMethod Losses .EITF 98-3: Determining Whether a Nonmonetary Transaction Involves Receipt ofProductive Assets or of a Business .EITF 99-12: Determination of the Measurement Date for the Market Price ofAcquirer Securities Issued in a Purchase Business Combination .EITF 00-8: Accounting by a Grantee for an Equity Instrument to Be Received inConjunction with Providing Goods or Services .Consolidated or Legal Entity Level – Limitations on EDP Equipment, Goodwilland Deferred Tax Assets Admissibility .Accounting for U.S. Treasury Inflation-Indexed Securities .Assets Pledged as Collateral .Accounting for the U.S. Terrorism Risk Insurance Program .Modification to an Existing Intercompany Pooling Arrangement .EITF 02-4: Determining Whether a Debtor’s Modification or Exchange of DebtInstruments is within the Scope of FASB Statement No. 15 .Impact of Medicare Modernization Act on Postretirement Benefits .EITF 02-09: Accounting for Changes that Result in a Transferor RegainingControl of Financial Assets Sold .Extension of Ninety-day Rule for the Impact of Hurricane Katrina, Hurricane Ritaand Hurricane Wilma .Accounting for Revenues Under Medicare Part D Coverage .Earned But Uncollected Premium .

This interpretation (INT 99-00) includes reference of all FASB EITFs, including those previously included in Appendix B as a statutory accounting interpretation, that were 1) rejected as not applicable to statutory accounting; 2) rejected . Table of Contents v No. Title Page INT 06-02 Accounting and Reporting for Investments in a Certified .