ATTACHMENT H
CLRS
Accounting Practices and Procedures Manual
Effective January 1, 2001
As of March 2000
TABLE OF CONTENTS
Statements of Statutory Accounting Principles (SSAP) - Volume I
No.
1
2
3
4
5
6
7
8
9
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19
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31
Title
Preamble
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 Due From Agents and Brokers
Asset Valuation Reserve and Interest Maintenance Reserve
Pensions
Subsequent Events
Income Taxes
Postemployment Benefits and Compensated Absences
Employee Stock Ownership Plans
Stock Options and Stock Purchase Plans
Postretirement Benefits Other Than Pensions
Debt and Holding Company Obligations
Electronic Data Processing Equipment and Software
Preoperating and Research and Development Costs
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities
Furniture, Fixtures and Equipment; Leasehold Improvements Paid by the
Reporting Entity as Lessee; Depreciation of Property and Amortization
of Leasehold Improvements
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 Related Parties
Bonds, excluding Loan-backed and Structured Securities
Disclosure of Information about Financial Instruments with Off-BalanceSheet Risk, Financial Instruments with Concentrations of Credit Risk
and Disclosures about Fair Value of Financial Instruments
Nonmonetary Transactions
Prepaid Expenses
Investments in Common Stock (excluding investments in common stock of
subsidiary, controlled, or affiliated entities)
Derivative Instruments
Page
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Table of Contents
No.
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Title
Investments in Preferred Stock (excluding investments in preferred stock of
subsidiary, controlled, or affiliated entities)
Securitization
Investment Income Due and Accrued
Guaranty Fund and Other Assessments
Troubled Debt Restructuring
Mortgage Loans
Acquisition, Development and Construction Arrangements
Reverse Mortgages
Real Estate Investments
Surplus Notes
Sale of Premium Receivables
Loan-backed and Structured Securities
Capitalization of Interest
Repurchase Agreements, Reverse Repurchase Agreements and Dollar
Repurchase Agreements
Investments in Subsidiary, Controlled, and Affiliated Entities
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, and Leasehold Improvements in Health Care Facilities
2
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Table of Contents
INDEX to Statements of Statutory Accounting Principles - Volume I
Page
1
GLOSSARY to Statements of Statutory Accounting Principles - Volume I
Page
13
Appendix A - Volume I
No.
A-001
A-010
A-205
A-225
A-235
A-250
A-255
A-270
A-440
A-585
A-588
A-620
A-628
A-630
A-641
A-785
A-791
A-812
A-820
A-821
A-822
A-825
Title
Investments of Reporting Entities
Minimum Reserve Standards for Individual and Group Health Insurance
Contracts
Illustrative Disclosure of Differences Between NAIC Statutory Accounting
Practices and Procedures and Accounting Practices Prescribed or
Permitted by the State of Domicile
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
Credit for Reinsurance
Life and Health Reinsurance Agreements
Smoker/Nonsmoker Mortality Tables for Use in Determining Minimum
Reserve Liabilities and Nonforfeiture Benefits
Minimum Life and Annuity Reserve Standards
Annuity Mortality Table for Use in Determining Reserve Liabilities for
Annuities
Asset Adequacy Analysis Requirements
Commissioners’ Annuity Reserve Valuation Method (CARVM)
Page
A001-1
A010-1
A205-1
A225-1
A235-1
A250-1
A255-1
A270-1
A440-1
A585-1
A588-1
A620-1
A628-1
A630-1
A641-1
A785-1
A791-1
A812-1
A820-1
A821-1
A822-1
A825-1
Appendix B - Interpretations of Emerging Accounting Issues Working Group - Volume I
No.
INT 99-1
INT 99-2
INT 99-3
INT 99-4
INT 99-5
Title
Accounting for Tax Benefits of Operating Losses and Tax Credits in QuasiReorganizations
Accounting for Collateral in Excess of Debt Principal
Accounting for Investment in Subsidiary, Controlled or Affiliated (SCA)
Entities with Subsequent Downstream Investment in an Insurance
Company
Recognition of Prepayment Penalties Upon Adoption of Codification
EITF 97-1 Implementation Issues in Accounting for Lease Transactions,
Including Those Involving Special-Purpose Entities
3
Page
B-1
B-2
B-3
B-4
B-5
Table of Contents
No.
INT 99-6
INT 99-7
INT 99-8
INT 99-9
INT 99-10
INT 99-11
INT 99-12
INT 99-13
INT 99-14
INT 99-15
INT 99-16
INT 99-17
INT 99-18
INT 99-19
INT 99-20
INT 99-21
INT 99-22
INT 99-23
INT 99-24
INT 99-25
INT 99-26
INT 99-27
INT 99-28
INT 99-29
Title
EITF 97-2 Application of FASB Statement No. 94 and APB Opinion No.
16 to Physician Practice Management Entities and Certain Other
Entities with Contractual Management Arrangements
EITF 97-3 Accounting for Fees and Costs Associated with Loan
Syndications and Loan Participations after the Issuance of FASB
Statement No. 125
EITF 97-6 Application of Issue No. 96-20 to Qualifying Special-Purpose
Entities Receiving Transferred Financial Assets Prior to the Effective
Date of FASB Statement No. 125
EITF 97-7 Accounting for Hedges of the Foreign Currency Risk Inherent in
an Available-for-Sale Marketable Equity Security
EITF 97-8 Accounting for Contingent Consideration Issued in a Purchase
Business Combination
EITF 95-22 Balance Sheet Classification of Borrowings Outstanding under
Revolving Credit Agreements That Include both a Subjective
Acceleration Clause and a Lock-Box Arrangement
EITF 96-16: Investor’s Accounting for an Investee When the Investor Has a
Majority of the Voting Interest but the Minority Shareholder or
Shareholders Have Certain Approval or Veto Rights
EITF 96-18: Accounting for Equity Instruments That Are Issued to Other
Than Employees for Acquiring, or in Conjunction with Selling, Goods
or Services
EITF 96-19 Debtor’s Accounting for a Modification or Exchange of Debt
Instruments
EITF 97-10 The Effect of Lessee Involvement in Asset Construction
EITF 97-11 Accounting for Internal Costs Relating to Real Estate Property
Acquisitions
EITF 97-12 Accounting for Increased Share Authorizations in an IRS
Section 423 Employee Stock Purchase Plan under APB Opinion No. 25
EITF 97-13 Accounting for Costs Incurred in Connection with a Consulting
Contract or an Internal Project That Combines Business Process
Reengineering and Information Technology Transformation
EITF 97-9 Effect on Pooling-of-Interests Accounting of Certain
Contingently Exercisable Options or Other Equity Instruments
EITF 98-1 Valuation of Debt Assumed in a Purchase Business
Combination
EITF 98-7 Accounting for Exchanges of Similar Equity Method
Investments
EITF 98-8 Accounting for Transfers of Investments That Are in Substance
Real Estate
Disclosure of Premium Deficiency Reserves
Accounting for Restructuring Charges
Accounting for Capital Improvements
Offsetting Pension Assets and Liabilities
Nonadmitting Installment Receivables
Accounting for SCA Mutual Funds, Broker-Dealers and Similar Entities
Under SSAP No. 46
Classification of Step-up Preferred Stock
4
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B-21
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B-23
B-24
B-25
B-26
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B-30
B-31
Table of Contents
Appendix C - Actuarial Guidelines - Volume I
Title
Actuarial Guidelines
Actuarial Guideline I
Actuarial Guideline II
Actuarial Guideline III
Actuarial Guideline IV
Actuarial Guideline V
Actuarial Guideline VI
Actuarial Guideline VII
Actuarial Guideline VIII
Actuarial Guideline IX
Actuarial Guideline IX-A
Actuarial Guideline IX-B
Actuarial Guideline X
Actuarial Guideline XI
Actuarial Guideline XII
Actuarial Guideline XIII
Actuarial Guideline XIV
Actuarial Guideline XV
Actuarial Guideline XVI
Actuarial Guideline XVII
Actuarial Guideline XVIII
Actuarial Guideline XIX
Actuarial Guideline XX
1980 CSO and 1980 CET Tables
Actuarial Guideline XXI
Actuarial Guideline XXII
Actuarial Guideline XXIII
Actuarial Guideline XXIV
Actuarial Guideline XXV
Actuarial Guideline XXVI
Actuarial Guideline XXVII
Actuarial Guideline XXVIII
Actuarial Guideline XXIX
Actuarial Guideline XXX
Actuarial Guideline XXXI
Actuarial Guideline XXXII
Actuarial Guideline XXXIII
Actuarial Guideline XXXIV
Appendix I Immediate Drop Percentages and Gross Assumed Returns
Appendix II 1994 Variable Annuity MGDB Mortality Table
Female Age Last Birthday
Male Age Last Birthday
Female Age Nearest Birthday
Male Age Nearest Birthday
Appendix III Description of Asset Classes
Actuarial Guideline XXXV
Attachment 1 Description of Computational Methods
Attachment 2 Hedged as Required Criteria
Attachment 3 Reasonableness of Assumptions Certification
5
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C-7
C-8
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C-11
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C-16
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C-21
C-22
C-25
C-29
C-31
C-32
C-33
C-35
C-37
C-39
C-40
C-41
C-42
C-43
C-44
C-50
C-51
C-52
C-53
C-60
C-64
C-66
C-71
C-72
C-74
C-76
C-77
C-79
C-86
C-92
C-93
C-93
C-94
C-95
C-96
C-97
C-98
C-102
C-104
C-106
Table of Contents
Title
Attachment 4 Reasonableness and Consistency of Assumptions Certification
Appendix to Guidelines
Table 1 Statutory Calendar Year Interest Rates Based On NAIC Standard
Valuation and Nonforfeiture Laws
Appendix A Basis for Interest Rate Calculations
Exhibit 1 Statutory Valuation Interest Rate Determination
Page
C-107
C-108
C-109
C-115
C-119
Appendix D - GAAP Cross-Reference to SSAPs - Volume I
Title
Category A - FASB Statements and Interpretations, APB Opinions, and AICPA Accounting
Research Bulletins
Category B - FASB Technical Bulletins, AICPA Industry Audit and Accounting Guides, and
AICPA Statements of Position
Category C - Consensus Opinions of the FASB Emerging Issues Task Force and AICPA
Practice Bulletins
Category D - AICPA Accounting Interpretations
Page
D-1
D-18
D-26
D-46
Appendix E - Issue Papers - Volume II
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
16
17
19
20
21
22
23
24
25
26
27
28
29
Title
Consolidation of Majority-owned Subsidiaries
Definition of Cash
Accounting Changes
Definition of Assets and Nonadmitted Assets
Definition of Liabilities, Loss Contingencies and Impairments of Assets
Amounts Due From Agents and Brokers
Asset Valuation Reserve and Interest Maintenance Reserve
Accounting for Pensions
Subsequent Events
Uncollected Premium Balances
Compensated Absences
Accounting for Drafts Issued and Outstanding
Employers’ Accounting for Postemployment Benefits
Employers’ Accounting for Postretirement Benefits Other Than Pensions
Electronic Data Processing Equipment and Software
Preoperating and Research and Development Costs
Furniture, Fixtures and Equipment
Gain Contingencies
Bills Receivable For Premiums
Leases
Property Occupied by the Company
Discontinued Operations and Extraordinary Items
Accounting for and Disclosures about Transactions with Affiliates and Other
Related Parties
Bonds, excluding Loan-backed and Structured Securities
Disclosure of Information about Financial Instruments with Concentration of
Credit Risk
Short-term Investments
Prepaid Expenses (excluding Deferred Policy Acquisition Costs and other
underwriting expenses, income taxes and Guaranty Fund Assessments)
6
Page
IP1-1
IP2-1
IP3-1
IP4-1
IP5-1
IP6-1
IP7-1
IP8-1
IP9-1
IP10-1
IP11-1
IP12-1
IP13-1
IP14-1
IP16-1
IP17-1
IP19-1
IP20-1
IP21-1
IP22-1
IP23-1
IP24-1
IP25-1
IP26-1
IP27-1
IP28-1
IP29-1
Table of Contents
No.
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
59
65
66
67
68
69
71
72
73
74
75
76
77
78
80
81
82
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84
85
Title
Investments in Common Stock (excluding investments in common stock of
subsidiary, controlled, or affiliated entities)
Leasehold Improvements Paid by the Reporting Entity as Lessee
Investments in Preferred Stock (excluding investments in preferred stock of
subsidiary, controlled, or affiliated entities)
Disclosures about Fair Value of Financial Instruments
Investment Income Due and Accrued
Accounting for Guaranty Fund and Other Assessments
Troubled Debt Restructurings
Mortgage Loans
Acquisition, Development and Construction Arrangements
Reverse Mortgages
Real Estate Investments
Surplus Notes
Sale of Premium Receivables
Loan-backed and Structured Securities
Capitalization of Interest
Repurchase Agreements, Reverse Repurchase Agreements and Dollar Repurchase
Agreements
Accounting for Investments in Subsidiary, Controlled and Affiliated Entities
Uninsured Plans
Investments in 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
Universal Life-Type Contracts, Policyholder Dividends, and Coupons
Title Insurance
Credit Life and Accident and Health Insurance Contracts
Property and Casualty Contracts
Accounting for Retrospectively Rated Contracts
Depreciation of Property and Amortization of Leasehold Improvements
Business Combinations and Goodwill
Financial Guaranty Insurance
Policy Acquisition Costs and Commissions
Statutory Surplus
Nonmonetary Transactions
Life, Deposit-Type and Accident and Health Reinsurance
Property and Casualty Reinsurance
Offsetting and Netting of Assets and Liabilities
Disclosure of Accounting Policies, Risks & Uncertainties, and Other Disclosures
Employee Stock Ownership Plans
Debt
Foreign Currency Transactions and Translations
Stock Options and Stock Purchase Plans
Accounting for Income Taxes
Quasi-reorganizations
Derivative Instruments
7
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IP30-1
IP31-1
IP32-1
IP33-1
IP34-1
IP35-1
IP36-1
IP37-1
IP38-1
IP39-1
IP40-1
IP41-1
IP42-1
IP43-1
IP44-1
IP45-1
IP46-1
IP47-1
IP48-1
IP49-1
IP50-1
IP51-1
IP52-1
IP53-1
IP54-1
IP55-1
IP56-1
IP57-1
IP59-1
IP65-1
IP66-1
IP67-1
IP68-1
IP69-1
IP71-1
IP72-1
IP73-1
IP74-1
IP75-1
IP76-1
IP77-1
IP78-1
IP80-1
IP81-1
IP82-1
IP83-1
IP84-1
IP85-1
Table of Contents
No.
86
87
88
89
90
92
94
95
96
97
99
100
101
Title
Securitization
Other Admitted Assets
Mortgage Guaranty Insurance
Separate Accounts
Nonadmitted Assets
Statement of Cash Flow
Allocation of Expenses
Holding Company Obligations
Other Liabilities
Underwriting Pools and Associations Including Intercompany Pools
Nonapplicable GAAP Pronouncements
Health Care Delivery Assets - Supplies, Pharmaceuticals and Surgical Supplies,
and Durable Medical Equipment
Health Care Delivery Assets - Furniture, Medical Equipment and Fixtures, and
Leasehold Improvements in Health Care Facilities
Page
IP86-1
IP87-1
IP88-1
IP89-1
IP90-1
IP92-1
IP94-1
IP95-1
IP96-1
IP97-1
IP99-1
IP100-1
IP101-1
Appendix F - Policy Statements - Volume II
Title
NAIC Policy Statement on Maintenance of Statutory Accounting Principles
NAIC Policy Statement on Comments to GAAP Exposure Drafts
8
Page
F-1
F-3