NAIC BLANKS (E) WORKING GROUP
Blanks Agenda Item Submission Form
DATE:
01/06/2012
CONTACT PERSON:
TELEPHONE:
REVIEWED FOR ACCOUNTING
PRACTICES AND PROCEDURES IMPACT
EMAIL ADDRESS:
ON BEHALF OF:
Valuation of Securities Task Force (VOSTF)
NAME:
Kevin Fry
TITLE:
Chair VOSTF
No Impact [ X ]
Modifies Required Disclosure [
DISPOSITION
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[
]
[ X ]
[
]
[
]
[
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[
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AFFILIATION:
ADDRESS:
FOR NAIC USE ONLY
Agenda Item # 2012-08BWG
Year
2012
Changes to Existing Reporting
[X ]
New Reporting Requirement
[ ]
320 W. Washington St., 4th Fl.
Springfield, IL 62767
]
Rejected For Public Comment
Referred To Another NAIC Group
Received For Public Comment
Adopted Date
Rejected Date
Deferred Date
Other (Specify)
BLANK(S) TO WHICH PROPOSAL APPLIES
[X ]
[X ]
ANNUAL STATEMENT
INSTRUCTIONS
[X ]
[
]
QUARTERLY STATEMENT
CROSSCHECKS
[ X ] Life and Accident & Health
[
] Separate Accounts
[
] Other Specify
[X ]
[X ]
Property/Casualty
Fraternal
[
[X ]
[X ]
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BLANK
Health
Title
Anticipated Effective Date: Annual 2012
IDENTIFICATION OF ITEM(S) TO CHANGE
Modify the definition of what is included in U.S. Governments and U.S. Special Revenue and Special Assessment
Obligations and all Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political
Subdivisions in the Investment Schedules General Instructions.
REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE**
Definition of what is included in U.S. Governments and U.S. Special Revenue and Special Assessment Obligations and all
Non-Guaranteed Obligations of Agencies and Authorities of Governments and Their Political Subdivisions in the Investment
Schedules General Instructions is being changed to be consistent with changes to the SVO Practices and Procedures Manual.
NAIC STAFF COMMENTS
Comment on Effective Reporting Date: Annual 2012 should not be a problem
Other Comments:
___________________________________________________________________________________________________
** This section must be completed on all forms.
Revised 6/13/2009
© 2012 National Association of Insurance Commissioners
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ANNUAL & QUARTERLY STATEMENT INSTRUCTIONS – LIFE, HEALTH, PROPERTY, FRATERNAL & TITLE
INVESTMENT SCHEDULES GENERAL INSTRUCTIONS
(Applies to all investment schedules)
Detail Eliminated To Conserve Space
The following is the description of the General and Specific Classifications used for reporting the detail lines for bonds and
stocks.
General Classifications Bonds Only:
U.S. Government:
U.S. Government shall be defined as U.S. Government Obligations as defined per the Purposes and Procedures
Manual of the NAIC Securities Valuation Office Part Two, Section 4(c)(i):
(i) Filing Exemption for Direct Claims on, or Backed Full Faith and Credit of, the United States
“U.S. Government Obligations” means all direct claims (including securities, loans, and leases) on, and
the portions of claims that are directly and unconditionally guaranteed by the United States
Government or its agencies.
“U.S. Government agency” means an instrumentality of the U.S. Government the debt Obligations of
which are fully guaranteed as to the timely payment of principal and interest by the full faith and credit
of the U.S. Government. This category includes in addition to direct claims on, and the portions of
claims that are directly and unconditionally guaranteed by, the United States Government agencies
listed below, claims collateralized by securities issued or guaranteed by the U.S. government agencies
listed below for which a positive margin of collateral is maintained on a daily basis, fully taking into
account any change in the insurance company's exposure to the obligor or counterparty under a claim
in relation to the market value of the collateral held in support of that claim.
For the list of U.S. government agencies referenced above see the Purposes and Procedures Manual of the
NAIC Securities Valuation Office Part Two, Section 4(c)(i)
© 2012 National Association of Insurance Commissioners
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All Other Governments:
This includes bond investments issued by non-U.S. governments, including bonds of political subdivisions and
special revenue. This includes bonds issued by utilities owned by non-U.S. governments and bonds fully
guaranteed by non-U.S. governments.
U.S. States, Territories and Possessions (Direct and Guaranteed):
General obligations of these entities (NAIC members), as well as bonds issued by utility companies owned by
these entities. NAIC membership is composed of the 50 states, the District of Columbia, American Samoa,
Guam, Northern Marianna Islands, Puerto Rico, and the U.S. Virgin Islands.
U.S. Political Subdivisions of States, Territories and Possessions (Direct and Guaranteed):
General obligations of cities, counties, townships, etc., as well as bonds issued by utility companies owned by
these entities.
U.S. Special Revenue and Special Assessment Obligations and all Non-Guaranteed Obligations of Agencies and
Authorities of Governments and Their Political Subdivisions:
Those U.S. government issues not listed in Part Six, Section 2(e) of the Purposes and Procedures Manual of the
NAIC Securities Valuation Office, yet included in Part Two, Section 4(c)(ii). This category also includes bonds
that are issued by states, territories, possessions and other political subdivisions that are issued for a specific
financing project rather than as general obligation bonds.
Industrial and Miscellaneous (Unaffiliated):
This category includes all non-governmental issues that do not qualify for some other category in Schedule D,
Part 1, including privatized (non-government ownership) utility companies, Class One Bond Mutual Fund as
listed in Part Six, Section 2(h) of the Purposes and Procedures Manual of the NAIC Securities Valuation Office
and Exchange Traded Funds listed in Part Six, Section 2(i) of the Purposes and Procedures Manual of the
NAIC Securities Valuation Office. Include Public Utilities.
Hybrid Securities:
Securities whose proceeds are accorded some degree of equity treatment by one or more of the nationally
recognized statistical rating organizations and/or which are recognized as regulatory capital by the issuer’s
primary regulatory authority. Hybrid securities are designed with characteristics of debt and of equity and are
intended to provide protection to the issuer’s senior note holders. Hybrid securities products are sometimes
referred to as capital securities. Examples of hybrid securities include Trust Preferreds, Yankee Tier 1s
(with and without coupon step-ups) and debt-equity hybrids (with and without mandatory triggers).
This specifically excludes surplus notes, which are reported in Schedule BA; subordinated debt issues,
which have no coupon deferral features; and “Traditional” preferred stocks, which are reported in Schedule D,
Part 2, Section 1. With respect to preferred stock, traditional preferred stocks include, but are not limited to
a) U.S. issuers that do not allow tax deductibility for dividends; and b) those issued as preferred stock of the
entity or an operating subsidiary, not through a trust or a special purpose vehicle.
Parent, Subsidiaries and Affiliates:
Defined by SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated entities, A Replacement of
SSAP No. 88
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