Codification Update
Presented by:
Dave Christensen
NAIC Statutory Accounting
Principles Manager
Dave Christensen
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Statutory Accounting Principles Manager
Supports following NAIC working groups:
– Statutory Accounting Principles WG
– Emerging Accounting Issues WG
– NAIC/AICPA WG
– Underwriting & Reinsurance Pools WG
Specialize in accounting for P/C entities
Joined NAIC in October 1997
Audit Manager with Deloitte & Touche
Brief career as a golf professional
Graduate of Kansas State University
CPA, AICPA
© National Association of Insurance Commissioners 2000
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Overview of Presentation
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Brief history of Codification project
Discussion of maintenance process
Review of current issues
Review changes from 1999 version to 2000
version of the Accounting Practices and
Procedures Manual - Effective 1/1/01
Implementation issues
© National Association of Insurance Commissioners 2000
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History of the Project
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1989 & 1991 solvency agenda
Comprehensive guide & comparability
AICPA white paper
1994 project reorganized
Statement of position 95-5
Adopted by NAIC in March 1998
Current AICPA position
© National Association of Insurance Commissioners 2000
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Maintenance Process
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Maintenance governed by Policy
Statements
Functions of Statutory Accounting
Principles WG
Functions of Emerging Accounting Issues
WG
Agenda process
Publication of the manual
© National Association of Insurance Commissioners 2000
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Maintenance Flowchart
LEVEL 1
LEVEL 2
GAAP Status Report
Disposition Report
Substantive List
Pending List
Active Report
Rejected Report
Nonsubstantive List
All Other Sources
LEVEL 3
Active Report
Disposition Report
© National Association of Insurance Commissioners 2000
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Website information
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Statutory Accounting Principles WG
– www.naic.org
Products
and Services
Financial Date Reporting
Statutory Acctg Principles WG
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– http://www.naic.org/finance/codific/codtoc2.htm
Emerging Accounting Issues WG
– www.naic.org
Products
and Services
Financial Date Reporting
Emerging Accounting Issues WG
– http://www.naic.org/emerging/index.htm
© National Association of Insurance Commissioners 2000
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Current Issues
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Statutory Accounting Principles WG
Maintenance Agenda
– Pending Listing
– Active Reports
– Disposition Reports
– Rejected Listing
 EAIWG Status of Issues
© National Association of Insurance Commissioners 2000
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Layout of March 2000 Version
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Volume I
– SSAPs
– Index
– Glossary
– Appendix A - Model Laws
– Appendix B - INTs
– Appendix C - Actuarial
– Appendix D - GAAP X-Ref
Volume II
– Appendix E - IPs
– Appendix F - Policy
© National Association of Insurance Commissioners 2000
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Changes from 1999 Version to
March 2000 Version
1999
2000
All changes are in effect for fiscal
periods beginning January 1, 2001
 New rules will be reflected in 1st
quarter 2001 statements
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© National Association of Insurance Commissioners 2000
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SSAP Update
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Use of “FV”, “MV” and “FMV”
SSAP No. 8 - Adoption of FAS No. 132
SSAP No. 14 - Adoption of FAS No. 132
SSAP No. 35 - Rejection of SOP 97-3
SSAP No. 53 - Added guidance for
advance premiums
SSAP No. 65 - Language added to clarify
non-tabular discounting not acceptable
NAIC accounting practice
© National Association of Insurance Commissioners 2000
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Other Update
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Index to SSAPs
 Glossary
© National Association of Insurance Commissioners 2000
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Appendix A Update
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A-010
– Language added throughout SSAP in order
to conform with changes made to the NAIC
Health Insurance Reserves Model
Regulation
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Appendix B Update
No.
INT 99-1
INT 99-2
INT 99-3
INT 99-4
INT 99-5
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
Disposition
Adopt
No Consensus
Adopt
Adopt
Reject
Reject
Reject
Reject
Reject
Adopt
Reject
Reject
Reject
Adopt
Reject
Adopt
Adopt
No.
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
INT 00-01
INT 00-02
INT 00-03
Disposition
Adopt
Reject
Reject
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
Adopt
© National Association of Insurance Commissioners 2000
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Appendix C Update
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Appendix C now contains Actuarial
Guidelines
 Prior to addition they resided in the NAIC
Financial Examiners Handbook
© National Association of Insurance Commissioners 2000
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Appendix D Update
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This listing has been updated to reflect the
current status of GAAP Pronouncements
as of December 6, 1999
 This listing has been updated to reflect the
current status of EITF Issues as of
September 22, 1999
© National Association of Insurance Commissioners 2000
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Appendix E Update
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IP No. 8 - Adoption of FAS No. 132
IP No. 14 - Adoption of FAS No. 132
IP No. 30 - Deleted language on wash
sales
IP No. 35 - Rejection of SOP 97-3
IP No. 54 - Revised to be consistent with
NAIC Health Insurance Reserves Model
IP No. 56 - Clarification of acctg and
reporting for deposit-type contracts
IP No. 99 - Updated for N/A GAAP
© National Association of Insurance Commissioners 2000
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Appendix F Update
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Now contains NAIC Policy Statements
specific to statutory accounting principles
© National Association of Insurance Commissioners 2000
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State Implementation
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Named the Accounting Practices & Procedures
Manual
– Some states can adopt by name alone
– Others require legislature
 States are currently reviewing their code and
regulations.
 ACLI, AAI, AIA, NAII and NAMIC have contacted
states to determine states implementation plans
and have summarized these plans in a chart.
© National Association of Insurance Commissioners 2000
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© National Association of Insurance Commissioners 2000
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