Exposure Drafts Outstanding
Statutory Accounting Principles Working Group
Last Updated November 8, 2017

Please address comment letters to Dale Bruggeman, Chair of the Statutory Accounting Principles (E) Working Group, and direct to Julie Gann, Robin Marcotte, Fatima Sediqzad and Jake Stultz.


Ref No. Issue Paper/ SSAP No./ Appendix Title Description


SSAP No. 86
Schedule DB

Impact of Future Settled Premiums on Option Valuations

Exposed revisions to capture individual contract disclosures for derivatives with financing premiums, along with proposed changes to Schedule DB to reflect these disclosure requirements for year-end 2018.


SSAP No. 68
SSAP No. 97

Goodwill Limitation in SSAP Nos. 68 and 97

Exposed revisions to expand goodwill disclosures.


SSAP No. 41
SSAP No. 97

Double-Counting of Surplus Notes

Exposed revisions to clarify that an SCA’s acquisition of a surplus note issued by the parent shall always be eliminated in the SCA’s value reported by the parent insurance company.


SSAP No. 92
SSAP No. 102

Updates to the Presentation and Disclosure of Pension and Postretirement

Exposed revisions to remove the Level 3 reconciliation disclosure.


SSAP No. 103R

Wash Sale Disclosure

Exposed revisions to exclude all cash equivalents, derivative instruments as well as short-term investments with credit assessments equivalent to an NAIC 1-2 from the wash sale disclosure. Proposed revisions also clarify that the wash sale disclosure should be captured in the financial reporting statement for the period in which the investment was sold.


SSAP No. 30

SSAP No. 30 - Investment Classification Project

Exposed for comment proposed concepts to update SSAP No. 30. Key elements address the definition of common stock, the inclusion of closed-end funds and unit investment trusts, and consideration of the VOSTF referral to allow NAIC designations to be reported on D-2-2 for certain investments.


Appendix D

FASB Codification References

Exposed for comment the proposed project to identify FASB Codification references for U.S. GAAP guidance reflected in SSAP.


SSAP No. 49
SSAP No. 56

Policy Loans

Exposed for comment key concepts noted in the agenda item for discussion to determine how to move forward in clarifying the policy loan guidance.


Appendix H

INT Updates

Exposed revisions to extend INT 02-22 and update and nullify INT 09-08.

2017-37 and 2016-19

SSAP No. 47

Revenue Recognition ASUs

Exposed revisions to reject noted FASB ASUs in SSAP No. 47


There are no advance materials at this time.

INT 17-01: Extension of Ninety-Day Rule for the Impact of Hurricane Harvey, Hurricane Irma and Hurricane Maria
This interpretation temporarily extends the 90-day rule per paragraph 6 of SSAP No. 6 for policies impacted by Hurricane and Tropical Storm Harvey, Hurricane and Tropical Storm Irma, Hurricane and Tropical Storm Maria, and related flooding. This interpretation will be automatically nullified on February 16, 2018.

Subsidiary, Controlled or Affiliated (SCA)

Relating SVO Unit Prices to the Fair Value Hierarchy

Structured Securities

Accounting Practices and Procedures Manual Updates

SSAP No. 43R flowchart

SAPWG Maintenance Agenda Submission Form (Form A)
See Policy Statement on SAPWG Maintenance Agenda Process for description and instruction. After completion of the Form A, please send to NAIC staff via email (see contact information below) for review. NAIC staff will send a confirmation of receipt. In order for NAIC staff to place the Form A on the Agenda, the Form A must be received no later than the comment deadline.

Maintenance Agenda
Updated October 31, 2017

SAP to Annual Statement Disclosure Checklist Updated for 2016 Annual Statements
Updated 1/31/2017

Please note, in an effort to go green, the spreadsheets are spaced to view the entire width on a computer screen. At other percentages or if printing, some detail may be lost.

Policy Statements
See Appendix F – Policy Statements of the Accounting Practices and Procedures Manual for a complete listing.


Education & Training Events

Related NAIC Publications


Statutory Accounting Principles (E)
Working Group

The Statutory Accounting Principles (E) Working Group is responsible for developing and adopting substantive, nonsubstantive and interpretation revisions to the NAIC Accounting Practices and Procedures Manual (AP&P Manual). The AP&P Manual provides the basis for insurers to prepare financial statements for financial regulation purposes.

Substantive statutory accounting revisions introduce original or modified accounting principles. Substantive revisions can be reflected in an existing Statement of Statutory Accounting Principles (SSAP) or a new SSAP. Nonsubstantive statutory accounting revisions are characterized as language clarifications that do not modify the original intent of a SSAP. SSAPs are considered the highest authority (Level 1) in the statutory accounting hierarchy.

An interpretation to an existing SSAP may be developed to provide timely application, interpretation or clarification guidance. Revisions classified as an interpretation shall not amend, supersede or conflict with existing, effective SSAPs. Interpretations are considered the second highest authority (Level 2) in the statutory accounting hierarchy.

Items for consideration by the Working Group can be submitted via a SAPWG Maintenance Agenda Submission Form (Form A) to the NAIC staff support listed on this Web page.

2018 Charges
  1. Maintain codified statutory accounting principles by providing periodic updates to the guidance that address new statutory issues and new generally accepted accounting principles (GAAP) pronouncements. Provide authoritative responses to questions of application and clarifications for existing statutory accounting principles. Report all actions and provide updates to the Accounting Practices and Procedures (E) Task Force.

  2. At the discretion of the Working Group chair, develop comments on exposed GAAP and International Financial Reporting Standards (IFRS) pronouncements affecting financial accounting and reporting. Any comments are subject to review and approval by the chairs of the Accounting Practices and Procedures (E) Task Force and the Financial Condition (E) Committee.

  3. Coordinate with the Life Actuarial (A) Task Force on changes to the Accounting Practices and Procedures Manual (AP&P Manual) related to the Valuation Manual VM-A, Requirements, and VM-C, Actuarial Guidelines, as well as other Valuation Manual requirements. This process will include the receipt of periodic reports on changes to the Valuation Manual on items that require coordination.

  4. Obtain, analyze and review information on permitted practices, prescribed practices or other accounting treatments suggesting that issues or trends occurring within the industry may compromise the consistency and uniformity of statutory accounting, including, but not limited to, activities conducted by insurers for which there is currently no statutory accounting guidance or where the states have prescribed statutory accounting that differs from the guidance issued by the NAIC. Use this information to consider possible changes to statutory accounting.

  5. Develop specific statutory accounting guidance for certain limited derivative contracts hedging variable annuity guarantees, subject to fluctuations as a result of interest rate sensitivity, reserved for in accordance with Actuarial Guideline XLIII-CARVM for Variable Annuities (AG 43). This guidance shall place an emphasis on reducing non-economic surplus volatility for these specific hedges in situations where strong risk-management is in place, with safeguards to ensure appropriate financial statement presentation and disclosures, sufficient transparency, and regulatory oversight. This charge shall be a high priority, with the earliest effective date feasible that allows for adequate development of guidance and related reporting schedules. Complete by the 2018 Fall National Meeting

  6. Consider whether current or future changes to reserves resulting from implementation of the Variable Annuities Framework for Change will be reported in the annual financial statement as a "change in basis." Complete by the 2018 Fall National Meeting

The following Subgroup reports to the Statutory Accounting Principles Working Group:

For revisions adopted by the Working Group, please refer to the Accounting Practices and Procedures Manual Updates Web page