Actions of the Statutory Accounting Principles (E) Working Group. On November 19, 2015, the Working Group moved agenda item 2015-47: Principles Based directed NAIC staff to: 1) develop an issue paper; 2) propose substantive amendments to Reserving SSAP relevant SSAPs or separate statement as needed to address PBR; and 3) continue to work with industry representatives and regulators throughout the development of these items. On April 3, 2016, the Working Group exposed substantive revisions to SSAP No. to incorporate references to the and to facilitate the Contracts Valuation Manual implementation of principle-based reserving. On June 9, 2016, the Working Group adopted the substantive revisions SSAP No. (resulting in SSAP No. 51R). Contracts Interested parties comments to the Working Group were supportive of adopting the revisions in agenda item 2015-47. Agenda item 2016-15: Change in Valuation Basis for Life Contracts, was exposed by the Working Group on June 9, 2016. The Life Actuarial (A) Task Force was notified of the exposure. The Task Force reviewed the issue but did not provide comments. Interested parties comments to the Working Group were supportive of adopting the proposed change in valuation basis language and other amendments to SSAP No. 51R. On August 26, 2016 the Working Group adopted agenda item 2016-15. Effective Date The substantively-revised SSAP reflects the adopted Summary Conclusion of this issue paper. Users of the NAIC should note that issue papers are not Accounting Practices and Procedures Manual represented in the Statutory Hierarchy (see Section V of the Preamble) and therefore the conclusions reached in this issue paper should not be applied until the corresponding SSAP has been adopted by the NAIC Executive (EX) and Plenary of the NAIC. The SSAP No. 51R revisions from agenda items 47 and 2016-15 contain an effective date of reporting periods after January 1, 2017. The revisions outlined this Issue Paper shall be applied on a prospective basis. RELEVANT STATUTORY ACCOUNTING AND GAAP GUIDANCE Annual Statement Reporting Considerations The include the following in the Summary of Operations, Life Annual Statement Instructions Capital and Surplus Account:
Actions of the Statutory Accounting Principles (E) Working Group. On November 19, 2015, the Working Group moved agenda item 2015-47: Principles Based Reserving SSAP directed NAIC staff to: 1) develop an issue paper; 2) propose substantive amendments to relevant SSAPs or separate statement as needed to address PBR; and 3) continue to work with industry representatives and regulators throughout the development of these items. On April 3, 2016, the Working Group exposed substantive revisions to SSAP No. Contracts to incorporate references to the Valuation Manual and to facilitate the implementation of principle-based reserving. On June 9, 2016, the Working Group adopted the substantive revisions SSAP No. Contracts (resulting in SSAP No. 51R). Interested parties comments to the Working Group were supportive of adopting the revisions in agenda item 2015-47. Agenda item 2016-15: Change in Valuation Basis for Life Contracts, was exposed by the Working Group on June 9, 2016. The Life Actuarial (A) Task Force was notified of the exposure. The Task Force reviewed the issue but did not provide comments. Interested parties comments to the Working Group were supportive of adopting the proposed change in valuation basis language and other amendments to SSAP No. 51R. On August 26, 2016 the Working Group adopted agenda item 2016-15. Effective Date The substantively-revised SSAP reflects the adopted Summary Conclusion of this issue paper. Users of the NAIC Accounting Practices and Procedures Manual should note that issue papers are not represented in the Statutory Hierarchy (see Section V of the Preamble) and therefore the conclusions reached in this issue paper should not be applied until the corresponding SSAP has been adopted by the NAIC Executive (EX) and Plenary of the NAIC. The SSAP No. 51R revisions from agenda items and 2016-15 contain an effective date of reporting periods after January 1, 2017. The revisions outlined this Issue Paper shall be applied on a prospective basis. RELEVANT STATUTORY ACCOUNTING AND GAAP GUIDANCE Annual Statement Reporting Considerations The Life Annual Statement Instructions include the following in the Summary of Operations, Capital and Surplus Account: 47
cmte_e_app_sapwg_exposure_ip_15x.docx