Article
Updates from the SAPWG at the NAIC October 2020 Conference Calls
Oct. 21, 2020 · Authored by Daniel E. Buttke, Jeff Maffitt
This report summarizes key activities of the National Association of Insurance Commissioners (NAIC) Statutory Accounting Principles (E) Working Group (SAPWG) conference calls on Oct. 13 and Oct. 15, 2020. Our insurance Value Architects™ attended these virtual meetings to monitor regulatory updates. SAPWG met to discuss a variety of topics, including preferred stock, loan-backed and structured securities, levelized and persistency commissions, and more.
Insurance organizations should take note of these changes as they may significantly affect their accounting in 2020 and beyond.
Adopted revisions to statutory guidance
SSAP No. 32R – Preferred Stock
Ref #2020-31: Early Application of SSAP No. 32R – Preferred Stock
Adopted revisions to SSAP No. 32R allow early adoption for year-end 2020 reporting of the substantive revisions to SSAP No. 32R which were adopted during the Summer 2020 National Meeting with an effective date of Jan. 1, 2021.
Appendix D – Nonapplicable GAAP Pronouncements
Adopted revisions in the following agenda items reject the referenced FASB ASUs as not applicable to statutory accounting:
- Ref #2020-26: ASU 2015-10, Technical Corrections and Improvements
- Ref #2020-27: ASU 2019-09, Financial Services – Insurance, Effective Date
- Ref #2020-29: ASU 2020-05, Revenue from Contracts with Customers and Leases, Effective Dates for Certain Entities
SSAP No. 48 – Joint Ventures, Partnerships and Limited Liability Companies, SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities and SSAP No. 86 – Derivatives
Ref #2020-28: ASU 2020-01, Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), Clarifying the Interactions between Topic 321, Topic 323, and Topic 815
Adopted revisions to SSAP No. 48, SSAP No. 97 and SSAP No. 86 reject ASU 2020-01 for statutory accounting.
