Official NAIC Annual Statement Instructions Distribution

1 Official naic Annual Statement Instructions Title For the 2020 reporting year Adopted by the naic as of June 2020 UPDATES TO THESE Instructions There may be modifications to these Instructions from year to year. As such, guidance is subject to the maintenance process. Revision bars in the left margin identify changes from the previous year, and modifications that may occur during the current year are made available on the naic website at CONTENT QUESTIONS Questions regarding the content of these Instructions should be directed to Calvin Ferguson, Senior Insurance Reporting Analyst, at ORDER INQUIRIES Order inquiries may be addressed by an naic customer service representative at Not for Distribution The naic is the authoritative source for insurance industry information. Our expert solutions support the efforts of regulators, insurers and researchers by providing detailed and comprehensive insurance information.

2 The naic offers a wide range of publications in the following categories: Accounting & Reporting Information about statutory accounting principles and the procedures necessary for filing financial Annual statements and conducting risk-based capital calculations. Special Studies Studies, reports, handbooks and regulatory research conducted by naic members on a variety of insurance-related topics. Consumer Information Important answers to common questions about auto, home, health and life insurance as well as buyer s guides on annuities, long-term care insurance and Medicare supplement plans. Statistical Reports Valuable and in-demand insurance industry-wide statistical data for various lines of business including auto, home, health and life insurance. Financial Regulation Useful handbooks, compliance guides and reports on financial analysis, company licensing, state audit requirements and receiverships. Supplementary Products Guidance manuals, handbooks, surveys and research on a wide variety of issues.

3 Legal Comprehensive collection of naic model laws, regulations and guidelines; state laws on insurance topics; and other regulatory guidance on antifraud and consumer privacy. Capital Markets & Investment Analysis Information regarding portfolio values and procedures for complying with naic reporting requirements. Market Regulation Regulatory and industry guidance on market-related issues, including antifraud, product filing requirements, producer licensing and market analysis. White Papers Relevant studies, guidance and naic policy positions on a variety of insurance topics. naic Activities naic member directories, in-depth reporting of state regulatory activities and Official historical records of naic national meetings and other activities. For more information about naic publications, visit us at: 1992-2020 National Association of Insurance Commissioners. All rights reserved. ISBN: 978-1-64179-082-6 Printed in the United States of America No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any storage or retrieval system, without written permission from the naic .

4 naic Executive Office 444 North Capitol Street, NW Suite 700 Washington, DC 20001 naic Central Office 1100 Walnut Street Suite 1500 Kansas City, MO 64106 naic Capital Markets & Investment Analysis Office One New York Plaza, Suite 4210 New York, NY 10004 Not for Distribution 1992 2020 National Association of Insurance Commissioners Title 2020 iTABLE OF CONTENTS Page # Annual Statement General Foreword .. 1 General .. 3 Actuarial Opinion .. 7 Annual Audited Financial Reports .. 17 Management s Discussion and 19 Financial Statement Jurat Page .. 25 Assets .. 30 Liabilities, Surplus and Other Funds .. 39 Operations and Investment Exhibit Statement of Income and Capital and Surplus Account .. 45 Cash Flow .. 51 Operations and Investment Exhibit Part 1A Summary of Title Insurance Premiums Written and Related Revenues .. 65 Part 1B Premiums Earned Exhibit .. 67 Part 2A Losses Paid and Incurred .. 69 Part 2B Unpaid Losses and Loss Adjustment Expenses.

5 71 Part 3 Expenses .. 74 Part 4 Net Operating Gain/Loss Exhibit .. 90 Exhibit of Net Investment Income .. 93 Exhibit of Capital Gains (Losses) .. 97 Exhibit of Nonadmitted Assets .. 100 Notes to Financial Statements .. 101 General Interrogatories .. 237 Five-Year Historical Data .. 242 State Page .. 249 Schedule E Part 1D Summary Segregated Funds Held for Others and Company Funds on Hand and on Deposit .. 253 Schedule F General Instructions .. 255 Part 1 Assumed Reinsurance as of December 31, Current Year .. 260 Part 2 Ceded Reinsurance as of December 31, Current Year .. 263 Part 3 Provision for Unauthorized Reinsurance as of December 31, Current Year .. 267 Part 4 Provision for Reinsurance Ceded to Certified Reinsurers as of December 31, Current Year .. 270 Schedule H Part 1 Title Plants Owned at December 31 Current Year and Basis of Valuation .. 275 Part 2 Title Plants Acquired During the Year.

6 277 Part 3 Title Plants Sold or Otherwise Disposed of During the Year .. 279 Verification Between Years .. 281 Part 4 Total Title Assets Held Directly or By Subsidiaries .. 282 Not for Distribution 1992 2020 National Association of Insurance Commissioners Title 2020 ii Page # Schedule P General Instructions .. 283 Part 1 Summary .. 285 Part 1A Policies Written Directly .. 287 Part 1B Policies Written Through Agents .. 287 Part 2 .. 287 Part 2A .. 287 Part 2B .. 288 Part 2C .. 288 Part 2D .. 288 Part 3 .. 288 Part 3A .. 289 Part 3B .. 289 Part 3C .. 289 Part 4 .. 289 Part 4A .. 289 Part 4B .. 290 Part 4C .. 290 Part 5 .. 290 Part 5A .. 290 Part 5B .. 290 Part 5C .. 290 Schedule T Exhibit of Premiums Written Premium and Annuity Considerations .. 291 Schedule Y Information Concerning Activities of Insurer Members of a Holding Company Group Part 1 Organizational Chart .. 295 Part 1A Detail of Insurance Holding Company System .. 296 Part 2 Summary of Insurer's Transactions with Any Affiliates.

7 300 Investment Schedules Investment Schedules General Instructions .. 303 Summary Investment Schedules and Verifications (SI Pages) Summary Investment Schedule .. 311 Schedule A Verification Between Years Real Estate .. 319 Schedule B Verification Between Years Mortgage Loans .. 321 Schedule BA Verification Between Years Long-Term Invested Assets .. 323 Schedule D Verification Between Years Bonds and Stocks .. 325 Summary By Country Long-Term Bonds and Stocks Owned December 31 of Current Year .. 327 Part 1A Section 1 Quality and Maturity Distribution of All Bonds Owned December 31 by Major Type and naic Designation .. 328 Section 2 Maturity Distribution of All Bonds Owned December 31 by Major Type and Sub-Type .. 331 Not for Distribution 1992 2020 National Association of Insurance Commissioners Title 2020 iii Page # Schedule DA Verification Between Years Short-Term Investments.

8 334 Schedule DB Part A Verification Between Years Options, Caps, Floors, Collars, Swaps and Forwards .. 336 Part B Verification Between Years Futures Contracts .. 337 Part C Section 1 Replication (Synthetic Asset) Transactions (RSAT) Open on December 31 of Current Year .. 339 Section 2 Reconciliation of Replication (Synthetic Asset) Transactions Open .. 341 Verification .. 342 Schedule E Part 2 Verification Between Years Cash Equivalents .. 343 Detail Investment Schedules (E Pages) Schedule A Part 1 Real Estate Owned December 31 of Current Year .. 345 Part 2 Real Estate Acquired and Additions Made During the Year .. 350 Part 3 Real Estate Disposed During the Year .. 353 Schedule B General Instructions .. 357 Part 1 Mortgage Loans Owned December 31 of Current Year .. 360 Part 2 Mortgage Loans Acquired During the Year .. 363 Part 3 Mortgage Loans Disposed, Transferred or Repaid in During the Year.

9 365 Schedule BA General Instructions .. 369 Part 1 Other Long-Term Invested Assets Owned December 31 of Current Year .. 375 Part 2 Other Long-Term Invested Assets Acquired During the Year .. 383 Part 3 Other Long-Term Invested Assets Disposed, Transferred or Paid in Full During the Year .. 387 Schedule D Part 1 Long-Term Bonds Owned December 31 of Current Year .. 393 Part 2 Section 1 Preferred Stocks Owned December 31 of Current 409 Section 2 Common Stocks Owned December 31 of Current 418 Part 3 Long-Term Bonds and Stocks Acquired During Current Year .. 427 Part 4 Long-Term Bonds and Stocks Sold, Redeemed or Otherwise Disposed of During Current 432 Part 5 Long-Term Bonds and Stocks Acquired During the Current Year and Fully Disposed of During Current Year .. 439 Part 6 Section 1 Valuation of Shares of Subsidiary, Controlled or Affiliated Companies .. 446 Section 2.

10 450 Schedule DA Part 1 Short-Term Investments Owned December 31 of Current Year .. 451 Not for Distribution 1992 2020 National Association of Insurance Commissioners Title 2020 iv Page # Schedule DB Derivative Instruments General Instructions .. 459 Part A General Instructions .. 462 Section 1 Options, Caps, Floors, Collars, Swaps and Forwards Open December 31 of Current Year .. 467 Section 2 Options, Caps, Floors, Collars, Swaps and Forwards Terminated During the Year .. 475 Part B General Instructions .. 481 Section 1 Futures Contracts Open December 31 of Current Year .. 483 Section 2 Futures Contracts Terminated During the 489 Part D Section 1 Counterparty Exposure for Derivative Instruments Open December 31 of Current Year .. 493 Section 2 Collateral for Derivative Instruments Open December 31 of Current Year .. 497 Part E Derivatives Hedging Variable Annuity Guarantees.