TABLE OF CONTENTS - naic.org

1 I Accounting Practices and Procedures Manual As of March 2015 TABLE OF CONTENTS Page How to Use This Manual .. xvii Summary of Changes to the As of March 2014 Version of the Accounting Practices and Procedures Manual .. xxiii Statements of Statutory Accounting Principles (SSAP) - Vo lume I Completely superseded SSAPs and nullified interpretations (INTs) are removed from the printed Accounting Practices and Procedures Manual and posted on the "Updates to the Accounting Practices and Procedures Manual" password-protected webpage ( ). These items are also included in Appendix H Superseded SSAPs and Nullified Interpretations within the Accounting Practices and Procedures Manual Folio View CD-RO M.

2 No. Tit le Page - Preamble .. P-1 1 Disclosure of Accounting Policies, Risks & Uncertainties, and Other 1-1 2 Cash, Drafts, and Short-term Investments .. 2-1 3 Accounting Changes and Corrections of Errors .. 3-1 4 Assets and Nonadmitted Assets .. 4-1 5R Liabilities, Contingencies and Impairments of Assets .. 5R-1 6 Uncollected Premium Balances, Bills Receivable for Premiums, and Amounts Due From Agents and Brokers .. 6-1 7 Asset Valuation Reserve and Interest Maintenance Reserve .. 7-1 9 Subsequent Events .. 9-1 11 Postemployment Benefits and Compensated Absences .. 11-1 12 Employee Stock Ownership Plans .. 12-1 15 Debt and Holding Company Obligations.

3 15-1 16R Electronic Data Processing Equipment and Accounting for Software .. 16R-1 17 Preoperating and Research and Development Costs .. 17-1 19 Furniture, Fixtures and Equipment; Leasehold Improvements Paid by the Reporting Entity as Lessee; Depreciation of Property and Amortization of Leasehold Improvements .. 19-1 20 Nonadmitted Assets .. 20-1 21 Other Admitted Assets .. 21-1 22 Leases .. 22-1 23 Foreign Currency Transactions and Translations .. 23-1 24 Discontinued Operations and Extraordinary Items .. 24-1 25 Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties .. 25-1 26 Bonds, Excluding Loan-Backed and Structured Securities.

4 26-1 27 Disclosure of Information about Financial Instruments with Off-Balance-Sheet Risk and Financial Instruments with Concentrations of Credit Risk .. 27-1 29 Prepaid Expenses .. 29-1 30 Investments in Common Stock (excluding investments in common stock of subsidiary, controlled, or affiliated entities) .. 30-1 32 Investments in Preferred Stock (including investments in preferred stock of subsidiary, controlled, or affiliated entities) .. 32-1 1999-2015 National Association of Insurance Commissioners TABLE of CONTENTS ii No. Tit le Page 34 Investment Income Due and Accrued .. 34-1 35R Guaranty Fund and Other Assessments.

5 35R-1 36 Troubled Debt Restructuring .. 36-1 37 Mortgage Loans .. 37-1 38 Acquisition, Development and Construction Arrangements .. 38-1 39 Reverse Mortgages .. 39-1 40R Real Estate Investments .. 40R-1 41 Surplus Notes .. 41-1 42 Sale of Premium Receivables .. 42-1 43R Loan-Backed and Structured Securities .. 43R-1 44 Capitalization of Interest .. 44-1 47 Uninsured Plans .. 47-1 48 Joint Ventures, Partnerships and Limited Liability Companies .. 48-1 49 Policy Loans .. 49-1 50 Classifications and Definitions of Insurance or Managed Care Contracts in Force .. 50-1 51 Life Contracts .. 51-1 52 Deposit-Type Contracts .. 52-1 53 Property Casualty Contracts Premiums.

6 53-1 54 Individual and Group Accident and Health Contracts .. 54-1 55 Unpaid Claims, Losses and Loss Adjustment Expenses .. 55-1 56 Separate Accounts .. 56-1 57 Title Insurance .. 57-1 58 Mortgage Guaranty Insurance .. 58-1 59 Credit Life and Accident and Health Insurance Contracts .. 59-1 60 Financial Guaranty Insurance .. 60-1 61R Life, Deposit-Type and Accident and Health Reinsurance .. 61R-1 62R Property and Casualty Reinsurance .. 62R-1 63 Underwriting Pools and Associations Including Intercompany Pools .. 63-1 64 Offsetting and Netting of Assets and Liabilities .. 64-1 65 Property and Casualty Contracts .. 65-1 66 Retrospectively Rated Contracts.

7 66-1 67 Other Liabilities .. 67-1 68 Business Combinations and Goodwill .. 68-1 69 Statement of Cash Flow .. 69-1 70 Allocation of Expenses .. 70-1 71 Policy Acquisition Costs and Commissions .. 71-1 72 Surplus and Quasi-Reorganizations .. 72-1 73 Health Care Delivery Assets Supplies, Pharmaceuticals and Surgical Supplies, Durable Medical Equipment, Furniture, Medical Equipment and Fixtures, and Leasehold Improvements in Health Care Facilities .. 73-1 74 Accounting for the Issuance of Insurance-Linked Securities Issued by a Property and Casualty Insurer Through a Protected Cell .. 74-1 76 Reporting on the Costs of Start-Up Activities.

8 76-1 78 Multiple Peril Crop Insurance .. 78-1 83 Mezzanine Real Estate Loans .. 83-1 84 Certain Health Care Receivables and Receivables Under Government Insured Plans .. 84-1 86 Accounting for Derivative Instruments and Hedging, Income Generation, and Replication (Synthetic Asset) Transactions .. 86-1 90 Accounting for the Impairment or Disposal of Real Estate Investments .. 90-1 92 Accounting for Postretirement Benefits Other than Pensions, A Replacement of SSAP No. 14 .. 92-1 1999-2015 National Association of Insurance Commissioners TABLE of CONTENTS iii No. Tit le Page 93 Accounting for Low Income Housing Tax Credit Property Investments.

9 93-1 94R Accounting for Transferable State Tax Credits .. 94R-1 95 Exchanges of Nonmonetary Assets, A Replacement of SSAP No. 28 Nonmonetary Transactions .. 95-1 97 Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 88 .. 97-1 100 Fair Value Measurements .. 100-1 101 Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10 .. 101-1 102 Accounting for Pensions, A Replacement of SSAP No. 89 .. 102-1 103 Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities .. 103-1 104R Share-Based Payments .. 104R-1 105 Working Capital Finance 105-1 106 Affordable Care Act Section 9010 106-1 107 Accounting for the Risk-Sharing Provisions of the Affordable Care Act.

10 107-1 Page INDEX to Statements of Statutory Accounting Principles - Vo lume I .. 1 Page GLOSSARY to Statements of Statutory Accounting Principles - Vo lume I .. 21 Appendix A Excerpts of naic Model Laws Volume I No. Tit le Page A-001 Investments of Reporting Entities .. A001-1 A-010 Minimum Reserve Standards for Individual and Group Health Insurance Contracts .. A010-1 A-200 Separate Accounts Funding Guaranteed Minimum Benefits Under Group Contracts .. A200-1 A-205 Illustrative Disclosure of Differences Between naic Statutory Accounting Practices and Procedures and Accounting Practices Prescribed or Permitted by the State of Domicile.