Proprietary 2014 StoneRiver, Inc. Statutory Reporting Update Ohio Chapter IASA November 24, 2014...

Proprietary 2014 StoneRiver, Inc.Proprietary 2014 StoneRiver, Inc.

Statutory Reporting Update

Statutory Reporting Update

Ohio Chapter IASANovember 24, 2014Connie Jasper WoodroofStoneRiver, NAIC Liaison

Ohio Chapter IASANovember 24, 2014Connie Jasper WoodroofStoneRiver, NAIC Liaison

Proprietary 2014 StoneRiver, Inc.

AgendaAgenda

•2014 Annual Statement

•2014 RBC


2014 Annual Statement

2014 Annual Statement


General Interrogatories 25.2 - FHLBGeneral Interrogatories 25.2 - FHLB

Other Federal Home Loan Bank Changes

• Notes to Financials 5, 11

• “Code” column in Investment Schedules

• Associated SSAP changes: Nos. 1, 15, 30, 52

• RBC – All formulas


Note to Financials #5Note to Financials #5

Restricted Assets


Notes to Financials #11 - FHLBNotes to Financials #11 - FHLB

#11B(1) – General description; nature of agreement, type of borrowing and use of funding.



#11B(2) – Aggregate information on capital stock in general and specific information on membership stock available for redemption

Aggregate info for CY and PY



#11B(3)a – Collateral pledged; CY general account, CY separate accounts, CY combined total, PY combined total

#11B(3)b – Maximum amount pledge during reporting period; general account, total general and separate accounts


Investment Schedules – Code Column Investment Schedules – Code Column


Notes to Financials #5Notes to Financials #5

• Capital Finance Investments (5I)

• From adoption of SSAP No. 105



• Offsetting and Netting of Assets and Liabilities (5J)

• Moved from Note 21 to Note 5


Note to Financials #5Note to Financials #5

• Structured Notes (5K)

• Revisions to SSAP No. 26 and 43R

• Guidance posted on Blanks Working Group website

CUSIP Identification Actual Cost Fair ValueBook/Adjusted Carrying Value

Mortgage- Referenced

Security(Y/N)

Total XXX

Guidance posted on Blanks Working Group website


Notes to FinancialsNotes to Financials

• Note #12

• Multiemployer Plans

• Revisions to SSAP Nos. 92 and 102

• Note #21

• Move Joint and Several Liabilities disclosure from Note 21 to Note 14

• Note 14 renamed to Liabilities, Contingencies and Assessments



• Modification of PY Affordable Care Act (ACA) assessment information

• Now covered under new SSAP No. 106 (formerly under SSAP No. 35R)



• Risk sharing provisions (3Rs) of the Affordable Care Act (ACA) (24E)

• Currently INT 13-04, SSAP No. 35R

• Review carefully; part treated as reinsurance, part treated as contracts subject to redetermination, part treated as licenses, taxes and fees

• Separate SSAP being developed

• Hope to have in place for year-end reporting

• ACA Risk Sharing Programs Disclosures

• Annual and Quarterly

• Separate disclosures for each of the 3Rs plus roll-forward of prior years


ID ColumnsID Columns

• Reinsurance Schedules

• Instructional clarification of NAIC Company Code, Alien Insurer Identification Number (AIIN), Pool/Association Number and Certified Reinsurer Number (CRIN)

• Which entities are assigned which numbers

• NAIC Contact information for obtaining numbers

• Schedule Y – Parts 1A and 2

• Columnar heading change

• Federal ID Number now ID Number


Investment SchedulesInvestment Schedules

• Schedules A, B, BA

• Add postal code electronic column

• Schedule A – location of real estate

• Schedule B – location of real estate securing mortgage loans

• Schedule BA – location of properties for investments having the underlying characteristics of real estate and/or mortgage loans

• If multiple properties, list all zips from highest to lowest in property value



• Schedules A, B, BA

• Property type electronic column

• Primary use of property

OF – OfficeRT – RetailMU – Apartment/MultifamilyIN – IndustrialHC – Medical/Health CareMX – Mixed useLO – LodgingOT - Other

• If more than one property reported with more than one use, probably need to us OT – column limited to 2 digits; no specific instructions



• Schedule A, B, BA

• State column now accepts 3-character country code

• Schedules B, BA

• Maturity date electronic column

• Mortgage loans and those investments having the underlying characteristics of mortgage loans

• State date mortgage loan matures


Supplemental Compensation ExhibitSupplemental Compensation Exhibit

• New format for Part 2 – Officers and Employees

Listing still for top 10 employees/officers, but now must include PEO, PFO; next 3 most highly compensated executive employees if >$100,000; next 5 most highly compensated employees if >$100,000.



• New format for Part 3 – Directors

Applies to all Directors



• Provide a narrative description of any material factors necessary to gain an understanding of the information disclosed in the tables.

New Part 4 – Narrative Description of

Material Factors


LAH and FraternalLAH and Fraternal

• Actuarial Opinion

• Actuary must be appointed directly by, or by the authority of, Board of Directors; and report to Board or Audit Committee

• Actuary must meet certain qualifications

• Opinion must follow guidelines and standards

• Separate Actuarial Opinion for each company filing an annual statement

• Exhibit 5

• Modified definition of contingent deferred annuities (CDA) in instructions


LAH and Fraternal LAH and Fraternal

• Asset Valuation Reserve (AVR)

• New format for calculating mortgage loan and underlying characteristics of mortgage loan portion of AVR

• Utilized RBC mortgage loan division and treatment

• Supplemental Exhibits & Schedules Interrogatories

• Will Regulatory Asset Adequacy Issues Summary be filed with state by March 15?

• Will Actuarial Memorandum required by Actuarial Guidelines be filed with state by April 30?


LAH & Fraternal StatementLAH & Fraternal Statement

• New reinsurance supplement for XXX/AXXX products

• April 1 due date

• Part 1 – All XXX and AXXX cessions

• Policies valued under Section 6 of the NAIC Valuation of Life Insurance Policies Model Regulation (#830), commonly referred to as XXX

• Exempting Section 6E, 6F or 6G)

• Or, to ULSG policies required to be valued under Section 7 of Regulation XXX as clarified by the NAIC Actuarial Guideline XXXVII – The Application of the Valuation of Life Insurance Policies Model Regulation (A.G. 38), commonly referred to as AXXX




• Part 2 – Applies to all cessions listed in Part 1, not ceded to licensed, accredited or certified reinsurer; or not ceded to reinsurer domiciled in another jurisdiction; or not ceded to reinsurer maintaining a trust fund; or reinsurance not required by law




• Part 3 – Collateral for transactions listed in Part 2

• Prepare one Part 3 for each Cession ID listed in Part 2 and grand total page

• If no collateral for a cession, still must prepare a Part 3 with cession ID, name of company, NAIC company code, ID number

• Part 4 – For all affiliated reinsurance listed in Part 2

• Prepare one Part 4 for each Cession ID listed in Part 2 where the reinsurer is identified as an affiliate (Part 1, Column 10)

• Also prepare grand total page


LAH, Fraternal, HealthLAH, Fraternal, Health

• General Interrogatories – Part 2

• Question to capture direct written premium, incurred claims, and number of covered lives for CY ordinary life


LAH, Fraternal and HealthLAH, Fraternal and Health

• General Interrogatories – Part 2• Captive affiliates in Schedule S

1 2 3 4 Assets Supporting Reserve Credit

5 6 7

Company NameNAIC

Company CodeDomiciliary Jurisdiction Reserve Credit Letters of Credit Trust Agreements Other

Are any of the captive affiliates reported on Schedule S, Part 3 as authorized reinsurers? Yes [ ] No [ ]

If the answer to 28.1 is yes, please provide the following:


LAH, Fraternal and HealthLAH, Fraternal and Health

• Schedule S – Part 3 – format changes

6Type of

Reinsurance Ceded

7

Type of Business

Ceded

Insert available code to indicate type of business

Does NOT completely align With Analysis of Ops by LineOf Business

For 2014, must provide for captive reinsurance, A&H products; may report “Other”for other non-captive reins


HealthHealth

• Formal adoption of Exhibit 3A instructions issued in 2013 as guidance


Property/CasualtyProperty/Casualty

• Actuarial Opinion and Actuarial Opinion Summary Supplement (also Title companies)

• Includes revised reporting for pooled companies and other technical changes

• Add new line (2.4) to state page, IEE - Parts II and III for Private Crop

• Combined Statement

• Add statement contact person’s email address

• Will be shown on printed copy

• Will be data captured


Risk-Based CapitalRisk-Based Capital


All RBC FormulasAll RBC Formulas

No RBC permitted practices allowed.

No changing of formulas, factors, or adjusting of action levels.


Property RBC ChecklistProperty RBC Checklist

• FHLB – Off-balance sheet section

• ACA Fees Sensitivity Test

• Operational Risk – FYI only

• Additional lines added to Asset Concentration

• Receivables for Securities factor reduction

• Format for attestation for catastrophe modeling now included


Property RBCProperty RBC

• Underwriting risk factors updated – done annually

• Adopted underwriting risk premium factors for Line 4 (ex-cat factors), PR018A (still FYI page)

• Instruction change for PR026 – Catastrophe Risk Charge – review carefully

• New FYI PR003A that uses RBC After Covariance including Catastrophic Risk to calculate affiliated risk

• Clarifying instructions Schedule P catastrophe information


Health RBC ChecklistHealth RBC Checklist




• New FYI XR012A – Experience Fluctuation Risk

• Credit Risk – ACA reinsurance info on separate lines

• ACA Risk Adjustment & Risk Corridor Sensitivity Test

• Additional lines added to Asset Concentration

• Receivables for Securities factor change


Life RBC ChecklistLife RBC Checklist




• Interest Rate Risk and Market Risk FYI page for possible use of new generator

• AVR limited for inclusion in Total Adjusted Capital

• Only AVR not used in asset adequacy testing

• Not readily apparent reporting format; noted in instructions and as footnote at bottom of page


Questions?Questions?

• Connie Jasper Woodroof

• NAIC Liaison

• 800.373.3366 ext 85761

• [email protected] (good until January)

• [email protected]

mailto:[email protected]

mailto:[email protected]

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Proprietary 2014 StoneRiver, Inc. Statutory Reporting Update Ohio Chapter IASA November 24, 2014...

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