Insurance: NAIC 2020 fall meeting

KPMG reports on actions and discussions about ongoing projects on conference calls and at the 2020 fall meeting.

KPMG reports on actions taken and discussions about ongoing projects held on conference calls and at the NAIC Virtual 2020 Fall meeting.

The NAIC adopted the following guidance:

SSAP No. 2R to require the identification and disclosure of cash equivalents or substantially similar investments that continue to be reported as cash equivalents for more than one consecutive reporting period.
SSAP Nos. 19 and 73 to update the amortization guidance for leasehold improvements.
INT 2020-10 to clarify the accounting and reporting of conforming and nonconforming credit tenant loans.
Revision to the life principle-based reserve exemption to exempt insurers that only have new policies due to conversions.
Revisions to the Insurance Holding Company System Regulation Act and the Company System Model Regulation with Reporting Forms and Instructions to include requirements for the Group Capital Calculation (GCC).
GCC template and instructions.

The NAIC exposed revisions to the following guidance:

SSAP No. 25 to clarify the types of entities and individuals that would be considered related parties. The revisions also include a proposed new Schedule Y disclosure recommended by the Group Solvency Issues Working Group
SSAP No. 71 to clarify that the proposed guidance for levelized commissions would apply to contracts in effect at the date of adoption and to provide a distinction between traditional persistency contracts and funding agreements.
Proposal to establish a principle about the type of assets in the scope of SSAP Nos. 26R and 43R that should be included in Schedule D-1: Long-Term Bonds.
Criteria to assess VM-20 yearly renewable term reinsurance solutions.

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