NAIC BLANKS (E) WORKING GROUP

Blanks Agenda Item Submission Form

DATE: 01/26/2012
CONTACT PERSON:
TELEPHONE:
EMAIL ADDRESS:
ON BEHALF OF:
NAME: Kim Hudson
TITLE:
AFFILIATION: California Department of Insurance
ADDRESS: 300 South Spring St.
Los Angeles, CA 90013 / FOR NAIC USE ONLY
Agenda Item # 2012-17BWG MOD
Year 2012
Changes to Existing Reporting [ X ]
New Reporting Requirement [ ]
REVIEWED FOR ACCOUNTING PRACTICES AND PROCEDURES IMPACT
No Impact [ X ]
Modifies Required Disclosure [ ]
DISPOSITION
[ ] Rejected For Public Comment
[ ] Referred To Another NAIC Group
[ X ] Received For Public Comment
[ ] Adopted Date
[ ] Rejected Date
[ ] Deferred Date
[ ] Other (Specify)

BLANK(S) TO WHICH PROPOSAL APPLIES

[ X ] ANNUAL STATEMENT [ X ] QUARTERLY STATEMENT

[ X ] INSTRUCTIONS [ ] CROSSCHECKS [ X ] BLANK

[ X ] Life and Accident & Health [ X ] Property/Casualty [ X ] Health

[ ] Separate Accounts [ X ] Fraternal [ X ] Title

[ ] Other Specify

Anticipated Effective Date: Annual 2012

IDENTIFICATION OF ITEM(S) TO CHANGE

See details on next page

REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE**

See details on next page

NAIC STAFF COMMENTS

Comment on Effective Reporting Date: Annual 2012 should not be a problem

Other Comments:

** This section must be completed on all forms. Revised 6/13/2009


IDENTIFICATION OF ITEM(S) TO CHANGE

Modify the instructions for code to use in the Domiciliary Jurisdiction columns to indicate that the two-character U.S. postal code will be used as the abbreviation for U.S. states, territories and possessions and the Alpha 3 (three-character code) from Nations Online will be used as the abbreviation for foreign countries.

Modify the instructions for Schedule T to indicate that the Alpha 3 (three-character code) from Nations Online will be used as the abbreviation for foreign countries in the Aggregate Write-ins for Other Alien in addition to including the name of the country. This column will be two separate electronic columns (a column for the country code and a column for the country name) in the database but displayed in the blank as if it were one column similar to how the CUSIP numbers are handled in the investment schedules.

The Blank for Schedule T and Schedule T, Part 2 will be modified to change the code shown for Canada from “CN” to “CAN”. Make the same change to Supplement A to Schedule T for both the annual and quarterly blank for Property.

Add a new column to Schedule T Part 1 – Premium and Annuity Consideration to indicate if the insurer has any direct premium written in an alien jurisdiction via Branch operations. The column is electronic only and results will be made available to regulators via NAIC solvency tools.

Replace the Nations Online Alpha2 country code list in the Appendix with the Nations Online Alpah3 list.

REASON, JUSTIFICATION FOR AND/OR BENEFIT OF CHANGE

The two-character country code from Nations Online currently being used duplicates some of the U.S. postal codes used for U.S. states, territories and possessions. In addition the list being used modified the Nations Online list by switching the codes for Canada and China because Schedule T uses “CN for Canada and Nations Online uses “CN” for China. While this is a minor change to the Nations Online list, it has generated questions from companies in the past questioning what codes to use for Canada and China.

The reinsurance schedules use the country code to identify the country in the Domiciliary Jurisdiction columns. The duplication between the U.S. postal codes and the country code list has not been perceived to be a problem because those schedules have specific lines to separate U.S. and non-U.S. companies.

The new Schedule Y, Part 1A also has a column for Domiciliary Jurisdiction and uses the country code list for non-U.S. companies. Unlike the reinsurance schedules, Schedule Y, Part 1A does not have a way to distinguish when one of the duplicate codes are used whether it is for a U.S. or a non-U.S. company.

To resolve the conflicts that arise from the duplications between the U.S. postal codes and the Nations Online Alpha 2 list, this proposal changes the Nations Online list used from the Alpha 2 to the Alpha 3. The instructions for the Domiciliary Jurisdiction columns and the code list in the Appendix of the instructions are being modified to reflect this change. For consistency the two-character U.S. postal code will be used as the abbreviation for U.S. states, territories and possessions and the Alpha 3 (three-character code) from Nations Online will be used as the abbreviation for foreign countries.

The purpose of the addition of the “Branch Operations is to better help state insurance regulators identify branch operations in alien jurisdictions. Such activities could result in supervisory coordination activities with other jurisdiction as a result of International Association of Insurance Supervisor standards.


ANNUAL STATEMENT INSTRUCTIONS – LIFE

SCHEDULE S – REINSURANCE

Detail Eliminated To Conserve Space

Domiciliary Jurisdiction

In those parts of Schedule S requiring disclosure of the “Domiciliary Jurisdiction,” for each domestic reinsurer or U.S. branch listed, the column should be completed with the state where the reinsurer maintains its statutory home office. For pools and associations, enter the state where the administrative office of such pool or association is located. For alien reinsurers, this column should be completed with the country where the alien is domiciled. Enter the two-character digit U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions.

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SCHEDULE S - PART 1 – SECTION 1

REINSURANCE ASSUMED LIFE INSURANCE, ANNUITIES, DEPOSIT FUNDS AND OTHER LIABILITIES WITHOUT LIFE OR DISABILITY CONTINGENCIES, AND RELATED BENEFITS LISTED BY REINSURED COMPANY AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

Detail Eliminated To Conserve Space


SCHEDULE S - PART 1 – SECTION 2

REINSURANCE ASSUMED ACCIDENT AND HEALTH INSURANCE LISTED BY REINSURED COMPANY

AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

Detail Eliminated To Conserve Space

SCHEDULE S - PART 2

REINSURANCE RECOVERABLE ON PAID AND UNPAID LOSSES LISTED BY REINSURING COMPANY

AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

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SCHEDULE S - PART 3 - SECTION 1

REINSURANCE CEDED LIFE INSURANCE, ANNUITIES, DEPOSIT FUNDS AND OTHER LIABILITIES WITHOUT LIFE OR DISABILITY CONTINGENCIES, AND RELATED BENEFITS LISTED BY REINSURING COMPANY AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

Detail Eliminated To Conserve Space

SCHEDULE S - PART 3 - SECTION 2

REINSURANCE CEDED ACCIDENT AND HEALTH INSURANCE LISTED BY REINSURING COMPANY

AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

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WORKERS’ COMPENSATION CARVE-OUT SUPPLEMENT

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SCHEDULE F

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Domiciliary Jurisdiction

In those parts of Schedule F requiring disclosure of the “Domiciliary Jurisdiction” for each domestic reinsurer or U.S. branch listed, the column should be completed with the state where the reinsurer maintains its statutory home office. For pools and associations enter the state where the administrative office of such pool or association is located. For alien reinsurers, this column should be completed with the country where the alien is domiciled. Enter the two-character digit U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions.

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SCHEDULE F – PART 2

CEDED REINSURANCE

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Column 4 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character abbreviations for foreign countries is available in the appendix of these instructions. For abbreviations of foreign countries not found in the appendix, use the three-character abbreviations found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

Report the two-character state abbreviation. For pool and associations enter the state where the administrative office of such pool or association is located.

Detail Eliminated To Conserve Space


ANNUAL STATEMENT INSTRUCTIONS – HEALTH

SCHEDULE S – REINSURANCE

Detail Eliminated To Conserve Space

Domiciliary Jurisdiction

In those parts of Schedule S requiring disclosure of the “Domiciliary Jurisdiction,” for each domestic reinsurer or U.S. branch listed, the column should be completed with the state where the reinsurer maintains its statutory home office. For pools and associations, enter the state where the administrative office of such pool or association is located. For alien reinsurers, this column should be completed with the country where the alien is domiciled. Enter the two-character digit U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions.

Detail Eliminated To Conserve Space

SCHEDULE S – PART 1 – SECTION 2

REINSURANCE ASSUMED FOR ACCIDENT AND HEALTH LISTED BY REINSURED COMPANY

AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

Detail Eliminated To Conserve Space


SCHEDULE S – PART 2

REINSURANCE RECOVERABLE ON PAID AND UNPAID LOSSES LISTED BY REINSURING COMPANY

AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

Detail Eliminated To Conserve Space

SCHEDULE S – PART 3 – SECTION 2

REINSURANCE CEDED ACCIDENT AND HEALTH INSURANCE LISTED BY REINSURING COMPANY

AS OF DECEMBER 31, CURRENT YEAR

Detail Eliminated To Conserve Space

Column 5 – Domiciliary Jurisdiction

Report the two-character U.S. postal code abbreviation for the domiciliary jurisdiction for U.S. states, territories and possessions. A comprehensive listing of three-character postal code abbreviations for foreign countries is available in the appendix of these instructions. For postal code abbreviations of foreign countries not found in the appendix, use the three-character abbreviations code found at:

www.nationsonline.org/oneworld/countrycodes.htm

If a reinsurer has merged with another entity, report the domiciliary jurisdiction of the surviving entity.

Detail Eliminated To Conserve Space