Insolvency Cost Information Files

The following items lend guidance to the establishment of accruals for potential guaranty association assessments. Contact the NAIC or AICPA for copies.

  • Statement of Statutory Accounting Principle No. 35 R - Revised Guaranty Fund and Other Assessments (finalized March 13, 2000, revised October 18, 2010). This supercedes SSAP No. 35.
  • Statement of Statutory Accounting Principle No. 35 - Accounting for Guaranty Fund and Other Assessments (finalized March 2000 by the NAIC)
  • Issue Paper No. 35 - Accounting for Guaranty Fund and Other Assessments (finalized December 1999 by the NAIC)
  • SOP 97-3 - Accounting by Insurance and Other Enterprises for Guaranty Fund and Certain Other Insurance-Related Assessments (released December 1996 by the AICPA)

File Explanations:

Costs - This Microsoft Excel workbook (created with Office 2010) contains individual spreadsheets for all insolvency cases along with various summary schedules and assessable premium data.

Report - This PDF file contains all commentary and notes for the insolvency cost report. It includes general descriptions of categories, brief comments on individual insolvency cases, assessment and premium tax offset provisions, and premiums by state. Also included are the spreadsheets from the Costs Excel workbook, thus creating one comprehensive report. You will need Acrobat Reader to open and read this file.

Comments - This file is no longer provided beginning with 2003 since all information is included in the Report PDF file. This Microsoft Word document (created with Office 2010) contains all commentary and notes for the insolvency cost report. It includes general descriptions of categories, brief comments on individual insolvency cases and premium tax offset provisions.

Note: It is recommended that you use Microsoft Office 2007 or higher to view these documents.

2014

Costs [1,294 KB] Report [1,052 KB] Last updated 11/17/2014
Lincoln Memorial [22 KB] Memo re Penn Treaty and ANIC Liabilities [28 KB]

Note: Penn Treaty/American Network costs by state are included in the "Costs.xls" file. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Penn Treaty and ANIC Liabilities).

While the companies are still in rehabilitation and the liquidation petitions have been denied, we have prepared cost estimates so that guaranty associations and member insurers have an idea of the potential exposure in the event that either company is liquidated in the future.

Please see the attached Excel file labeled “Lincoln Memorial”. This company wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of Sept 2014 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.

2013

Costs [996 KB] Report [1,160 KB] Last updated 12/02/13
Lincoln Memorial [18 KB] Memo re Penn Treaty and ANIC Liabilities [29 KB]

Note: Penn Treaty/American Network costs by state are included in the "Costs.xls" file. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Penn Treaty and ANIC Liabilities).

While the companies are still in rehabilitation and the liquidation petitions have been denied, we have prepared cost estimates so that guaranty associations and member insurers have an idea of the potential exposure in the event that either company is liquidated in the future.

Please see the attached Excel file labeled “Lincoln Memorial”. This company wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of Sept 2013 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.

ELNY Update - June 2013

ELNY - Closing Funding Memo - Exhibit A PDF - Adobe Acrobat

This ELNY GA Funding Liability Estimate is an estimate of GA coverage liability and GA funding that will be required in connection with the ELNY Agreement of Restructuring. Affected GAs will use this estimate for purposes of assessments and closing funding. However, final GA coverage liability and GA funding will be determined as of closing pursuant to the terms of the Agreement of Restructuring. If necessary, there will be a true-up with the GAs based on the final GA coverage liability and GA funding. The assumptions used in preparing this estimate are set forth in the footnotes. Also please note the attached estimate does NOT include additional expenses incurred by NOLHGA or the guaranty associations, as a result actual assessments may differ from the attached.

2012

Costs [1,263 KB] Report [1,060 KB] Last updated 12/05/12
Lincoln Memorial [25 KB] Memo re Penn Treaty and ANIC Liabilities [143 KB]

Note: ELNY and Penn Treaty/American Network costs by state are now included in the "Costs.xls" file. We have included a special memorandum containing additional explanatory language regarding Penn Treaty/American Network (see Memo re Penn Treaty and ANIC Liabilities).

Please see the attached Excel file labeled “Lincoln Memorial”. This company wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of Sept 2012 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.

The Memorial Service business was sold during 2011. The costs for this company are included in the "Costs.xls" file and, unlike prior years, no cost range will be provided.

2011

Costs [2,000 KB] Report [999 KB] Last updated 12/15/11
Lincoln Memorial [51 KB]

Note: ELNY and Penn Treaty/American Network costs by state are now included in the "Costs.xls" file.

Please see the attached Excel file labeled “Lincoln Memorial”. This company wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of June 2011 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.

The Memorial Service business was sold during 2011. The costs for this company are included in the "Costs.xls" file and, unlike prior years, no cost range will be provided.

2010

Costs [1,759 KB] Report [608 KB] Last updated 12/09/10
ELNY [40 KB] Lincoln Memorial/Memorial Service [70 KB]

Please see the attached memo labeled “ELNY” which contains general information regarding the costs for this case. Note that the cost estimates discussed in this memo are NOT included in the attached data files or report.

Please see the attached Excel file labeled “Lincoln Memorial/Memorial Service”. These two companies wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of June 2010 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.

2009

Costs [1,714 KB] Report [795 KB] Last updated 12/10/09
ELNY [37 KB] Lincoln Memorial/Memorial Service [62 KB]

Please see the attached memo labeled “ELNY” which contains general information regarding the costs for this case. Note that the cost estimates discussed in this memo are NOT included in the attached data files or report.

Please see the attached Excel file labeled “Lincoln Memorial/Memorial Service”. These two companies wrote preneed funeral insurance. The current plan calls for the guaranty associations to run-off the business and fund death benefits as claims are incurred. The attached file reflects the face amounts for the business – this would be the MAXIMUM exposure for costs to the guaranty associations (excluding any ongoing expenses). The file also reflects an estimate of reserves as of September 2009 along with claims paid, expenses, and premiums received. This would represent the LOW END of the cost range. Companies may wish to consider use of the low end estimate for GAAP purposes or the mid-point of the range for statutory financials when calculating their accruals for guaranty association assessment purposes.

2008

Costs [2307k] Report [1009k] [download] [1159k] Last updated 1/22/09
ELNY [37k] Lincoln Memorial/Memorial Service

2007

Costs [1436k] Report [702k] [download] [914k] Last updated 11/19/07

2006
Costs [1449k] Report [622k] [download] [833k] Last updated 11/30/06
2005

Costs [1413k] Report [588k] [download] [809k]

2004

Costs [1003k] Report [522k] [download] [690k]

2003

Costs [1003k] Report [522k] [download] [690k]

2002

Comments [89k] Costs [892k] Report [471k] [download] [627k]

2001

Comments [85k] Costs [908k] Report [743k] [download] [910k]

2000

Comments [108k] Costs [1,008k] Report [743k] [download] [252k]

1999

Comments [108k] Costs [860k] Report [743k] [download]