| 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 - Accounting for Guaranty Fund and Other Assessments (finalized March 2000 by the NAIC) |
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| Issue Paper No. 35 - Accounting for Guaranty Fund and Other Assessments (finalized December 1999 by the NAIC) |
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| SOP 97-3 - Accounting by Insurance and Other Enterprises for Guaranty Fund and Certain Other Insurance-Related Assessments (released December 1996 by the AICPA) |
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| File Explanations: |
| Costs - This Microsoft Excel workbook (created with Office 2003) contains individual spreadsheets for all insolvency cases along with various summary schedules and assessable premium data. |
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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.
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Comments - This Microsoft Word document
(created with Office 2003) 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. This file is no longer provided beginning with
2003 since all information is included in the Report PDF file.
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| Note: It is recommended that you use Microsoft Office 97 or higher to view these documents. |
The "Report" is a PDF file, requiring Adobe Acrobat
Reader 6.0 (if you don't have it, click on the image below to transfer
to the Adobe site and select an install file).
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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.
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