Statute § 20-223(A) “ap&p’s approved by the NAIC”
Pursuant to statute, insurers doing business in the state will be required to conform to the ap&p’s in the new manual for financial filings with an “as of” date on and after 1/1/2001. The Insurance Department believes that the existing statute would effectuate the adoption of Codification through incorporation into the NAIC AP&P Manual.
Makes numerous changes to various statutory accounting requirements to conform to Codification. Amendments include areas such as admitted/nonadmitted assets, reserves, valuation, investments, mortgages, loans, surplus, and reinsurance.
Person contacted: Vista Brown, Gary Torticill, Nancy Howse
Statute § 23-63-216
“NAIC AP&P Manual”
The annual statement shall...follow those accounting practices and procedures prescribed by the “most recent and appropriate, companion” NAIC AP&P Manual.
The Department is working on a bulletin or memorandum concerning the adoption of the new manual. A task force including domestic industry was formed in 1999 to review any potential conflict between existing accounting requirements and Codification; deliberations continue.
Person contacted: Mel Anderson
Statute § 923 “NAIC AP&P Manual to the extent the p&p’s do not conflict with Code. Commissioner may make changes”
The Insurance Department plans to send out a notice imminently to all companies which indicates that, due to the existing statute, Codification will become effective on 1/1/2001. The notice will also be posted on the CA website. With respect to the Department’s comparison of current accounting requirements to Codification, the Department repealed inconsistent and outdated statutes several years ago. The Department has not made a final decision with respect to repealing its statutory language regarding the excess of Schedule P formula reserve for worker’s compensation. The Department may also repeal some outdated regulations that have been superceded.
Person contacted: Norris Clark