The NAIC and interested parties convened in Philadelphia in early August for the NAIC’s Summer Meeting. The Summer Meeting coincided with the 230th anniversary of the Constitutional Convention, which was held in Philadelphia’s Independence Hall throughout the summer of 1787. Six blocks from the site where George Washington, Benjamin Franklin, and their fellow delegates once debated separation of powers, insurance regulators debated cybersecurity.
The Cybersecurity Working Group adopted the much-awaited Insurance Data Security Model Law. States need to adopt the model law individually to hold insurers accountable; however, insurers that are compliant with the New York Department of Financial Services cyber rules () are compliant with the NAIC’s model law.
The Statutory Accounting Principles Working Group (SAPWG), busy with a high volume of exposures out for comment, adopted only two revisions to Statements of Statutory Accounting Principles (SSAPs) at the meeting:
AVR and IMR in SSAP No. 26
The revision aligns SSAP No. 26-R with the annual statement instructions, which state insurers who report asset valuation reserve (AVR) and interest maintenance reserve (IMR) (primarily life insurers) are to record recognized losses from other-than-temporary impairments in their entirety either to the AVR or IMR.
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ASU 2016-18 - Restricted Cash
The revisions clarify the following:
Earlier in the summer, the SAPWG adopted revisions to SSAP No.65 which expand the disclosure requirements for high-deductible policies. For a detailed review of the revisions, click here.