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Old 09-18-2019, 01:46 PM
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Question Financial Reporting of Supplementary Contracts

In the Supplementary Contract with Life Contengencies (SCwLC) section of Exhibit 5 (E5) there are columns for Ordinary (4) and Group (6). This consistency follows through to the Exhibit of Number of Policies (ENP) where the SC section is split out between Ordinary and Group, both wLC and woLC; however, on Analysis of Increase in Reserves (AoI), there is no column for group SCs. Furthermore, the cross-check for between AoI and E5 only validates the ordinary column (4) rather than the total column; therefore, since the grand totals are also cross-checked, unless the Group SCWLCs somehow appear in a different column in AoI that cross-check would fail.

Initially I suspected that a SC would have to be an individual contract; however, given that there are group columns in both E5 and ENP (none XXX'd out) it appears intentional. If there were SCWLCs governed by a group certificate, how would those be reflected in AoI? Any other thoughts?
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Old 09-19-2019, 04:36 PM
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Where are your Group SCWLC being displayed in the Analysis of Operations by Line of Business? The AoI should match how the Analysis of Ops is done. It should probably fall under the Group Annuity line. For the 2019 annual statements, the Analysis of Operations and Analysis of Increase in reserves need to be broken down to a more detailed product grouping than in the past. The proposed instructions that I have seen says to group SCWLC would be under the group annuity page. However, I have not seen the finalized version of the 2019 annual statement instructions.
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Old 09-20-2019, 10:30 AM
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Quote:
Originally Posted by Sleeping Dragon View Post
For the 2019 annual statements, the Analysis of Operations and Analysis of Increase in reserves need to be broken down to a more detailed product grouping than in the past. The proposed instructions that I have seen says to group SCWLC would be under the group annuity page. However, I have not seen the finalized version of the 2019 annual statement instructions.
Thanks for the heads up; this is the first I have heard of this and I will be monitoring it closely ツ

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Where are your Group SCWLC being displayed in the Analysis of Operations by Line of Business? The AoI should match how the Analysis of Ops is done. It should probably fall under the Group Annuity line.
I definitely agree that they should be categorized in a consistent manner, but I felt like I had to be missing something because I could not see how the E5 Group SC column could be populated without failing a cross-check with AoI. Furthermore, the Group SC columns in ENP would always have to be blank so that it would not appear as though benefits are being paid for contracts where reserves are not being held in E5; I do not believe this is a cross-check, but just an internal consistency measure.
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Old 09-22-2019, 09:34 AM
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NAIC BWG Adoption page

The 2018-22BWG and 2018-26BWG documents in the link has the details on the line of business reporting for the Analysis of Operations and Analysis of Increase in Reserves.
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Old 09-23-2019, 01:38 PM
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NAIC BWG Adoption page

The 2018-22BWG and 2018-26BWG documents in the link has the details on the line of business reporting for the Analysis of Operations and Analysis of Increase in Reserves.
Thanks for the link, I really appreciate it and will be reviewing this often going forward. The revised instructions specifically state that the SC's should flow into annuities in AoO and that the AoI annuity numbers should flow directly from Exhibit 5 from their respective ordinary/group columns (rather than using only the Ordinary SC that was indicated in Booke's cross-checks).
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