Updated Accounting Guidelines Manual Distributed
NOLHGA distributed an updated version of the Accounting Guidelines Manual to all guaranty association administrators via e-mail on February 28, 2007. While the Accounting Guidelines Manual contains useful reference material regarding various topics (financial statement presentations, assessment notices, Form 990, etc.), the Accounting Issues Committee would like to stress two new sections added this year: Proof of Claim Reporting Format and Internal Controls.
The Proof of Claim Reporting Format replaces the Uniform Data Standards section and is the format used by NOLHGA's Web site for guaranty associations to file updated proof of claim information. It contains definitions for each field used along with a revised format the committee believes will be easier for administrators to use. In particular, emphasis has been placed on reporting NOLHGA-related expenses, dues, and assessment data survey costs separately from other expense information and on the reorganized policy-level claim sections. This format is currently in place on NOLHGA's Web site and should be used for any future filings.
In light of Sarbanes-Oxley, more and more organizations are reviewing internal controls and their potential impact on management and reporting functions. A high-level discussion of internal control considerations has been added to the Manual for use by guaranty associations. This may prove of particular help to those associations with one- or two-person organizations.
Finally, the Manual has been bookmarked so that a particular subject area may be found quickly by simply clicking on the appropriate link.
During 2007, the Accounting Issues Committee plans on additional format changes to the Manual to make it more user-friendly. The current version contains some of the initial efforts, but more changes will be coming. Comments or suggestions on making the Manual a more useful tool for administrators are encouraged by the committee and should be sent to Paul Peterson at [email protected].
Authorized users can download the Accounting Guidelines Manual from NOLHGA's Web site after logging in. It is posted under the Member Content menu in Publications in the Special Reports & Documents section.
Committee Chair - Lowell Miller; Staff Contact - Paul PetersonUtah Enacts New Receivership Laws
During the week of February 25, 2007, Utah's General Assembly adopted comprehensive changes to its receivership laws. The new receivership statute is based in large part on the NAIC's Insurer Receivership Model Act (IRMA). It was sponsored by Rep. James Dunnigan in the House and by Sen. Curtis Bramble in the Senate. A draft of the receivership bill was first released by the insurance department in May 2006. Since that time, department representatives and the House sponsor have worked with insurance industry, trade, and guaranty association representatives and others to incorporate amendments addressing many of the issues and concerns raised with respect to various provisions in the bill.
The receivership bill, designated House Bill 340, was formally introduced in the legislature on January 25. It was passed by the House with additional amendments and referred over to the Senate on February 12. During the Senate hearing, Sen. Bramble noted that the receivership bill was lengthy and complex and will require additional work and "fine tuning" during future sessions. Nevertheless, he urged enactment. The bill passed on February 27, following a 28 to 0 vote in the Senate. The legislative session ended on February 28. The text of the new receivership statute can be found on the Utah State Legislature Web site.
Staff Contact - Joni ForsythePeters Named to Head New York Liquidation Bureau
New York Acting Superintendent of Insurance Eric Dinallo (awaiting state Senate confirmation) has named Mark Peters as special deputy superintendent in charge of the New York Liquidation Bureau (NYLB), which acts on behalf of the superintendent of insurance as the court-appointed fiduciary and receiver of impaired or insolvent insurance companies. Peters served as the chief of the Public Integrity Unit under then-Attorney General (now governor) Eliot Spitzer's command. At the attorney general's office, Peters was in charge of all New York government corruption prosecutions. Most recently, Peters handled complex litigation matters as a partner at the New York law firm Scarola Ellis. Peters earned his J.D. from the University of Michigan Law School and his B.A. from Brown University.
Staff Contact -