Insolvency Cost Information Report Now Available on Web Site

NOLHGA has issued this year’s Insolvency Cost Information Report. The report is meant to assist member companies in establishing accruals for life, annuity, and health guaranty association assessments pursuant to Statement of Statutory Accounting Principle No. 35 — Accounting for Guaranty Fund and Other Assessments (finalized March 2000 by the NAIC) and SOP 97-3 — Accounting by Insurance and Other Enterprises for Guaranty Fund and Certain Other Insurance-Related Assessments (released December 1997 by the AICPA). It contains information regarding the cost of insolvencies, assessable premium by state, and summaries of each state’s general assessment and premium tax offset provisions.

The 2002 Insolvency Cost Information Report can be accessed using this link. Please note that the report will not be issued in hard-copy format. Instead, it is available for download from NOLHGA’s Web site at the link above. It can also be accessed through the home page of the NOLHGA Web site by using the link in the “Insolvency Corner” section. Users do not have to log in to access the report.

The report contains the following data files:

Comments: A Word document containing summary information on insolvencies.
Costs: An Excel workbook containing individual insolvency cost information along with various summary schedules.
Report: A PDF file that combines the two reports above with general state provisions regarding assessment and premium tax offsets.
Download: A WinZip file containing all three files.

In addition, copies of SSAP No. 35 and SOP 97-3 are also available. Finally, NOLHGA has notified approximately 900 insurance companies that the Insolvency Cost Information Report has been posted on the site.

If you have any questions about the report, please contact Paul Peterson at [email protected] or 703.787.4119.