2007 Insolvency Cost Information Report Now Available

NOLHGA has issued its annual Insolvency Cost Information Report, which assists 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). The report contains information regarding the cost of insolvencies, assessable premium by state, and summaries of each state's general assessment and premium tax offset provisions.

These reports have been issued by NOLHGA annually since 1992. This year's report is available for download from NOLHGA's Web site in the "Facts & Figures--Insolvency Cost Files" section.

The report contains the following data files:

Costs: An Excel workbook with individual insolvency cost information along with various summary schedules and premium information by state.

Report: A PDF file that includes commentary on various insolvencies along with the schedules from the Costs file. Also included are general assessment and premium tax offset state provisions along with premiums by state.

Download: A WinZip file containing both files.

Please note that some of the financial schedules will print in very small text (particularly the summary schedules on pages 5 to 7 of the PDF file) and may be difficult to read. If the text is too small, it might help to set those pages to legal size and print them separately from the rest of the report.

Also, summary assessment called and refunded information has been included on each insolvency case for use by member companies in their accrual process as they deem necessary. This information is compiled from the annual assessment submissions of each guaranty association. It is not audited by NOLHGA; therefore, NOLHGA will not be able to address any questions that member companies may have on the accuracy or completeness of the information. Those inquiries need to be directed to the appropriate guaranty association.