New York Superintendent of Insurance Neil D. Levin announced the adoption of a new regulation implementing a codification of statutory accounting principles for insurers. The purpose of the codification is to enhance the consistency of the accounting treatment of assets, liabilities, reserves, income and expenses of insurers, by setting forth the accounting practices and procedures to be followed in completing annual and quarterly financial statements required by law.
“The statutory accounting principles of the past did not always provide a consistent and complete basis for accounting and reporting, and were not always prepared on a comparable basis. Insurers were often uncertain about what rules to follow, and regulators were sometimes unfamiliar with the accounting rules followed by insurers in other states,” Levin said. “The codification of statutory accounting principles will allow for enhanced consistency and comparability, as well as produce a comprehensive guide for regulators, insurers and auditors–clearly setting forth the procedures that are to be followed.”
Codification will allow insurers to present information in a manner more useful to the department, and insurers and auditors will now have a comprehensive guide to assist in preparing statutory statements. The National Association of Insurance Commissioners’ Accounting Practices and Procedures Manual, effective January 1, 2001, includes a body of accounting guidelines referred to as Statements of Statutory Accounting Principles.
Regulation 172 incorporates the Accounting Manual into the regulation, with certain modifications to reflect special provisions required by New York law or policy. Regulation 172 takes effect January 1, 2001 allowing for the use of the accounting principles in preparation of Quarterly Statements as of March 31, 2001 which are due on May 15, 2001.
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