STATE OF NEW YORK
25 BEAVER STREET
NEW YORK, NEW YORK 10004
|George E. Pataki
Re: Accounting Practices and Procedures Manual Regulation 172
Has the New York State Insurance Department adopted SSAP No. 18 (2004), now SSAP No. 91 (2005) of the Accounting Practices and Procedures Manual (Accounting Manual) as published by the National Association of Insurance Commissioners (NAIC)?
Yes, N.Y. Comp. Codes R. & Regs tit. 11, Part 83, (2003) (Regulation 172) is updated every year to adopt the recent Statements of Statutory Accounting Principles of the Accounting Manual subject to the exceptions, conflicts and additions set forth in § 83.4. Specifically, SSAP No. 18 has been adopted without modification, however, Regulation 172 has not yet been updated to address the changes present in the March 2005 Accounting Manual.
This is a general inquiry; no specific facts were provided.
N.Y. Comp. Codes R. & Regs. tit. 11, Part 83 (2003) (Regulation 172) specifies the accounting practices and procedures required in completing annual and quarterly financial statements. N.Y. Comp. Codes R. & Regs. tit. 11, § 83.3(c) (2003) specifically provides that "(n)otwithstanding any other provision of this Title, the Accounting Manual is adopted in its entirety, except as provided in § 83.4 of this Part, and, subject to such conflicts and exceptions, insurers shall follow the accounting practices and procedures prescribed by the Accounting Manual."
N.Y. Comp. Codes R. & Regs. tit. 11, § 83.2 (2003) provides that Regulation 172 will be updated annually to adopt the most recent Accounting Manual subject to the exceptions set forth in § 83.4. With regard to SSAP No. 18, § 83.4 does not make any exception or change; SSAP No. 18 has been adopted as is. However, please note that SSAP No. 18 has been superseded in the March 2005 Accounting Manual by SSAP No. 91. Regulation 172 currently adopts the March 2004 Accounting Manual, but has not yet been updated to address the March 2005 Accounting Manual.
For further information please contact Principal Attorney Donald Carroll at the New York City office.