Pennsylvania Code & Bulletin

• No statutes or acts will be found at this website.

The Pennsylvania Bulletin website includes the following: Rulemakings by State agencies; Proposed Rulemakings by State agencies; State agency notices; the Governor’s Proclamations and Executive Orders; Actions by the General Assembly; and Statewide and local court rules.

PA Bulletin, Doc. No. 14-1065



General Guidance for Disclosure of Prescribed Differences from NAIC Statutory Accounting Principles; No. 2014-05

[44 Pa.B. 2969]
[Saturday, May 17, 2014]

 This document supersedes the notice published at 39 Pa.B. 6849 (November 28, 2009) and shall remain in effect until a subsequent notice is published in the Pennsylvania Bulletin.

 By Insurance Department Notice Nos. 1998-04 and 2000-02, all types of domestic insurers were advised of the requirement to adhere to the NAIC's codified Accounting Practices and Procedures Manual (Manual) in preparing financial statements to be filed with the Insurance Department (Department). The Manual establishes a comprehensive basis of accounting to be adhered to when not in conflict with the statutes or regulations of an insurer's domiciliary state or when the domiciliary state's statutes and regulations are silent. It does not preempt the legislative or regulatory authority of the states.

 The Department has identified the following Pennsylvania laws and regulations relating to statutory financial statement presentation that may require disclosure1 in the notes to financial statements and certified public accountant (CPA) audit reports filed by domestic insurers:

Pennsylvania Laws and Regulations NAIC Statements of Statutory Accounting Principles (SSAP) and Appendices
31 Pa. Code § 161.6
(relating to revocation of
reinsurer qualification or certification)
A-785 Credit for Reinsurance (9.e.)
Section 1008 of The
Insurance Company Law
of 1921 (40 P. S. § 968),
regarding reserves of
reciprocal and inter-
insurance exchanges
SSAP No. 53 Property Casualty Contracts—
31 Pa. Code Chapter 84a
(relating to minimum
reserve standards for
individual and group
health and accident insurance contracts)
SSAP No. 54 Individual and Group Accident and Health Contracts and A-010 Minimum Reserve Standards for Individual and Group Health Insurance Contracts
Sections 714—716 of
The Insurance Company
Law of 1921 (40 P. S.
§§ 910-14—910-16),
regarding unearned
premium reserves of title
insurance companies
SSAP No. 57 Title Insurance and A-628 Title Insurance
31 Pa. Code Chapter 116
(relating to discounting of
worker's compensation
loss reserves)
SSAP No. 55 Unpaid Claims, Losses and Loss Adjustment Expenses and No. 65 Property and Casualty Contracts
Section 661 of The
Insurance Company Law
of 1921 (40 P. S. § 832),
regarding premium
reserves of surety
SSAP No. 53 Property Casualty Contracts—
Section 2434(d) of The
Insurance Company Law
(40 P. S. § 991.2434(d)),
regarding payment of
deficiencies for fraternal
benefit societies
SSAP No. 4—Definitions of Assets and Non-admitted Assets

 This notice provides general guidance to assist in a domestic insurer's review of Pennsylvania laws and regulations to identify required disclosures in financial statements and CPA audit reports. The laws and regulations referenced in this notice are not intended to be an all-inclusive list.

 Questions concerning this notice may be directed to Stephen J. Johnson, CPA, Deputy Insurance Commissioner, Insurance Department, Office of Corporate and Financial Regulation, 1345 Strawberry Square, Harrisburg, PA 17120, (717) 783-2142, fax (717) 787-8557,

Insurance Commissioner

[Pa.B. Doc. No. 14-1065. Filed for public inspection May 16, 2014, 9:00 a.m.]


1  See SSAP No. 1, Disclosure of Accounting Policies, Risks & Uncertainties, and Other Disclosures and A-205, Illustrative Disclosure of Differences Between NAIC Statutory Accounting Practices and Procedures and Accounting Practices Prescribed or Permitted by the State of Domicile.

No part of the information on this site may be reproduced for profit or sold for profit.

This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.