3901-3-18 NAIC manuals.

(A) Purpose

The purpose of this rule is to adopt the forms, instructions and manuals prescribed by the "National Association of Insurance Commissioners" for the preparation and filing of statutory financial statements and other financial information.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent of insurance under sections 3901.041 , 3901.07 , 3901.77 , 1739.09 and 1751.47 of the Revised Code.

(C) Definition

For purposes of this rule, "Insurer" means property and casualty insurance companies, life insurance companies, fraternal benefit associations, title insurance companies, health insuring corporations and multiple employer welfare associations.

(D) Scope

This rule applies to all domestic insurers and the Ohio department of insurance.

(E) Financial examinations and analysis

The Ohio department of insurance shall employ the most current version of "Valuation of Securities Manual", the "Purpose and Procedures Manual of the Securities Valuation Office", the "Accounting Practices and Procedures Manual," The "Examiners Handbook," the "annual statement blanks" and the "annual statement instructions" published by the "National Association of Insurance Commissioners" in discharging its duty to examine and analyze the financial condition of insurers authorized to conduct business in the state of Ohio.

(F) Preparation of financial statements

All domestic insurers shall employ the most current version of the "Valuation of Securities Manual", the "Purpose and Procedures Manual of the Securities Valuation Office", the "Accounting Practices and Procedures Manual" and the "annual statement instructions" published by the "National Association of Insurance Commissioners" for the purpose of preparing and filing quarterly and annual statements with the Ohio department of insurance and other financial information.

(G) Credit for reinsurance

The "Accounting Practices and Procedures Manual" provides instructions on how an insurer may take credit for reinsurance and account for reinsurance transactions. Domestic insurers are limited by the provisions of sections 3901.61 to 3901.65 of the Revised Code which establish the requirements for an insurer to take credit for any reinsurance ceded as either an asset or a reduction of liability. The "Accounting Practices and Procedures Manual" sets out a method for taking credit for reinsurance ceded not permitted by the Revised Code, and therefore those provisions of it may not be employed by domestic insurers in the preparation of their financial statements.

(H) Severability

If any paragraph, term or provision of this rule is adjudged invalid for any reason, such judgment shall not affect, impair or invalidate any other paragraph, term or provisions of this rule, and remaining paragraphs, terms and provisions shall be and shall continue in full force and effect.

Eff 12-31-00; 3-21-05
Promulgated Under: 119.03
Statutory Authority: 3901.041 , 3901.07 , 3901.77 , 1739.09 , 1751.47
Rule Amplifies: 3901.77 , 1739.09 , 1751.47
R.C. 119.032 review dates: 08/31/2009 and 08/30/2014