New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter IV - Financial Condition Of Insurer and Reports to Superintendent › Subchapter A - Rules of General Application › Part 83 - Financial Statement Filings and Accounting Practices and Procedures › Section 83.2 - Background

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Certain
				  provisions of the Insurance Law and this Title provide that authorized
				  insurers, accredited reinsurers, and authorized fraternal benefit societies
				  shall file financial statements annually and quarterly with the superintendent.
				  Authorized insurers and authorized fraternal benefit societies pursuant to
				  Insurance Law sections 307 and 308, and accredited reinsurers pursuant to
				  Insurance Law section 107 and section
				  125.4 
				  of Part 125 of this Title, are required to file what are known as annual and
				  quarterly statement blanks on forms prescribed by the superintendent (financial
				  statements). Except in regard to filings made by underwriters at Lloyd's,
				  London, the superintendent has prescribed for use the forms and annual and
				  quarterly statement instructions (instructions) that are adopted from time to
				  time by the National Association of Insurance Commissioners (NAIC), as
				  supplemented by additional New York forms and instructions.
(b) Section 4408 (5)  of the Public
				  Health Law and section
				  98-1.16(a), (b),
				  and (f) of Title 10 NYCRR provide that Public Health Law article 44 health
				  maintenance organizations and integrated delivery systems shall file financial
				  statements annually and quarterly with both the Commissioner of Health and the
				  superintendent. The commissioner has prescribed for use the forms and
				  instructions that are adopted from time to time by the NAIC, as supplemented by
				  additional New York forms and instructions.
(c) To assist in the completion of the
				  financial statements, the NAIC also adopts and publishes from time to time
				  certain policy, procedure, and instruction manuals. The latest of these
				  manuals, the Accounting Practices and Procedures Manual as of March
				  20231 (accounting manual), includes a body of
				  accounting guidelines referred to as statements of statutory accounting
				  principles (SSAPs). The accounting manual shall be used in the preparation of
				  quarterly statements and the annual statement for 2023, which will be filed in
				  2024.
(d) Section 1109 (e)  of the Insurance
				  Law authorizes the superintendent to promulgate regulations in effectuating the
				  purposes and provisions of the Insurance Law and article 44 of the Public
				  Health Law regarding health maintenance organizations, and section 4301(e)(5)
				  authorizes the superintendent to modify any regulatory requirement in order to
				  encourage the development of health maintenance organizations in this State.
				  Subdivision (7) of section 4408-a  of the Public Health Law
				  (integrated delivery systems) authorizes the superintendent, jointly with the
				  Commissioner of Health, to establish standards governing the fiscal solvency of
				  integrated delivery systems.
(e)
				  Section 4403-c (12)  of the Public
				  Health Law requires the filing of financial reports by comprehensive HIV
				  special needs plans. The Commissioner of Health has determined, as authorized
				  by Public Health Law, section
				  4403-a(3), that prepaid
				  health service plans shall file financial reports. Although annual and
				  quarterly statements of comprehensive HIV special needs plans and prepaid
				  health service plans are not to be filed with the superintendent, the
				  commissioner has determined that annual and quarterly statements of
				  comprehensive HIV special needs plans and prepaid health service plans should
				  follow accounting procedures that are consistent with those utilized by other
				  organizations holding certificates of authority in accordance with Public
				  Health Law, article 44.
(f) In
				  accordance with these sections, this Part sets forth certain accounting rules
				  applicable to Public Health Law, article 44 health maintenance organizations,
				  integrated delivery systems, prepaid health services plans and comprehensive
				  HIV special needs plans. This Part does not apply to managed long-term programs
				  licensed pursuant to section 4403-f  of the Public Health
				  Law.
(g)
(1) A codification manual was initially
				  adopted by the NAIC in March of 1998 with an effective date of January 1, 2001.
				  Since its adoption by the NAIC in 1998, the manual has been subject to a
				  prescribed and deliberate maintenance process at the NAIC. As a result of such
				  maintenance process, the anticipated procedure is that the NAIC will publish an
				  updated manual in March of each year.
(2) The Accounting Manual that is referred to
				  in subdivision (c) of this section and adopted by the superintendent in
				  accordance with the provisions of section
				  83.3(c) 
				  of this Part, subject to the "conflicts and exceptions" provisions of section
				  83.4  of
				  this Part, is the most recent published edition of the manual.
(3) In the time between the annual
				  publication of these manuals, in order to provide the most current information
				  on SSAPs that are presently under consideration at the NAIC, the NAIC has
				  placed certain accounting pronouncements on its web site until the next manual
				  is published. Access to the accounting pronouncements is available at the
				  NAIC's web site at
www.naic.org
.
(4) It is the superintendent's intention to
				  update this Part each year in order to adopt the newly published accounting
				  manual, subject to such exceptions (as set forth in section
				  83.4  of
				  this Part) as may be appropriate because of New York law or policy. If it
				  becomes necessary for the superintendent to apprise the public and the
				  insurance industry of new information regarding accounting practices prior to
				  the next updating of this Part, the superintendent may issue circular letters
				  to provide advice and instruction, or the superintendent may amend this Part as
				  appropriate.
Footnotes
* ACCOUNTING PRACTICES AND PROCEDURES MANUAL AS OF MARCH
					 2017. © Copyright 1999 2017 by National Association of Insurance
					 Commissioners, in Kansas City, Missouri.