Accounting Practices and Procedures ManualAs of March 2013TABLE OF CONTENTSStatements of Statutory Accounting Principles (SSAP) - Volume IIn October 2010, the Statutory Accounting Principles (E) Working Group adopted a proposal to remove100% superseded SSAPs and nullified interpretations (INTs) from Volume I of the Manual and includethese items within a new Appendix H in Volume III. Under this approach, only current authoritativeguidance is located in Volume I of the Manual, while preserving the historical reference needed foraccounting purposes. If a SSAP or interpretation has been superseded, it is included in Appendix 435R363738TitlePreamble .Disclosure of Accounting Policies, Risks & Uncertainties, and Other Disclosures .Cash, Drafts, and Short-term Investments .Accounting Changes and Corrections of Errors .Assets and Nonadmitted Assets .Liabilities, Contingencies and Impairments of Assets .Uncollected Premium Balances, Bills Receivable for Premiums, and Amounts DueFrom Agents and Brokers .Asset Valuation Reserve and Interest Maintenance Reserve .Subsequent Events .Postemployment Benefits and Compensated Absences .Employee Stock Ownership Plans .Debt and Holding Company Obligations .Electronic Data Processing Equipment and Accounting for Software .Preoperating and Research and Development Costs .Furniture, Fixtures and Equipment; Leasehold Improvements Paid by the ReportingEntity as Lessee; Depreciation of Property and Amortization of LeaseholdImprovements .Nonadmitted Assets .Other Admitted Assets .Leases .Foreign Currency Transactions and Translations .Discontinued Operations and Extraordinary Items .Accounting for and Disclosures about Transactions with Affiliates and Other RelatedParties .Bonds, Excluding Loan-Backed and Structured Securities .Disclosure of Information about Financial Instruments with Off-Balance-Sheet Riskand Financial Instruments with Concentrations of Credit Risk .Prepaid Expenses .Investments in Common Stock (excluding investments in common stock ofsubsidiary, controlled, or affiliated entities) .Investments in Preferred Stock (including investments in preferred stock ofsubsidiary, controlled, or affiliated entities) .Investment Income Due and Accrued .Guaranty Fund and Other Assessments .Troubled Debt Restructuring .Mortgage Loans .Acquisition, Development and Construction Arrangements . 1999-2013 National Association of Insurance 7-129-130-132-134-135R-136-137-138-1

Table of R95TitleReverse Mortgages .Real Estate Investments .Surplus Notes .Sale of Premium Receivables .Loan-Backed and Structured Securities .Capitalization of Interest .Uninsured Plans .Joint Ventures, Partnerships and Limited Liability Companies .Policy Loans .Classifications and Definitions of Insurance or Managed Care Contracts in Force .Life Contracts .Deposit-Type Contracts .Property Casualty Contracts–Premiums .Individual and Group Accident and Health Contracts .Unpaid Claims, Losses and Loss Adjustment Expenses .Separate Accounts .Title Insurance .Mortgage Guaranty Insurance .Credit Life and Accident and Health Insurance Contracts .Financial Guaranty Insurance .Life, Deposit-Type and Accident and Health Reinsurance .Property and Casualty Reinsurance .Underwriting Pools and Associations Including Intercompany Pools .Offsetting and Netting of Assets and Liabilities .Property and Casualty Contracts .Retrospectively Rated Contracts .Other Liabilities .Business Combinations and Goodwill .Statement of Cash Flow .Allocation of Expenses .Policy Acquisition Costs and Commissions .Surplus and Quasi-Reorganizations .Health Care Delivery Assets—Supplies, Pharmaceuticals and Surgical Supplies,Durable Medical Equipment, Furniture, Medical Equipment and Fixtures, andLeasehold Improvements in Health Care Facilities .Accounting for the Issuance of Insurance-Linked Securities Issued by a Property andCasualty Insurer Through a Protected Cell .Reporting on the Costs of Start-Up Activities .Multiple Peril Crop Insurance .Mezzanine Real Estate Loans .Certain Health Care Receivables and Receivables Under Government Insured Plans .Accounting for Derivative Instruments and Hedging, Income Generation, andReplication (Synthetic Asset) Transactions .Accounting for the Impairment or Disposal of Real Estate Investments .Accounting for Postretirement Benefits Other than Pensions, A Replacement ofSSAP No. 14 .Accounting for Low Income Housing Tax Credit Property Investments .Accounting for Transferable State Tax Credits .Exchanges of Nonmonetary Assets, A Replacement of SSAP No. 28—NonmonetaryTransactions . 1999-2013 National Association of Insurance 73-174-176-178-183-184-186-190-192-193-194R-195-1

Table of ContentsNo.97100101102103104TitleInvestments in Subsidiary, Controlled and Affiliated Entities, A Replacement ofSSAP No. 88 .Fair Value Measurements .Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10 .Accounting for Pensions, A Replacement of SSAP No. 89 .Accounting for Transfers and Servicing of Financial Assets and Extinguishments ofLiabilities .Share-Based Payments .Page97-1100-1101-1102-1103-1104-1INDEX to Statements of Statutory Accounting Principles - Volume I .Page1GLOSSARY to Statements of Statutory Accounting Principles - Volume I .Page17Appendix A – Excerpts of NAIC Model Laws – Volume -812A-815A-817A-818A-820A-821A-822TitleInvestments of Reporting Entities .Minimum Reserve Standards for Individual and Group Health Insurance Contracts.Separate Accounts Funding Guaranteed Minimum Benefits Under Group Contracts .Illustrative Disclosure of Differences Between NAIC Statutory Accounting Practicesand Procedures and Accounting Practices Prescribed or Permitted by the State ofDomicile .Managing General Agents .Interest-Indexed Annuity Contracts .Variable Annuities .Modified Guaranteed Annuities .Variable Life Insurance .Insurance Holding Companies .Universal Life Insurance .Modified Guaranteed Life Insurance .Accelerated Benefits .Title Insurance .Mortgage Guaranty Insurance .Long-Term Care Insurance .