ASOP No. 11, which was first adopted in 1989, superseded Recommendation No. 4 and Interpretation No. 4-A of the Financial Reporting Recommendations and Interpretations of the American Academy of Actuaries that covered certain aspects of generally accepted accounting principles financial reporting on reinsurance ceded by life and health insurance companies. The ASOP was revised in 2005 to reflect changes in reinsurance practice and related accounting guidance. Since 2005, significant new guidelines and requirements for life insurance policies and annuity contracts had emerged. The proposed revision of ASOP No. 11 would apply to actuaries when performing actuarial services in connection with preparing, determining, analyzing, or reviewing financial reports for internal or external use that reflect reinsurance programs on life insurance, annuities, or health benefit plans. The comment deadline for the ASOP No. 11 exposure draft is March 31, 2020.
The first exposure draft of ASOP No. 32 was issued in October 2018. Seven comment letters were received and considered in making changes that are reflected in the second exposure draft. Notable changes to the second exposure draft include clarifying the scope to cover situations when a program was not specifically included or excluded from the scope, and expanding the scope to apply to actuaries when performing actuarial services in connection with an actuarial analysis of a Social Insurance Program when the actuary’s principal is not a government agency with responsibility for the valuation of a Social Insurance Program. The comment deadline for the ASOP No. 32 exposure draft is Feb. 14, 2020.
Both drafts can be viewed under the “Drafts” tab in “Exposure Drafts Open for Comment.” Information on how to submit comments can be found in the drafts.
