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butioTitlenOfficial NAICAnnual Statement InstructionsforDistriFor the 2020 reporting yearAdopted by the NAIC as of June 2020otUPDATES TO THESE INSTRUCTIONSNThere may be modifications to these instructions from year to year. As such, guidance is subject to themaintenance process. Revision bars in the left margin identify changes from the previous year, andmodifications that may occur during the current year are made available on the NAIC website athttps://naic-cms.org/cmte e app blanks.htm.CONTENT QUESTIONSQuestions regarding the content of these instructions should be directed to Calvin Ferguson, SeniorInsurance Reporting Analyst, at cferguson@naic.org.ORDER INQUIRIESOrder inquiries may be addressed by an NAIC customer service representative at prodserv@naic.org.
The NAIC is the authoritative source for insurance industry information. Our expert solutions supportthe efforts of regulators, insurers and researchers by providing detailed and comprehensive insuranceinformation. The NAIC offers a wide range of publications in the following categories:Special StudiesStudies, reports, handbooks and regulatoryresearch conducted by NAIC members on a varietyof insurance-related topics.Consumer InformationImportant answers to common questions aboutauto, home, health and life insurance — as well asbuyer’s guides on annuities, long-term careinsurance and Medicare supplement plans.Statistical ReportsValuable and in-demand insurance industry-widestatistical data for various lines of businessincluding auto, home, health and life insurance.Financial RegulationUseful handbooks, compliance guides and reportson financial analysis, company licensing, stateaudit requirements and receiverships.Supplementary ProductsGuidance manuals, handbooks, surveys andresearch on a wide variety of issues.butiotriCapital Markets & Investment AnalysisInformation regarding portfolio values andprocedures for complying with NAIC reportingrequirements.rDisLegalComprehensive collection of NAIC model laws,regulations and guidelines; state laws on insurancetopics; and other regulatory guidance on antifraudand consumer privacy.nAccounting & ReportingInformation about statutory accounting principlesand the procedures necessary for filing financialannual statements and conducting risk-basedcapital calculations.foMarket RegulationRegulatory and industry guidance on marketrelated issues, including antifraud, product filingrequirements, producer licensing and marketanalysis.NotNAIC ActivitiesNAIC member directories, in-depth reporting ofstate regulatory activities and official historicalrecords of NAIC national meetings and otheractivities.White PapersRelevant studies, guidance and NAIC policypositions on a variety of insurance topics.For more information about NAICpublications, visit us at:http://www.naic.org//prod serv home.htm 1992-2020 National Association of Insurance Commissioners. All rights reserved.ISBN: 978-1-64179-082-6Printed in the United States of AmericaNo part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic ormechanical, including photocopying, recording, or any storage or retrieval system, without written permission from the NAIC.NAIC Executive Office444 North Capitol Street, NWSuite 700Washington, DC 20001202.471.3990NAIC Central Office1100 Walnut StreetSuite 1500Kansas City, MO 64106816.842.3600NAIC Capital Markets& Investment Analysis OfficeOne New York Plaza, Suite 4210New York, NY 10004212.398.9000
TABLE OF CONTENTSPage #Annual Statement GeneralForeword . 1General. 3Actuarial Opinion . 7Annual Audited Financial Reports. 17Management’s Discussion and Analysis. 19Financial StatementNotforDistributionJurat Page. 25Assets . 30Liabilities, Surplus and Other Funds . 39Operations and Investment Exhibit – Statement of Income and Capital and Surplus Account . 45Cash Flow . 51Operations and Investment ExhibitPart 1A – Summary of Title Insurance Premiums Written and Related Revenues. 65Part 1B – Premiums Earned Exhibit . 67Part 2A – Losses Paid and Incurred . 69Part 2B – Unpaid Losses and Loss Adjustment Expenses . 71Part 3 – Expenses . 74Part 4 – Net Operating Gain/Loss Exhibit . 90Exhibit of Net Investment Income . 93Exhibit of Capital Gains (Losses) . 97Exhibit of Nonadmitted Assets . 100Notes to Financial Statements. 101General Interrogatories . 237Five-Year Historical Data . 242State Page . 249Schedule E – Part 1D – Summary – Segregated Funds Held for Others and Company Funds on Hand and onDeposit . 253Schedule FGeneral Instructions . 255Part 1 – Assumed Reinsurance as of December 31, Current Year. 260Part 2 – Ceded Reinsurance as of December 31, Current Year . 263Part 3 – Provision for Unauthorized Reinsurance as of December 31, Current Year . 267Part 4 – Provision for Reinsurance Ceded to Certified Reinsurers as of December 31, CurrentYear . 270Schedule HPart 1 – Title Plants Owned at December 31 Current Year and Basis of Valuation . 275Part 2 – Title Plants Acquired During the Year . 277Part 3 – Title Plants Sold or Otherwise Disposed of During the Year . 279Verification Between Years . 281Part 4 – Total Title Assets Held Directly or By Subsidiaries . 282 1992 – 2020 National Association of Insurance CommissionersiTitle 2020
Page #Schedule PfoInvestment SchedulesrDistributionGeneral Instructions . 283Part 1 – Summary . 285Part 1A – Policies Written Directly . 287Part 1B – Policies Written Through Agents . 287Part 2 . 287Part 2A . 287Part 2B . 288Part 2C . 288Part 2D . 288Part 3 . 288Part 3A . 289Part 3B . 289Part 3C . 289Part 4 . 289Part 4A . 289Part 4B . 290Part 4C . 290Part 5 . 290Part 5A . 290Part 5B . 290Part 5C . 290Schedule T – Exhibit of Premiums Written Premium and Annuity Considerations . 291Schedule Y – Information Concerning Activities of Insurer Members of a Holding Company GroupPart 1 – Organizational Chart . 295Part 1A – Detail of Insurance Holding Company System . 296Part 2 – Summary of Insurer's Transactions with Any Affiliates . 300NotInvestment Schedules General Instructions . 303Summary Investment Schedules and Verifications (SI Pages)Summary Investment Schedule . 311Schedule A – Verification Between Years – Real Estate . 319Schedule B – Verification Between Years – Mortgage Loans. 321Schedule BA – Verification Between Years – Long-Term Invested Assets . 323Schedule DVerification Between Years – Bonds and Stocks . 325Summary By Country – Long-Term Bonds and Stocks Owned December 31 ofCurrent Year . 327Part 1ASection 1 – Quality and Maturity Distribution of All Bonds OwnedDecember 31 by Major Type and NAIC Designation . 328Section 2 – Maturity Distribution of All Bonds OwnedDecember 31 by Major Type and Sub-Type . 331 1992 – 2020 National Association of Insurance CommissionersiiTitle 2020
NotforDistributionPage #Schedule DA – Verification Between Years – Short-Term Investments . 334Schedule DBPart A – Verification Between Years – Options, Caps, Floors, Collars, Swapsand Forwards . 336Part B – Verification Between Years – Futures Contracts . 337Part CSection 1 – Replication (Synthetic Asset) Transactions (RSAT)Open on December 31 of Current Year . 339Section 2 – Reconciliation of Replication (Synthetic Asset)Transactions Open . 341Verification . 342Schedule EPart 2 – Verification Between Years – Cash Equivalents . 343Detail Investment Schedules (E Pages)Schedule APart 1 – Real Estate Owned December 31 of Current Year . 345Part 2 – Real Estate Acquired and Additions Made During the Year . 350Part 3 – Real Estate Disposed During the Year . 353Schedule BGeneral Instructions . 357Part 1 – Mortgage Loans Owned December 31 of Current Year . 360Part 2 – Mortgage Loans Acquired During the Year . 363Part 3 – Mortgage Loans Disposed, Transferred or Repaid in During the Year . 365Schedule BAGeneral Instructions . 369Part 1 – Other Long-Term Invested Assets Owned December 31 of CurrentYear . 375Part 2 – Other Long-Term Invested Assets Acquired During the Year . 383Part 3 – Other Long-Term Invested Assets Disposed, Transferred or Paid inFull During the Year . 387Schedule DPart 1 – Long-Term Bonds Owned December 31 of Current Year. 393Part 2Section 1 – Preferred Stocks Owned December 31 of Current Year. 409Section 2 – Common Stocks Owned December 31 of Current Year. 418Part 3 – Long-Term Bonds and Stocks Acquired During Current Year . 427Part 4 – Long-Term Bonds and Stocks Sold, Redeemed or Otherwise Disposedof During Current Year. 432Part 5 – Long-Term Bonds and Stocks Acquired During the Current Year andFully Disposed of During Current Year . 439Part 6Section 1 – Valuation of Shares of Subsidiary, Controlled orAffiliated Companies . 446Section 2 . 450Schedule DA – Part 1 – Short-Term Investments Owned December 31 of Current Year . 451 1992 – 2020 National Association of Insurance CommissionersiiiTitle 2020
Page #Schedule DBbutionDerivative Instruments – General Instructions. 459Part AGeneral Instructions. 462Section 1 – Options, Caps, Floors, Collars, Swaps and ForwardsOpen December 31 of Current Year . 467Section 2 – Options, Caps, Floors, Collars, Swaps and ForwardsTerminated During the Year. 475Part BGeneral Instructions. 481Section 1 – Futures Contracts Open December 31 of Current Year. 483Section 2 – Futures Contracts Terminated During the Year. 489Part DSection 1 – Counterparty Exposure for Derivative InstrumentsOpen December 31 of Current Year . 493Section 2 – CollateralforDerivativeInstrumentsOpenDecember 31 of Current Year . 497Part E – Derivatives Hedging Variable Annuity Guarantees . 499Schedule DLSchedule E– Cash . 519– Cash Equivalents . 521– Special Deposits . 526rDPart 1Part 2Part 3triPart 2– Securities Lending Collateral Assets (Aggregated on Line 10 of theAsset Page) . 501– Securities Lending Collateral Assets (Not Aggregated on Line 10 ofthe Asset Page) . 510isPart 1Annual SupplementsAppendixotfoSupplemental Investment Risks Interrogatories . 529Schedule SIS – Stockholder Information Supplement . 535Supplemental Compensation Exhibit . 537Supplemental Schedule of Business Written By Agency . 540NBar Codes . 541Country of Domicile Abbreviations. 543EDITOR’S NOTE:Some statement pages and items are considered self-explanatory and have no instructions other than what appears on theprinted statement blank. 1992 – 2020 National Association of Insurance CommissionersivTitle 2020
otNbutiotriisrDfonAnnual StatementGeneral
INSTRUCTIONSFor Completing Title Annual Statement BlankFOREWORDLine titles and columnar headings of the various statement items and lines are in general self-explanatory and as suchconstitute instructions. Specific instructions are prescribed for items and lines about which there might be questions as tocontent. Make any entry for which no specific instruction appears in accordance with sound insurance accounting principlesand in a manner consistent with related items and lines covered by specific instructions. The NAIC Accounting Practices andProcedures Manual is one reference for guidance concerning statutory accounting principles.For U.S. branches of non-U.S. insurers:butionIn completing the annual statement blank, report all business done by the U.S. branch in the United States. Thedifference between the amounts reported on the Asset page, Line 28, Net Admitted Assets Column and the Liabilitypage, Line 23, Total Liabilities shall be reported on the Liability page, Line 30.triThe format of the annual statement facilitates data capture. Therefore, do not change the captions for pre-printed items, lines,or columns and do not insert write-ins between pre-printed items, lines or columns (however, these requirements do not applyto the signature lines on the Jurat Page). An entry for which no specific pre-printed line title appears (for example, DeferredOption Income) should be included in the appropriate write-in line for each schedule or applicable page. Include anidentifying title with each entry. Report write-in lines in descending order. The statement provides a limited number of linesfor write-ins in each applicable section. Do not modify these pre-printed write-in detail schedules. If there is not sufficientroom in a write-in detail schedule to accommodate all write-ins to be reported therein, report the write-in detail overflow onpages sequentially numbered beginning with Page 47 (Overflow page), followed by 47.1, 47.2, etc. In such instances, carrythe summary of write-in overflow lines from this page to the prescribed line in the write-in detail schedule.isEach overflow write-in section should adhere to the following example:rDPage 2ASSETSDETAILS OF WRITE-INS AGGREGATED AT LINE 25 FOR OTHER-THAN-INVESTED-ASSETSotfoWrite-in caption aaaaWrite-in caption bbbbWrite-in caption ccccSummary of remaining write-ins for Line 25 from Overflow pageTOTAL (Lines 2501 through 2503 plus 2598) (Page 2, Line 508.2509.2597. 500,000350,000250,000300,0001,400,000Overflow PagePage 2 – ContinuationAssetsRemainder of Write-ins Aggregated in Line 25Write-in caption ddddWrite-in caption eeeeWrite-in caption ffffWrite-in caption ggggWrite-in caption hhhhWrite-in caption iiiiSummary of remaining write-ins for Line 25(Lines 2504 through 2596) (Page 2, Line 2598) 1992 – 2020 National Association of Insurance Commissioners1 100,00075,00050,00050,00020,0005,000 300,000Title 2020
More than one detail overflow section may appear on one page. However, the items should remain in page number order.Notwithstanding the prohibition against changing the captions of pre-printed items or columns and against inserting write-insbetween pre-printed lines or columns, certain portions of the annual statement may require more lines than are provided.When additional lines are required within any of these statement areas, companies shall continue the sequence of either thepre-printed line number range, or the line number range described in the appropriate instruction area.When the use of such additional lines requires more room than exists on the pre-printed page, the continuation should bepresented on a page, inserted immediately following the pre-printed page, designated as page n.1, n.2, etc. For instance, ifSchedule BA, Part 1, Other Long-Term Invested Assets requires more lines, the continuation would be presented onPage E07.1, E07.2, etc. Adequately caption all such additional pages to enable ready identification.Pre-printed subtotal, total, and grand total lines have specific line numbers assigned. The prescribed subtotal line numbers areset forth in the instructions for the respective annual statement page or part thereof, to which they pertain.NotforDistributionIn most instances, the information appearing in the various sections of the statement will be sufficient to meet examinationneeds. However, each company must maintain adequate records and work papers to support the detail of all accountingtransactions, enabling verification of the year-end statement values. Company management should perform a periodic reviewto determine that these records are accurate, sufficiently detailed, and retained in orderly, safe storage with appropriateretention periods. 1992 – 2020 National Association of Insurance Commissioners2Title 2020
GENERALComplete the annual statement in accordance with the NAIC Annual Statement Instructions and Accounting Practices andProcedures Manual except to the extent that: (1) state law may differ, or (2) state rules or regulations require differences inreporting. If guidance is not available from those sources, consult the domiciliary state’s insurance regulatory authority.Companies are required to file the quarterly statement 45 days after the end of the quarter and the annual statementon or before March 1 for the preceding calendar year, unless otherwise required.2.The reporting date and the legal name of the company must be plainly written or stamped at the top of all pages,exhibits and schedules (and duplicate schedules) and also upon all inserted schedules and loose sheets. Wherepermitted, the assumed name can accompany the legal name.3.It is the responsibility of the company to prepare and utilize the barcodes correctly. See the Appendix within theseinstructions for use of specific barcodes.4.Printed statements or copies produced by some duplicating process on the actual blanks required by this Department,will be accepted if:bution1.Bound in covers similar in color to the blanks required by this Department.b.Printed or duplicated by a process resulting in permanent black characters on a good grade of paper of lightcolor.c.Such statements and all supporting schedules contain all the information required, with the same headings andfootnotes, and are of the same size and arrangement, page for page, column for column, and line for line, as inthe blanks required by this Department, unless the company is otherwise instructed.tria.rDisState insurance departments, other than the state of domicile, must choose to receive certain detailed investmentschedules (as listed below) in hardcopy. The state filing instructions will serve as notice regarding the requirements.However, even if the detailed investment schedules are required by a state other than where the reporting entity isdomiciled, those detailed pages may be included in a separate bound statement, provided some reference to the factis included with the regular filing and in the location where those pages would be included.foThe following schedules are to be filed in paper copy with the state of domicile only, unless specifically requestedby other admitted states. The state filing checklist and instructions will serve as notice regarding the paper filingrequirements.NotSchedule ASchedule BSchedule BASchedule D, Parts 1 6 (excluding Part 1A)Schedule DA, Part 1Schedule DB, Parts A–ESchedule DL, Parts 1 and 2Schedule E, Parts 1, 2 and 3If the reporting entity is filing with the NAIC, that filing shall be via the Internet only.Photocopied or faxed pages are not acceptable. 1992 – 2020 National Association of Insurance Commissioners3Title 2020
Printing StandardsCommercial printers must be furnished with original laser printer output generated at appropriate laser settingsto give the highest print quality (no photocopied or faxed pages).b.No font smaller than 8-point type for the annual statement or 6-point type for all investment schedules may beused. Ornate fonts may not be used.c.Present numbers in non-bold, non-italic type.d.Numbers must be non-proportionally spaced.e.The annual and quarterly statements must be printed at 9 lines per inch.f.Unobtrusive dotted leader lines shall be printed across the page to guide the eye to the reported figures. Theyshould not touch the reported figures.g.Slashed zeros ( ) shall not be used.h.The number of detail write-in lines printed
Financial Regulation Useful handbooks, compliance guides and reports on financial analysis, company licensing, state audit requirements and receiverships. Supplementary Products Guidance manuals, handbooks, surveys and research on a wide variety of i
