12 Days of SSAP – Market Mutual Funds Revisions

As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are going to instead focus on the latest changes to SSAP and how they will impact your insurance company in 2018 and beyond.

On the first day of SSAP JLK Rosenberger told to me – Money Market Mutual Funds Revisions.

SSAP No. 2 and SSAP No. 26 were revised to report all Money Market Mutual Funds (MMMFs) as cash equivalents and reported on Schedule E – Part 2. Investments in MMMFs shall be valued at fair value or net asset value (NAV) as a practical expedient.  They will have no charge for RBC.

Prior guidance required companies to record MMMFs either as short-term investments reported on Schedule DA or evaluated under the measurement method of SSAP No. 26. If the MMMF was on the SVO exempt list, it would have no charge to RBC.  All other MMMFs were to be reported at fair value with a .03% or .04% RBC charge.