Bond Definition Project Update: NAIC Training Course with Application and Transition Guidance

The evolution of bond definition began almost five years ago, at which point no one expected it to result in such substantial changes to SSAPs. We’ve followed the timeline closely until the final effective date for adopted changes was announced last year.

As we reflect, the NAIC adoptions related to the bond definition project mark some of the most significant transformations insurers will confront by 2025. Its magnitude is such that Schedule D-1 is set to undergo substantial expansion. The changes also coordinate certain definitions and descriptions between SSAP 26R and 43R, so SSAP 26R becomes the primary bond definition source. Enhanced definitions may lead to the reclassification of certain securities that no longer meet the revised criteria for bonds.

As everyone prepares to navigate the forthcoming changes related to the bond definition project taking effect on January 1, 2025, the NAIC is extending a helping hand.

An NAIC training course has been launched to offer insights into the newly adopted bond definition, along with comprehensive guidance on its application and transition. The course is available free of charge for the entirety of 2024. However, beginning in 2025, a fee is anticipated for non-regulators.

This self-paced course allows participants to commence their studies on any Monday and grants them one week to complete it. Its modular design enables participants to manage their time effectively by starting and stopping throughout the week at their convenience.

Register for EDU 350-118: Principles-Based Bond Project Training

In addition, all adopted materials relating to the principles-based bond project are publicly available on the SAPWG web page.

Take a deeper dive and learn more about changes becoming effective in 2025 here.