Accounting Standard Updates
INT 20-11 Provides Relief to Insurers Impacted by Hurricanes, California Wildfires and Iowa Windstorms
Article reading time: 1 minute
Hot Take:
The Statutory Accounting Principles Working Group (SAPWG) recently exposed by e-vote an emergency interpretation providing relief to qualifying insurers that have been impacted by certain specifically named storms and California wildfires. The exposure is open for public comment through December 15, 2020. Partner Matt Woodard explains the details.
Full Article
On December 8, 2020, The Statutory Accounting Principles (E) Working Group released INT 20-11: Extension of Ninety-Day Rule for the Impact of 2020 Hurricanes, California Wildfires and Iowa Windstorms. SSAP No. 6—Uncollected Premium Balances, Bills Receivable for Premiums, and Amounts Due From Agents and Brokers, imposes a 90-day rule, which requires all billed uncollected premiums, bills receivable for premiums, and amounts due from agents outstanding over 90 days to be nonadmitted. This tentative interpretation provides a one-time, optional 60-day extension from the ninety-day rule for policies directly impacted by the following:
- Hurricane Isaias, Hurricane Laura, Hurricane Sally, Hurricane Delta, Hurricane Zeta, and Hurricane Eta and the related tropical storms or flooding from these six named hurricanes.
- California wildfires which were declared a disaster on or after August 1, 2020, some of which are ongoing during the fourth quarter of 2020.
- Iowa straight-line windstorms impacted policies in the counties in which a state of disaster was declared in August 2020.
This temporary relaxation of the 90-day rule is similar to previous extensions that have been granted for other major national storms and hurricanes. For this interpretation, the 60-day extension applies to uncollected premiums more than 90 days overdue from impacted policies at year-end 2020. If adopted, INT 20-11 will be nullified on March 1, 2021.
