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.