The Annual and Quarterly Statements for Health Insurance Accounting

The Annual and Quarterly Statements are the primary financial reports required by

state insurance departments and similar governmental jurisdictions (such as the

District of Columbia, the Virgin Islands, and Puerto Rico) for health companies. The

format of the Statement and the rules to be followed in preparing it are established by

the NAIC. The Annual Statement, often called “Statement” or “Blank,” consists of

the following:

• Title page and jurat

• Balance sheet (assets, liabilities, and surplus)

• Statement of income

• Statement of capital and surplus

• Statement of cash flow

• Underwriting and investment exhibits

• Various exhibits of data which support other parts of the statement

• Notes to financial statements

• Summary investment schedule

• General interrogatories

• Five year historical data

• Numerous schedules, supplemental schedules and exhibits

The Statement also includes a report of premiums, enrollment, and utilization to

policyholders for each state in which the Statement is filed. An illustrative 2007

Annual Statement appears as Appendix A.

Although similar in format to the Annual Statement, the Quarterly Statement omits

many of the exhibits and schedules. It presents information on a year-to-date basis.