Minor errata in the Health Handbook for 2012

[Bruce]

We want to inform you of the following minor errata we have recently found in the 2012 Health Annual Statement Handbook. Due to the rapidly approaching deadline for the 2012 Annual Statement filing, we did not want to delay getting you this information by taking the time to prepare and distribute replacement pages for the print version or to modify the web access or TCP Help versions. Instead the changes will be made in the 2013 edition.

The errata are listed in the order they appear in the print version of the Handbook. You may wish to print this post so that you can quickly check it to see if it applies as you refer to the print or online versions of the Health Annual Statement Handbook on a given issue:

Section 3.2 (Model Company and Statement): Note 2 to Triad's illustrative completed Annual Statement should have addressed the effect of implementing SSAP 101.

Page 1-50 (Section 1.4 Data Relationships within the Annual Statement/ Relationships with Affiliates, first bullet under item C): Should have referred to Page 28, Lines 26 to 33 (rather than 32).

Page 1-53 (Section 1.5 Statutory Lines and Sub-Lines of Business/Pages in the Annual Statement with the Major Statuory Lines of Business, first row in fourth column of table): Should have given Page 38 for Schedule T (rather than 36).

Page 2-12 (Section 2.3 General Filing Considerations/Paper (Hard-Copy) Filings, first sentence in second paragraph): Should have referred to pages 1 through 44 (rather than 42).

Page 9-4 (Section 9.2 Page 9 - U&I Part 2 - Claims Incurred During the Year/Purpose of Part 2 - Claims Incurred Furing the Year, third paragraph): Delete the rest of the paragraph after "Line 17 "Total Hospital and Medical"." [The deleted material erroneously states that write-in benefits on Page 7 (and Page 4) are not included in U&I Part 2, when in fact they are included.]

Page 13-6 (Section 13.2 Pages 30 to 37 - Schedule S - Reinsurance/Preparation Overview/Certified Reinsurer Penalty, second sentence): Should have referred to Page 3, Line 20 (rather than 24.02, the location in the Life Blank).

Page 19-2 (Section 19.1 Page 28 - Five-Year Historical Data/2012 Considerations): Should have mentioned new line 33 "Total investment in parent included in Lines 26 to 31 above."

Page 19-4 (Section 19.2 Risk-Based Capital/Accounting Considerations, last bullet list): First two bullets should have read as follows:

• No Action. "Total Adjusted Capital" is 200% or more of the "Authorized Control Level Risk-Based Capital" amount.
• Company Action Level. "Total Adjusted Capital" is more than 150% but less than 200%.

Comment: Although the Health RBC filing does include a trend test (200 to 300% with combined ratio > 105%), it is informational only at this time and does not impact action levels.

Page 20-1 (Section 20.1 Supplemental Exhibits and Schedules Interrogatories): Should refer to Page 43 (rather than 41) as location of the schedule.

Pages 20-3 and 20-4 (Section 20.1 Supplemental Exhibits and Schedules Interrogatories): Provides obsolete version of illustrative schedule for Triad. See Section 3.2 Completed Statement, Pages 43 and 43.1 for correct version.

Page 22-1 (Section 22.1 Quarterly Statements/2012 Considerations, last sentence in third paragraph): Should refer to Page 5, Line 43 (rather than Page 4, line 31) to report the cumulative effect of changes in accounting principles.