Schedule BA input

[MaryO-PGLICL]

I am trying to enter a D in column 21, indicating fair value was determined internally by the insurer, but when I put a "D", the software tells me to Enter 1,2,or 3 with A,B,C,D,E.

I can't find instructions for these.

Thank you,
Mary Lou

[Debbie]

Whenever possible, fair value should represent the price at which the security could be sold, based on market information. Fair value should only be determined analytically when the market‑based value cannot be obtained.

The following is a listing of valid fair value level indicators to show the fair value hierarchy level.

1 for Level 1

2 for Level 2

3 for Level 3

The following is a listing of the valid method indicators for bonds to show the method used by the reporting entity to determine the Rate Used to Obtain Fair Value.

a for securities where the rate is determined by a pricing service.

b for securities where the rate is determined by a stock exchange.

c for securities where the rate is determined by a broker or custodian. The reporting entity should obtain and maintain the pricing policy for any broker or custodian used as a pricing source. In addition, the broker must either be approved by the reporting entity as a counterparty for buying and selling securities or be an underwriter of the security being valued.

d for securities where the rate is determined by the reporting entity. The reporting entity is required to maintain a record of the pricing methodology used.

e for securities where the rate is determined by the unit price published in the NAIC Valuation of Securities.

Enter a combination of hierarchy and method indicator. The fair value hierarchy level indicator would be listed first and the method used to determine fair value indicator would be listed next. For example, use 1b to report Level 1 for the fair value hierarchy level and stock exchange for the method used to determine fair value.

The guidance in SSAP No. 100R-Fair Value allows the use of net asset value per share (NAV) instead of fair value for certain investments. If NAV is used instead of fair value leave blank.

[MaryO-PGLICL]

Thank you,

Per SSAP 100R ? ?Net asset value per share is the amount of net assets attributable to each share of capital stock . . . outstanding at the close of the period.?

NAV is usually used for fund-type investments like mutual funds. I don?t think it?s applicable here because the value of the LIHTC is based on the credits we?ll be receiving and not the value of the LLC interest in Hawaii Housing Tax Credit Fund LLC. I don?t understand why we need to report fair value of the security when we are non-admitting it.

Can you suggest wording to put into the validation as an explanation?

Thank you,
Mary Lou

[Debbie]

Would you provide the validation error number(s) with which you are having issues? It seems like we are discussing 2 different things.

If you would send a PDF of your validation listing to bookesupport@sovos.com, that would help tremendously.

[MaryO-PGLICL]

I just sent it.

Thanks much