A permitted accounting practice differs from the accounting (or reporting) prescribed by the Washington Insurance Code. Permitted accounting practices must be approved by the Washington state insurance commissioner.
What the request for approval should contain:
- Company name and National Association of Insurance Commissioners (NAIC) number.
- Proposed effective date and date of the first filed financial statement in which the proposed permitted accounting practice will be reported.
- Detailed description of the requested permitted accounting practice and how it diverges from our prescribed practice. Include specific citations to the NAIC Accounting Practices and Procedures Manual and/or Title 48 RCW.
- Periods in which the proposed permitted accounting practice was previously in effect, if applicable.
- Time period in which the proposed permitted accounting practice will be effective (per WAC 284-07-530). The commissioner may only approve use of permitted accounting practices for up to one calendar year.
- Specific identification of each financial statement line item and its respective impact from the proposed permitted accounting practice. You must show the impact by comparing the financial statement prepared in accordance with our prescribed accounting practices against the financial statements using your proposed accounting practices.
- Total financial impact on the capital and surplus of the proposed permitted accounting practice and any other previously granted permitted accounting practices. The total impact must compare the financial statements prepared in accordance with Title 48 RCW; and, the NAIC's accounting practices and procedures manual and financial statements incorporating the permitted accounting practice.
- The capital and surplus impact of the proposed permitted accounting practice. Include this on a legal entity basis, on the domestic insurer, its ultimate and intermediate parents and all affiliated U.S. insurers. The capital and surplus effect must compare the financial statements prepared in accordance with Title 48 RCW and the NAIC's Accounting Practices and Procedures Manual.
Where to send a request for approval of a permitted accounting practice
Send us a message:
Company Supervision Filings
Postal mail:
Washington state Office of the Insurance Commissioner
Company Supervision Division
P.O. Box 40255
Olympia, WA 98504-0255
Other carriers:
Washington state Office of the Insurance Commissioner
Company Supervision Division
5000 Capitol Blvd.
Tumwater, WA 98501