Printer-friendly version (this section) (Opens as a PDF document)

Printer-friendly version (entire document) (Opens as a PDF document)

Section 3: Schedule BA Asset Q & A

Q: What documentation is required for a Schedule BA annual update filing?

A: An annual update ATF accompanied by the obligor’s most current audited financial statements.

Back to top

Q: The SVO’s list of Schedule BA assets posted on its website appears to contain instruments that should be reported on Schedule D. Why?

A: If an investment is filed as Schedule BA, we do not question the decision of the filer.

Back to top

Q: Are low-income housing tax credit instruments required to be filed under the Schedule BA filing initiative?

A: The SVO recommends that all investments that derive any part of their return from tax credits be filed on Schedule BA. The Classification and Designation will be the same as if filed on Schedule D.

Back to top

Q: Are all surplus notes required to be filed with the SVO? If not, why and which ones should be filed?

A: The P&P Manual provides that surplus notes with public ratings equivalent to NAIC1 may be filed for inclusion in the list in Section 11 of the appendix.

Surplus notes with public ratings equivalent of NAIC2 or lower, or unrated surplus notes must be valued according to the rules in SSAP41. These surplus notes must then be filed as Schedule BA assets with the SVO. The filing must include the latest annual blank for the issuer. The SVO will review and approve the “statement factor” for valuation that is specified in Paragraph 10b of SSAP41.

Q: Is it possible for a BA Asset to be FE rated?

A: It is not possible to have an FE on Schedule BA.

Back to top

Q: For common stock affiliates, what is the difference between Certain Other and All Other common affiliates?

A: Basically, if the affiliated stock falls under SSAP 48 - Joint Ventures, Partnerships and Limited Liability Companies - then it would be reported in the Certain Other category (Line 2099999). If not, and it can't be included by definition in any of the other categories, it would be reported in the All Other common affiliate (Line 389999). I hope we were referring to the correct line numbers, as there really is no category titled Certain Other.