Capital & Surplus Debenture Filings

Jan 15th, 08
Filing debentures with the SVO

The Securities and Valuation Office (SVO) of the NAIC amended its "Purposes and Procedures Manual of the NAIC Securities Valuation Office" in December of 2006 regarding capital and surplus debentures.  Beginning in 2007, all capital and surplus debentures must be filed with the SVO.  Part twelve of the manual states that any capital or surplus debenture rated by an NAIC ARO at an NAIC 1 equivalent must file a copy of the most recent rating letter issued by the NAIC ARO with the SVO on or before June 1 and December 1.  These securities will not be listed in the VOS database but will appear on the list in Section 11 of the Appendix of the manual.  All NAIC 1 equivalent capital and surplus debentures not appearing on the list must be reported to the SVO.  Debentures rated with an NAIC 2 through 6 equivalent must also be filed with the SVO and reported on the surplus notes line of Schedule BA, and should not be reported with the FE symbol.  Please refer to the Manual for further exemption and filing details.