The statutory guidance for guaranty fund and other assessments is included in SSAP 35R. This guidance, which is based on ASC 405-30, Insurance - Related Assessments, with certain modifications, requires accrual when (a) an assessment has been imposed or it is probable that an assessment will be imposed, (b) the event obligating the entity to pay an imposed or probable assessment has occurred on or before the date of the financial statements, and (c) the amount of the assessment can be reasonably estimated. The guidance differs from GAAP in that liabilities for guaranty fund assessments may not be discounted except as discussed below. SSAP 35R also notes that it rejects the use of a valuation allowance for premium tax offsets and policy surcharges, and requires write off to the income statement when it is probable that the asset is no longer realizable; in practice, this difference seems unlikely to be material. With the exception of health-related assessments, all assessments are recorded as part of taxes, licenses, and fees, and not as part of underwriting expenses. Health-related assessments are reported as part of claims expense.

GAAP guidance (refer to ASC 405-30-30-9) specifically allows the liability to be discounted when the amount and timing of the cash payments are fixed or reliably determinable.

Effective January 1, 2017, SSAP 35R was revised to require discounting of long-term care guaranty fund assessment liabilities and related premium tax credit assets for insurers that wrote long-term care contracts. The guidance requires the use of the maximum valuation interest rate for whole life policies, updated annually. Detailed disclosures are required, including the undiscounted and discounted amounts, discount rate, range of years to discount the asset and liability, and other requirements. The new guidance is applicable only to long-term care guaranty fund liabilities and assets.

In connection with considering special guidance for long-term care guaranty fund assessments, the NAIC also adopted revisions to the premium tax offset guidance. In-force policies do not include expected renewals of short-term contracts except in situations where retrospective-premium-based assessments are imposed on contracts for the insolvencies of insurers that wrote long-term care contracts. In which case, to the extent that it is probable that accrued liability assessments will result in a recoverable amount in a future period from business currently in force, appropriate renewal rates of short-term health contracts shall be taken into consideration when recognizing the asset.” This revision creates a GAAP to statutory difference for premium tax offset assets.