05 SRA Exhibit 18a

EXHIBIT 18A

GUIDELINES FOR PREPARING EXHIBIT 18B
Exhibit 18B is to be prepared based on the National Association of Insurance Commissioners
(NAIC) Uniform Accounting section of the NAIC Financial Examiners Handbook, with the
exceptions listed below. Only expenses associated with the sales and service of eligible crop
insurance contracts reinsured under the Standard Reinsurance Agreement (SRA) should be
reported. Exhibit 18B must be completed in its entirety. However, the expense items indicated
below should be excluded altogether. No entry should be made on the shaded lines and the
amounts thereby excluded should not be inserted elsewhere. The expenses in Exhibit 18B may be
audited by FCIC and the company may be required to substantiate amounts reported. The
numeric and alphabetic designators used below follow those of Exhibit 18B.
5.

Boards, Bureaus, and Associations
• Membership fees: Do not report fees, professional or otherwise, that are paid for
individuals.
• Association dues: Do not report the portion of any association's dues that are used
for lobbying.

8.

Salary Related Items
• Salaries: Do not report any type of dividend or profit sharing payment as a bonus
or salary. Bonuses must to be based on individual performance evaluations.

9.

Employee Relations and Welfare
• Do not report expenses related to employee gatherings, outings, entertainment,
food and catering, or donations to or on behalf of employees.

12.

Travel and Travel Items
• Do not report expenses related to: transportation, hotel, meal and entertainment
of guests; favors, presents or souvenirs; dues and subscriptions to social or civic
clubs or affairs, the purchase or rental of viewing space/seating to sporting,
cultural, or other entertainment events, and country club membership fees; nonwork related travel and entertainment expenses such as promotional or
compensation related trips, including but not limited to incentive travel.

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EXHIBIT 18A

18.

Legal and Auditing
• Do not report expenses paid for reorganization or defense against Government or
Anti-Trust suits.

20.

Taxes, Licenses and Fees
• All other (excluding Federal Income and Real Estate) - Do not report state income
taxes.

21.

Real Estate Expenses
•

22.

Real Estate Taxes
•

24.

Do not report expenses incurred for investment property.

Do not report taxes incurred for investment property.

Miscellaneous
• Do not report: donations to charities; lease payments for intangible assets such as
insurance business; expenses related to the acquisition of other companies;
reinsurance premiums; lobbying expenses and political contributions; interest paid
on late paid premiums to FCIC.
• However, do report on a separate line under Miscellaneous the actual interest
expense associated with funding administrative expenses incurred prior to the
receipt of A&O subsidies, or the imputed interest expense of funding such
administrative expenses if the Company self-finances this amount.

To the extent that the foregoing expenses are not to be reported on Exhibit 18B, the Company, at
its option, may elect to identify those expenses and to report them to FCIC on a separate form for
information purposes.

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