explanation, any material amounts. Information comparable to that required under caption 6 of this rule shall be given for items shown under this caption.

15. Net income from other operations. 16. Net investment income and net income from other operations before realized gain or loss on investments.

GAIN OR LOSS ON INVESTMENTS

17. Realized gain or loss on sales of investments. (a) State in an appropriate manner the aggregate cost, aggregate proceeds, and net gain or loss from sales of each of the following classes of investments; (i) investments in securities of affiliates; (ii) investments in other securities, showing United States Government bonds and other direct government obligations separately; and (iii) other investments, exclusive of gain or loss on sale of mortgage loans on real estate. See text under caption 13 above.

(b) Transactions in shares of the person for which the statement is filed shall not be included here.

(c) State in a note the aggregate cost of securities acquired during the period, showing separately (i) United States Government bonds and other direct government obligations; (ii) other securities; and (iii) mortgages on real estate.

each person and for each group for which separate statements are filed. Such schedules shall be certified if the related balance sheet is certified.

(2) All other schedules specified in this section shall be filed for each period for which a profit and loss or income statement is filed, except as indicated for schedules III and IV. Such schedules shall be certified if the related profit and loss or income statement is certified.

(b) The information required in schedules for the registrant, for the consolidated subsidiaries and for the registrant and its subsidiaries consolidated may be presented in the form of a single schedule: Provided, That items pertaining to the registrant and to each consolidated subsidiary or group for which separate statements are required are separately shown and that such single schedule affords a properly summarized presentation of the facts.

(c) If the information required by any schedules (including the notes thereto) may be shown in the statements required by §§ 210.0-22 and 210.6-23 without making such state

18. Realized gain or loss on other transactions. (a) Include under this caption exchanges of investments. Show the aggregate cost of the investments released stating, as to interest-bearing obligations, principal and interest separately and, as to the proceeds of the exchanges, the aggregate amount at which the investments acquired were recorded in the accounts.

(b) Include also under this caption any writedowns required by § 210.6-21(f). Show the aggregate cost and the aggregate adjusted cost of the investments involved.

19. Net income before provision for income taxes.

20. Provision for taxes on income. State separately (a) Federal income taxes, and (b) other income taxes.

21. Net income or loss. The amount included under this caption shall be carried to the related subdivision of surplus.

§ 210.6-24 What schedules are to be filed. (a) Except as otherwise expressly provided in the applicable forms:

(1) The schedules specified in this section as schedules I, V, XI, XII, and XIII shall be filed as of the date of the most recent balance sheet filed for

cedure may be followed and the schedule omitted.

(d) Reference to the schedules shall be made against the appropriate captions of the balance sheet and the profit and loss or income statement.

A. INVESTMENT SCHEDULES

Schedule I-Investment in securities of unaffiliated issuers. The schedule prescribed by § 210.12-35 shall be filed in support of captions 6(a) and 12 of each balance sheet. Separate schedules shall be furnished in support of each caption, if applicable.

Schedule II-Investments in and advances to affiliates and income thereon. The schedule prescribed by § 210.12-36 shall be filed in support of captions 10 and 13 of each balance sheet and caption 1(a) of each profit and loss or income statement. Separate schedules shall be furnished in support of each caption, if applicable.

Schedule III-Mortgage loans on real estate and interest earned on mortgages. The schedule prescribed by § 210.12-37 shall be filed in support of captions 6(b) and (c) and 12 of each balance sheet and caption 1(a)(i) of each profit and loss or income statement, except that only the information required by column G and note 8 of the schedule need be furnished in support of

profit and loss or income statements for years for which related balanace sheets are not required.

Schedule IV-Real estate owned and rental income. The schedule prescribed by §210.12-38 shall be filed in support of captions 7 and 12 of each balance sheet and caption 1(a)(iv) of each profit and loss or income statement for rental income included therein, except that only the information required by columns H, I, and J, and item "Rent from properties sold during the period" and note 4 of the schedule need be furnished in support of profit and loss or income statements for years for which related balance sheets are not required.

B. MISCELLANEOUS SCHEDULES

Schedule V-Qualified assets on deposit. The schedule prescribed by § 210.12-41 shall be filed in support of note required by caption 11 of § 210.6-22 as to total amount of qualified assets on deposit.

Schedule VI-Amounts due from directors and officers. The schedule prescribed by §210.12-03 shall be filed with respect to each person among the directors and officers from whom any amount was owed at any time during the period for which related profit and loss or income statements are filed. The schedule shall include also amounts due from employees. These amounts may be shown in an aggregate amount setting forth separately the amount due (1) from office employees and (2) sales employees, stating the total number of employees in each class. State if an exemption has been granted by the Commission with respect to amounts included in this schedule.

Schedule VII-Indebtedness to affiliatesNot current. The schedule prescribed by §210.12-11 shall be filed in support of caption 20 of each balance sheet. This schedule and schedule II may be combined if desired.

Schedule VIII-Supplementary profit and loss information. The schedule prescribed by § 210.12-39 shall be filed in support of each profit and loss or income statement.

C. RESERVE SCHEDULES

Schedule IX-Certificate reserves. The schedule prescribed by § 210.12-40 shall be filed in support of caption 16 of each balance sheet.

Schedule X-Reserves-Other. The schedule prescribed by § 210.12-13 shall be filed in support of all other reserves included in the balance sheet.

D. CAPITAL SECURITIES

Schedule XI-Funded debt. The schedule prescribed by § 210.12-10 shall be filed in support of caption 19 of each balance sheet.

Schedule XII-Capital shares. The schedule prescribed by § 210.12-14 shall be filed in support of caption 25 of each balance sheet.

Schedule XIII-Other securities. Schedules shall be filed in respect of any classes of securities issued by the person for whom the statement is filed, but not included in schedules XI and XII. As to guarantees of securities of other issuers, furnish the information required by § 210.12-12. As to warrants or rights granted by the person for whom the statement is filed, to subscribe for or purchase securities to be issued by such person, furnish the information called for by § 210.12-15. As to any other securities, furnish information comparable to that called for by §§ 210.12-10, 210.12-12, 210.1214, or 210.12-15, as appropriate. Information need not be set forth, however, as to notes, drafts, bills of exchange or bankers' acceptances having a maturity at the time of issuance of less than one year.

EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR PLANS

SOURCE: Sections 210.6-30 to 210.6-34 appear at 27 FR 7870, Aug. 9, 1962, unless otherwise noted.

§ 210.6-30 Application of §§ 210.6-30 to

210.6-34.

Sections 210.6-30 to 210.6-34 shall be applicable to financial statements filed for employees stock purchase, savings and similar plans.

§ 210.6-31 Special rules applicable to employee stock purchase, savings and similar plans.

The financial statements filed for persons to which this article is applicable shall be prepared in accordance with the following special rules in addition to the general rules in §§ 210.101 to 210.4-14. Where the requirements of a special rule differ from those prescribed in a general rule, the requirements of the special rule shall be met.

(a) Investment programs. If the participating employees have an option as to the manner in which their deposits and contributions may be invested, a description of each investment program shall be given in a footnote or otherwise. The number of employees under each investment program shall be stated.

(b) Net asset value per unit. Where appropriate, the number of units and the net asset value per unit shall be given by footnote or otherwise.

(c) Federal income taxes. (1) Appropriate provision shall be made, on the basis of the applicable tax laws, for Federal income taxes that it is reasonably believed are, or will become, payable in respect of (i) current net income, (ii) realized net gain on investments, and (iii) unrealized appreciation on investments. If the plan is not subject to Federal income taxes, a note shall so state indicating briefly the principal present assumptions on which the plan has relied in not making provision for such taxes.

(2) State the Federal income tax status of the employee with respect to the plan.

(d) Valuation of assets. The statement of financial condition shall reflect all assets either (1) at value, showing cost parenthetically, or (2) at cost, showing value parenthetically.

§210.6-32 Statements of financial condition.

Statements of financial condition filed under this rule shall comply with the following provisions:

Plan Assets

1. Investments in securities of participating employers. State separately each class of securities of the participating employer or employers.

2. Investments in securities of unaffiliated issuers.

(a) United States Government bonds and other obligations. Include only direct obligations of the United States Government.

(b) Other securities. State separately (1) marketable securities and (2) other securities.

3. Investments. Other than securities. State separately each major class.

4. Dividends and interest receivable. 5. Cash.

6. Other assets. State separately (a) total of amounts due from participating employers or any of their directors, officers and principal holders of equity securities; (b) total of amounts due from trustees or managers of the plan; and (c) any other significant amounts.

Liabilities and Plan Equity

7. Liabilities. State separately (a) total of amounts payable to participating employers; (b) total of amounts payable to participating employees; and (c) any other significant amounts.

8. Reserves and other credits. State separately each significant item and describe each such item by using an appropriate caption or by a footnote referred to in the caption.

9. Plan equity at close of period.

§ 210.6-33 Statements of income and changes in plan equity.

Statements of income and changes in pian equity filed under this rule shall comply with the following provisions:

1. Net investment income.

(a) Income. State separately income from (1) cash dividends; (2) interest, and (3) other sources. Income from investments in or indebtedness of participating employers shall be segregated under the appropriate subcaption.

(b) Expenses. State separately any significant amounts.

(c) Net investment income.

2. Realized gain or loss on investments. (a) State separately the net of gains or losses arising from transactions in (1) investments in securities of the participating employer or employers; (2) other investments in securities; and (3) other investments.

(b) State in a footnote or otherwise for each category of investment in paragraph (a) above the aggregate cost, the aggregate proceeds and the net gain or loss. State the principle followed in determining the cost of securities sold, e.g., "average cost" or "firstin, first-out."

3. Unrealized appreciation or depreciation of investments. (a) State the amount of increase or decrease in unrealized appreciation or depreciation of investments during the period.

(b) State in a footnote or otherwise the amount of unrealized appreciation or depreciation of investments at the beginning of the period of report, at the end of the period of report, and the increase or decrease during the period.

4. Contributions and deposits. (a) State separately (1) total of amounts deposited by participating employees, and (2) total of amounts contributed by the participating employer or employers.

(b) If employees of more than one employer participate in the plan, state in tabular form in a footnote or otherwise the amount contributed by each employer and the deposits of the employees of each such employer.

5. Withdrawals, lapses and forfeitures. State separately (a) balances of employees' accounts withdrawn, lapsed or forfeited during the period; (b) amounts disbursed in settlement of such accounts; and (c) disposition of balances remaining after settlement specified in (b).

6. Plan equity at beginning of period. 7. Plan equity at end of period.

§ 210.6-34 What schedules are to be filed. (a) Schedules I and II, specified below, shall be filed as of the date of each statement of financial condition filed. Schedule III shall be filed for each period for which a statement of income and changes in plan equity is filed. All schedules shall be certified if the related statements are certified.

(b) Reference to the schedules shall be made against the appropriate captions of the statements of financial condition and income and changes in plan equity.

Schedule I: Investments. A schedule substantially in form prescribed by § 210.12-19 shall be filed in support of captions 1, 2 and 3 of each statement of financial condition unless substantially all of the information is given in the statement of financial condition by footnote or otherwise.

Schedule II: Allocation of plan assets and liabilities to investment program. If the plan provides for separate investment programs with separate funds, and if the allocation of assets and liabilities to the several funds is not shown in the statement of financial condition in columnar form or by the submission of separate statements for each fund, a schedule shall be submitted showing the allocation of each caption of each statement of financial condition filed to the applicable fund.

Schedule III: Allocation of plan income and changes in plan equity to investment programs. If the plan provides for separate investment programs with separate funds, and if the allocation of income and changes in plan equity to the several funds is not shown in the statement of income and changes in plan equity in columnar form or by the submission of separate statements for each fund, a schedule shall be submitted showing the allocation of each caption of each statement of income and changes in plan equity filed to the applicable fund.

INSURANCE COMPANIES OTHER THAN LIFE AND TITLE INSURANCE COMPANIES (ARTICLE 7)

AUTHORITY: Secs. 6, 7, 8, 10, 12, 13, 15, 19, 23 (15 U.S.C. 77f, 77g, 77h, 77j, 77s, 781, 78m, 780(d), 78w, 79e, 79n, 79t, 80a-8, 800-29, 80a30(c), 80(a)).

SOURCE: Sections 210.7-01 to 210.7-06, 40 FR 55831, Dec. 2, 1975, unless otherwise noted.

§ 210.7-01 Application of §§ 210.7-01 to 210.7-06.

This article shall be applicable to financial statements filed for insurance companies other than life and title insurance companies. (Title insurance companies shall comply with the requirement of §§ 210.5-01-210.5-04.)

(a) If consolidated financial statements are prepared for an insurance holding company whose consolidated subsidiaries are primarily insurance companies other than life and title insurance companies, consideration shall be given to utilization of the format of the financial statements, notes and schedules prescribed in this article.

§ 210.7-02 General requirement.

(a) Financial statements filed for a person to which this article is applicable shall be prepared in accordance with generally accepted accounting principles except as otherwise provided in this article. The general rules in

§§ 210.1-01-210.1-02, 210.2-01210.2-05, 210.3-01-210.3-16 and 210.401-210.4-08 shall be applicable except where they differ from those prescribed in the special rules comprising this article.

(b) A person subject to this article may follow the rules and instructions governing the definition and computation of items in Annual Statements to the regulatory authority of its state of domicile (statutory accounting requirements) only if the statutes of that state prohibit the presentation of financial statements other than in accordance with such requirements. Financial statements which follow statutory accounting requirements shall be accompanied by corresponding financial statements prepared in accordance with generally accepted accounting principles.

(c) All financial statements prepared for persons to which this article is applicable shall include reconciliations of material differences between (a) surplus as regards policyholders as reported on the corresponding Annual Statement and stockholders' equity as determined in accordance with generally accepted accounting principles and (b) net income or loss as reported on the corresponding Annual Statement and net income or loss as deter

NOTES: (1) State the basis of determining the amounts shown in the balance sheet.

(2) State parenthetically for bonds and notes and preferred and common stocks either aggregate cost or aggregate value at the balance sheet date, whichever is the alternate to the amounts at which shown in the balance sheet. Consideration shall be given to the discussion of "Valuation of Securities" in Accounting Series Release No. 118 [35 FR 19986).

(3) State parenthetically accumulated depreciation and amortization deducted from investment real estate.

(4) Include under subcaption (g) share accounts in savings and loan associations, savings accounts, time deposits, certificates of deposits and other cash accounts and cash equivalents earning interest. State in a note any amounts subject to withdrawal or usage restrictions (see §§ 210.7-03-2 and 210.5-021).

(5) State separately any class of investments included in subcaption (f) exceeding five percent of total assets; however, if an amount to be reported under subcaption (f) or (g) is less than five percent of total assets it may be included under subcaption (f).

(6) State in a note the name of any person in which the total amount invested in the person and its affiliates, included in the above subcaptions, exceed two percent of total investments. For the purpose of this disclosure consider as the amount invested in a person and its affiliates the aggregate of indebtedness and stocks issued by such person and its affiliates which is included in the several subcaptions above, and the amount of any real estate included in subcaption (e) which was purchased or acquired from such person and its affiliates. Indicate the amount included in each subcaption. An investment in bonds and notes of the United States Government or of a Federal Government agency or authority which exceeds two percent of total investments need not be reported.

(7) Investments in unconsolidated subsidiaries and 50 percent or less owned persons (including partnerships) which are held for investment purposes may be included under an appropriate subcaption above. The related equity in earnings shall be included under § 210.7-04-2 and the amount of dividends or other distributions stated separately. Investments in unconsolidated entities held for operating purposes may not be so reported.

(8) State in a note any amounts included under subcaptions (a), (b), (d), (e), (f) and (g) which have been non-income producing for the six months preceding the balance sheet date.

2. Cash and cash items. -State separately (a) cash on hand and unrestricted demand deposits; (b) legally restricted deposits held as compensating balances against shortterm borrowing arrangements; (c) funds subject to repayment on call or immediately after the date of the balance sheet required to be filed; and (d) other funds, the amounts of which are known to be subject to withdrawal or usage restrictions, e.g., special purpose funds. The general terms and nature of such repayment provisions in (c) and withdrawal or usage restrictions in (b) or (d) shall be described in a note referred to herein (see § 210.5-02-1).

3. Investments in and indebtedness from affiliates and other persons. (a) Investments in and indebtedness from and to affiliates