Alaska Administrative Code
Title 3 - Commerce, Community, and Economic Development
Part 2 - Division of Insurance
Chapter 21 - Insurer - Financial
Article 7 - Financial Examination of and Annual Audit Reporting Requirements for Admitted Insurers
3 AAC 21.799 - Definitions

Universal Citation: 3 AK Admin Code 21.799

Current through February 24, 2025

In 3 AAC 21.705 - 3 AAC 21.799, unless the context requires otherwise,

(1) "accountant" or "independent certified public accountant" means an independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accountants and in all states in which the accountant is licensed to practice; for a Canadian or British company, "accountant" or "independent certified public accountant" means a Canadian-chartered or British-chartered accountant;

(2) "group of insurers" means those authorized insurers included in the reporting requirements of AS 21.22, or a subset of those insurers as identified by company management for the purpose of assessing the effectiveness of internal control over financial reporting;

(3) "insurer" means an authorized insurer as defined in AS 21.97.900;

(4) "material weakness" has the meaning given in the American Institute of Certified Public Accountants' AU Section 325: Communicating Internal Control Related Matters Identified in an Audit; the definition of "material weakness" in the American Institute of Certified Public Accountants' AU Section 325: Communicating Internal Control Related Matters Identified in an Audit, dated July 7, 2007, is adopted by reference;

(5) "SOX compliant entity" means an entity that is voluntarily or required to be compliant with the

(A) preapproval requirements of 15 U.S.C. 78 j - 1(i) (sec. 10A(i) of the Securities Exchange Act of 1934, as added by sec. 202 of the Sarbanes-Oxley Act of 2002 (SOX));

(B) audit committee independence requirements of 15 U.S.C. 78 j - 1(m)(3) (sec. 10A(m)(3) of the Securities Exchange Act of 1934, as added by sec. 301 of the Sarbanes-Oxley Act of 2002 (SOX)); and

(C) internal control over financial reporting requirements of 15 U.S.C. 7262 (sec. 404 of the Sarbanes-Oxley Act of 2002 (SOX)) and 17 C.F.R. 229.308 (item 308 of Securities Exchange Commission Regulation S-K);

(6) "working day" means a calendar day other than Saturday, Sunday, an official federal holiday, or an official holiday in this state;

(7) "affiliate" or "affiliated" has the meaning given in AS 21.22.200;

(8) "audit committee" means a committee established by the governing board of an entity for the purpose of overseeing the

(A) accounting and financial reporting processes of an insurer or group of insurers;

(B) external audits of financial statements of an insurer or group of insurers; and

(C) the internal audit function of an insurer or group of insurers, if applicable.

(9) "control," "controlling," "controlled by," and "under common control with," when used with respect to control of an insurer, has the meaning given in AS 21.22.200;

(10) "internal control over financial reporting"

(A) means a process effected by an entity's governing board, management, and other personnel designed to provide reasonable assurance regarding the reliability of the financial statements;

(B) includes those policies and procedures that
(i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of assets;

(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements, including assurance that receipts and expenditures are being made only in accordance with authorization of management and directors; and

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of assets that could have a material effect on the financial statements;

(11) "Section 404 report" means the report from management of internal control over financial reporting and the related attestation report of the independent certified public accountant filed under 15 U.S.C. 7262 (sec. 404 of the Sarbanes-Oxley Act of 2002 (SOX)) and 17 C.F.R. 229.308 (item 308 of Securities Exchange Commission Regulation S-K).

(12) "internal audit function" means a person or persons that provide independent, objective and reasonable assurance designed to add value and improve an organization's operations and accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes;

(13) "insurance group means those insurers and affiliates included within an insurance holding company system as defined in AS 21.22.200(6);

(!4) senior management" means any corporate officer responsible for reporting information to the board of directors at regular intervals or providing this information to shareholders or regulators and shall include, for example and without limitation, the chief executive officer ("CEO"), chief financial officer ("CFO"), chief operations officer ("COO"), chief procurement officer ("CPO"), chief legal officer ("CLO"), chief information officer ("CIO"), chief technology officer ("CTO"), chief revenue officer ("CRO"), chief visionary officer ("CVO"), or any other "C" level executive.

Authority:AS 21.06.060

AS 21.06.090

AS 21.09.200

AS 21.09.400

AS 21.09.410

AS 21.09.420

AS 21.09.430

Disclaimer: These regulations may not be the most recent version. Alaska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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