California Code of Regulations
Title 10 - Investment
Chapter 5 - Insurance Commissioner
Subchapter 3 - Insurers
Article 3.3 - Annual Financial Reporting
Section 2309.17 - Exemptions Due to Financial or Organizational Hardship; Effective Dates

(a) Upon written application of any insurer, the commissioner may grant an exemption from compliance with any and all provisions of these regulations if the commissioner finds, upon review of the application, that compliance with these regulations would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. Within ten (10) days from a denial of an insurer's written request for an exemption from these regulations, the insurer may request in writing a hearing on its application for an exemption.

(b) Domestic insurers that have retained a certified public accountant on the effective date of these regulations who qualifies as independent shall comply with these regulations for the year ending December 31, 2010 and each year thereafter unless the commissioner permits otherwise.

(c) Domestic insurers that have not retained a certified public accountant on the effective date of these regulations who qualifies as independent shall meet the following schedule for compliance unless the commissioner permits otherwise.

(d) Foreign insurers shall comply with these regulations for the year ending December 31, 2010 and each year thereafter, unless the commissioner permits otherwise.

(e) The requirements of Section 2309.7(d) shall be in effect for audits of the year beginning January 1, 2010 and thereafter.

(f) The requirements of Section 2309.14 are to be in effect January 1, 2010. An insurer or group of insurers that is not required to have independent Audit Committee members or only a majority of independent Audit Committee members (as opposed to a supermajority) because the total written and assumed premium is below the threshold and subsequently becomes subject to one of the independence requirements due to changes in premium shall have one (1) year following the year the threshold is exceeded (but not earlier than January 1, 2010) to comply with the independence requirements. Likewise, an insurer that becomes subject to one of the independence requirement as a result of a business combination shall have one (1) calendar year following the date of acquisition or combination to comply with the independence requirements.

(g) The requirements of Section 2309.16, except for Section 2309.14 covered above, are effective beginning with the reporting period ending December 31, 2010 and each year thereafter. An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold and subsequently becomes subject to the reporting requirements shall have two (2) years following the year the threshold is exceeded (but not earlier than December 31, 2010) to file a report. Likewise, an insurer acquired in a business combination shall have two (2) calendar years following the date of acquisition or combination to comply with the reporting requirements.