(a) Sections
38a-54-1 to
38a-54-14,
inclusive, of the Regulations of Connecticut State Agencies are intended to
improve the Insurance Department's surveillance of the financial condition of
insurance companies, health care centers and fraternal benefit societies doing
business in the State of Connecticut by requiring (1) an annual audit of
financial statements reporting the financial position and the results of
operations of insurers by independent certified public accountants, (2) a
Communication of Internal Control Related Matters Noted in an Audit, and (3) a
Management's Report of Internal Control Over Financial Reporting.
(b)
(1)
Every insurer as defined in Section
38a-54-2 of the
Regulations of Connecticut State Agencies shall be subject to the requirements
of Sections 38a-54-1 to
38a-54-14,
inclusive, of the Regulations of Connecticut State Agencies. Insurers having
direct premiums written in this state of less than $1,000,000 in any year and
having less than 1,000 policyholders or certificateholders of directly written
policies nationwide at the end of any year are exempt from Sections 38a-54-1 to
38a-54-14,
inclusive, of the Regulations of Connecticut State Agencies for such year,
unless the Commissioner makes a specific finding that compliance is necessary
for the Commissioner to carry out statutory responsibilities, except that
insurers having assumed premiums pursuant to contracts and/or treaties of
reinsurance of $1,000,000 or more shall not be so exempt.
(2) Foreign and alien insurers filing the
audited financial reports in another state, pursuant to that state's
requirement for filing of audited financial reports which has been found by the
Commissioner to be substantially similar to the requirements herein, are exempt
from Sections 38a-54-1 to
38a-54-14,
inclusive, of the Regulations of Connecticut State Agencies if:
(A) a copy of the audited financial report,
Communication of Internal Control Related Matters Noted in an Audit, and the
Accountant's Letter of Qualifications, which are filed with such other state,
are filed with the Commissioner in accordance with the filing dates specified
in Sections
38a-54-3,
38a-54-9
a and 38a-54-10, respectively, of the Regulations of Connecticut State Agencies
(Canadian insurers may submit accountants' reports as filed with the Office of
the Superintendent of Financial Institutions, Canada); and
(B) a copy of any Notification of Adverse
Financial Condition Report filed with such other state is filed with the
Commissioner within the time specified in Section
38a-54-9
of the Regulations of Connecticut State Agencies.
(C) Foreign or alien insurers required to
file a Management's Report of Internal Control Over Financial Reporting in
another state are exempt from filing such Report in this state provided the
other state has substantially similar reporting requirements and the report is
filed with the Commissioner of the other state within the time specified by the
other state.
(c) Sections 38a-54-1 to
38a-54-14,
inclusive, of the Regulations of Connecticut State Agencies shall not prohibit,
preclude or in any way limit the Insurance Commissioner from ordering and/or
conducting and/or performing examinations of insurers under the General
Statutes, Regulations and procedures of the Connecticut Insurance
Department.
