Current through Register Vol. 48, No. 12, March 22, 2024
a) The annual audited financial report shall
report the financial position of the insurer as of the end of the most recent
calendar year and the results of its operations, cash flows and changes in
capital and surplus for the report year in conformity with statutory accounting
practices for preparation of the annual statement as described in Section 136
of the Code, or as otherwise permitted by the insurance regulatory authority of
the insurer's state of domicile.
b)
The annual audited financial report shall include the following:
1) Report of the independent certified public
accountant.
2) Balance sheet
reporting admitted assets, liabilities, capital and surplus or net
worth.
3) Statement of operations
or statement of revenues and expenses and net worth.
4) Statement of cash flows.
5) Statement of changes in capital and
surplus or net worth.
6) Notes to
financial statements. These notes shall be those required by the appropriate
NAIC Annual Statement Instructions and the NAIC Accounting Practices and
Procedures Manual, pursuant to Section 136 of the Code.
The notes shall include a reconciliation with a written
description of differences, if any, between the annual audited financial report
and the annual statement filed pursuant to Section 136 of the
Code.
7) The financial
statements included in the annual audited financial report shall be prepared in
a format using language and groupings substantially the same as the relevant
sections of the annual statement of the insurer filed with the Director and:
A) The financial statements shall be
comparative, presenting the amounts as of December 31 of the current year and
the amounts as of the immediately preceding December 31. (However, in the first
year in which an insurer is required to file an annual audited financial
report, the comparative data may be omitted.)
B) Amounts may be rounded to the nearest
thousand dollars.
8)
Supplementary Data and Information. This shall include any additional
clarifying information or data which the Director may require to be
disclosed.
