§ 23-63-612 — Purpose - Compliance date

(a) It is the intention of this act to allow the Insurance Commissioner to adopt rules to modernize and harmonize the financial accounting laws of this state governing assets and liabilities of domestic reporting entities as defined. This act requires domestic health maintenance organizations, domestic title insurers, and other types of domestic licensees to modernize financial accounting methods in order to comply with laws and rules of the state applicable to domestic insurance companies and reporting entities. The provisions of this act are designed to allow domestic licensees to compete in the financial and insurance markets with changing federal and state laws, particularly those dealing with the treatment of assets, liabilities, and financial accounting. (b) The provisions of this act are intended to and shall govern the financial reports for the year 2001 of domestic reporting entities and shall govern the annual report for the year 2001 of domestic reporting entities due at the State Insurance Department on and after March 1, 2002, and supported by quarterly reports of 2001 for the first three (3) quarters. The provisions of this act shall govern as to all quarterly and annual financial reports due in subsequent reporting periods. (c) This act shall govern: (1) Domestic stock and mutual insurers; (2) Domestic reciprocal and stipulated premium plan insurers; (3) Domestic mutual assessment life and disability insurers; (4) Domestic farmers' mutual aid associations or companies; (5) Domestic title insurers; (6) Domestic health maintenance organizations; (7) Domestic hospital or medical service organizations; (8) Domestic licensed casualty insurers transacting business as a risk retention group; or (9) Other domestic reporting entities as used in this act. (d) Provided, however, if the immediate application of this act would have the effect of reducing any domestic reporting entity's statutory surplus, whether due to the nonadmission or reduction in admissible value of any then-existing asset or an increase in its then-existing liabilities or other changes, the domestic reporting entity may continue to reflect such assets and liabilities on its statutory financial statements as they could have been reflected but for the enactment of this act until the annual statement filing for the year ending December 31, 2004.

Legislative History

Acts 1959, No. 148, § 95; A.S.A. 1947, § 66-2514; Acts 1995, No. 1272, § 14; 2001, No. 1566, § 10.