§ 24-A §221-A — Financial audit requirements

1.
Purpose.
The purpose of this section is to provide the superintendent with a means of improved financial monitoring of insurers doing business in this State. This mechanism of increased financial surveillance of insurers shall not be a substitute for financial examinations required or authorized by this Title generally.
2.
Definitions.
As used in the section, unless the context indicates otherwise, the following terms have the following meanings.
3.
Audits required.
All insurers, excepting insurers transacting business in this State pursuant to the terms of chapter 51, shall cause to be conducted an annual audit by an independent certified public accountant. Each domestic insurer shall file an audited financial report with the superintendent on or before June 1st for the year ending December 31st preceding. An extension of the filing deadline may be granted by the superintendent upon a showing by the insurer or its accountant that there exists valid justification for such an extension. A foreign or alien insurer shall file an audited financial report upon the superintendent's request. A firm of independent certified public accountants engaged to perform an audit of an insurer shall substitute the appointed audit partner in charge with another audit partner in charge at least once every 5 years. An accountant substituted for pursuant to this subsection may not serve as a partner in charge of that audit until 5 years after the date of substitution, unless the superintendent waives this requirement on the basis of unusual circumstances upon application by the insurer.
4.
Content of annual audited financial reporting.
Annual audited financial reporting must consist of the following.
5.
Rules authorized.
The superintendent shall promulgate such rules as shall be necessary to effectuate provisions of this section.
6.
Application and effective date.
For those insurers doing business in this State that are subject to this section, the filing of the initial annual audited financial reports required under this section are due June 30, 1986, covering the calendar year December 31, 1985. Similar recurring reports are due each June 1st thereafter.
7.
Exemptions.
Upon written application of any insurer subject to this section, the superintendent may grant an exemption of the filing requirements under this section if the superintendent finds upon review of the application that compliance would constitute a financial hardship upon the insurer.
8.
Required notice concerning adverse financial condition.
Each insurer retaining an independent certified public accountant to represent it with respect to the report which the insurer is required to file pursuant to this section shall, as a condition of its written terms of engagement of the accountant, require that:

Legislative History

PL 1985, c. 330, §1 (NEW). PL 1985, c. 636 (AMD). PL 1989, c. 846, §§C1,2,E4 (AMD). PL 1993, c. 313, §§5,6 (AMD). PL 1999, c. 113, §§5-7 (AMD). PL 2009, c. 511, Pt. A, §§1, 2 (AMD). RR 2021, c. 1, Pt. B, §165 (COR).