Sec. 3 AAC 21.705 - Annual audit of financial statements

ยง 3 AAC 21.705. Annual audit of financial statements

(a) Except as provided in (b) and (c) of this section, the filing requirement of AS 21.09.200(g) constitutes a financial or organizational hardship on an insurer, and the insurer is exempt from the filing requirement if

(1) direct premiums written in the state are less than $1,000,000 as reported in the most recent calendar year; and

(2) the number of policyholders or certificate holders of direct written policies nationwide at the end of the most recent calendar year is less than 1,000.

(b) An insurer having assumed premium under contracts or treaties of reinsurance of $1,000,000 or more as reported at the end of the most recent calendar year is not eligible for exemption under (a) of this section.

(c) Notwithstanding (a) of this section, the director may make a specific finding that the exemption is not available to an insurer because the filing is necessary to carry out the director's regulatory responsibility.

(d) A foreign or alien insurer filing an annual audited financial report with the insurance regulatory official of another state under that state's requirements that are substantially similar to the requirements of AS 21.09.200(g) is exempt from the filing requirements under AS 21.09.200(g) if a

(1) copy of the annual audited financial report, the report on unremediated material weaknesses in internal control over financial reporting, and the accountant's letter of qualifications are filed with the other state in accordance with the due dates under AS 21.09.200(g) and (h);

(2) Canadian insurer files the accountant's reports required by the Office of the Superintendent of Financial Institutions, Canada; and

(3) copy of any notification of adverse financial condition report filed with the other state is filed with the director in accordance with 3 AAC 21.735.

(Eff. 8/31/2008, Register 187; am 12/31/2010, Register 196)

Authority:AS 21.06.060

AS 21.06.090

AS 21.09.200

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