§16-185-101 - Purpose and scope.

§16-185-101 Purpose and scope. (a) The purpose of this chapter is to improve the surveillance of the financial condition of insurers by requiring the following:

         (1) An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants;

         (2) Communication of internal control related matters noted in an audit; and

         (3) Management's report of internal control over financial reporting.

         (b) Every insurer shall be subject to this chapter.

         (c) A foreign or alien insurer filing the following documents in another state, pursuant to that state's requirement for filing of audited financial reports, is exempt from filing those reports in this State provided that the other state has substantially similar requirements to sections 16-185-103 through 16-185-112, Hawaii Administrative Rules, and those reports are filed with the commissioner of the other state within the time specified:

         (1) An audited financial report;

         (2) A communication of internal control related matters noted in an audit; and

         (3) An accountant's letter of qualifications.

         (d) Foreign or alien insurers required to file management's report of internal control over financial reporting in another state are exempt from filing the report in this State provided the other state has substantially similar reporting requirements in section 16-185-115, Hawaii Administrative Rules, and the report is filed with the commissioner of the other state within the time specified.

         (e) This chapter shall not prohibit, preclude, or in any way limit the commissioner from ordering, conducting, or performing examinations of insurers under the rules of the insurance division.

        [Eff 2/04/10; am and comp 12/30/19] (Auth: HRS §431:2-201) (Imp: HRS §§431:2-201, 431:3-302.5)

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