Utah Admin. Code R590-254-2 - Purpose and Scope
(1) The purpose of
this rule is to improve the commissioner's surveillance of the financial
condition of insurers by requiring the submission of the following reports and
documents:
(a) an annual audit of financial
statements reporting the financial position and the results of operations of an
insurer by an independent certified public accountant;
(b) Communication of Internal Control Related
Matters Noted in an Audit; and
(c)
management's Report of Internal Control over Financial Reporting.
(2) This rule applies to an
insurer, as defined in Section
R590-254-3.
(3) An insurer is exempt from this rule for
the calendar year if an insurer:
(a) has
direct written premium of less than $1,000,000 written in this state in any
calendar year; and
(b) less than
1,000 policyholders or certificate holders of direct written policies
nationwide at the end of the calendar year.
(4) The exemption under Subsection (3)
applies unless:
(a) the commissioner makes a
specific finding that compliance is necessary for the commissioner to carry out
statutory responsibilities; or
(b)
the insurer has assumed premiums pursuant to contracts and treaties, or both,
of reinsurance of $1,000,000 or more.
(5) A foreign or alien insurer filing an
audited financial report in another state, pursuant to that state's requirement
for filing of audited financial reports, which has been found by the
commissioner to be substantially similar to the requirements in this rule, is
exempt from Sections R590-254-4 through
R590-254-13 if:
(a) a copy of the audited financial report,
Communication of Internal Control Related Matters Noted in an Audit, and the
Accountant's Letter of Qualifications that are filed with the other state are
filed with the commissioner in accordance with the filing dates specified in
Sections R590-254-4,
R590-254-11, and
R590-254-12, respectively;
or
(b) a Canadian insurer may
submit accountants' reports as filed with the Office of the Superintendent of
Financial Institutions, Canada; and
(c) a copy of any Notification of Adverse
Financial Condition Report filed with the other state is filed with the
commissioner within the time specified in Section
R590-254-10.
(6) A foreign or alien insurer
required to file a Management's Report of Internal Control over Financial
Reporting in another state is exempt from filing the Report in this state
provided the other state has:
(a)
substantially similar reporting requirements; and
(b) the report is filed with the commissioner
of the other state within the time specified.
(7) This rule may not prohibit, preclude, or
in any way limit the commissioner from ordering, conducting, or performing
examinations of insurers under the rules, practices, and procedures of the
department.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.