N.Y. ISC Law § 307 — New York Code / Act ISC / Article 3 / Section 307
Annual statements; audited financial statements
Status: in_force

§ 307. Annual statements; audited financial statements. (a) (1) Every\ninsurer and every fraternal benefit society that is authorized to do an\ninsurance business in this state, and every pension fund, retirement\nsystem or state fund that is required, by any law of this state, to\nreport to the superintendent or is subject to the superintendent's\nexamination, shall file in the office of the superintendent, annually on\nor before the first day of March, a statement, to be known as its annual\nstatement, executed in duplicate, verified by the oath of at least two\nof its principal officers, showing its condition at last year-end or, in\nthe case of a pension fund or retirement system, on such date in the\nyear next preceding as the superintendent may approve. Such statement\nshall be in such form and shall contain such matters as the\nsuperintendent shall prescribe. The superintendent may accept an\nelectronic filing of a foreign insurer's annual statement that does not\ncontain the signatures or verification of the officers provided that the\nforeign insurer has filed, in its state of domicile, an annual statement\nverified by the oath of at least two of its principal officers. In such\na situation, the officers of the foreign insurer shall be deemed to have\ngiven their oath in this state.\n  (2) The superintendent shall from time to time prescribe the form of\nsuch annual statement, which may be a printed document and/or electronic\nmedia, and which may be varied as to different types of insurers,\ncorporations, societies, pension funds and retirement systems, as shall\nseem to him best adapted to elicit a true exhibit of the condition of\neach such entity, in respect to every matter which he may deem material.\nFor every annual statement form which differs from or is in addition to\nthose adopted from time to time by the national association of insurance\ncommissioners, the superintendent shall cause to be prepared and\nfurnished to every insurer, pension fund or retirement system required\nby law to report to him, printed forms of the statements and schedules\nrequired by him.\n  (3) The annual statement of an alien insurer may be verified by the\noath of the manager or assistant manager thereof within the United\nStates, or by any other official of such insurer authorized by it to\nsign and verify its annual statements, if such authorization shall be\nproved by filing with the superintendent such evidence as he may\nrequire. The annual statement of an alien insurer, excepting a fraternal\nbenefit society, shall be a separate statement, to be known as its\ngeneral form of statement, of the business done within the United States\nand of the assets held by or for it within the United States for the\nprotection of policyholders and creditors within the United States and\nof the liabilities incurred against such assets, and shall not contain\nany statement in regard to its assets and business elsewhere. But the\nsuperintendent may require any such alien insurer to give such\nadditional information as to its total business or assets or any portion\nthereof as he may determine.\n  (4) Every insurer and every fraternal benefit society which is\nauthorized to do an insurance business in this state, and every pension\nfund, retirement system or state fund which is required by any law of\nthis state to report to the superintendent, which willfully fails to\nfile an annual statement as required in this section, or willfully fails\nto reply within thirty days to a written inquiry by the superintendent\nin connection therewith, shall, in addition to other penalties provided\nby this chapter, be subject, upon due notice and opportunity to be\nheard, to a penalty of up to two hundred fifty dollars per day of delay,\nnot to exceed twenty-five thousand dollars in the aggregate, for each\nsuch failure.\n  (b) (1) Every licensed insurer, except an assessment co-operative\nproperty/casualty insurance company having direct premiums written in\nthis state of less than two hundred fifty thousand dollars in any\ncalendar year and having less than five hundred policyholders at the end\nof such calendar year, shall be required to file within five months of\nthe end of such calendar year, an annual financial statement (including\nan annual financial statement of any subsidiary of the type described in\nparagraph nine of subsection (a) of section one thousand four hundred\nfour or subparagraph (B) of paragraph four of subsection (a) of section\none thousand four hundred seven of this chapter) together with an\nopinion thereon of an independent certified public accountant on the\nfinancial statement of such insurer and any such subsidiary, which\nstatement and opinion shall be available for public inspection at the\noffice of the superintendent and the principal office of the insurer.\nEach such insurer shall furnish the superintendent with an evaluation by\nsuch accountant of the accounting procedures and internal control\nsystems of the insurer that are necessary to the furnishing of the\nopinion. Each such insurer shall require the accountant to make\navailable for review by the superintendent the work papers and any\ncommunications between the accountant and the insurer relating to the\nexamination of the insurer. Any such work papers and communications made\navailable to the superintendent shall be kept confidential, shall not be\nsubject to subpoena and shall not be made public unless, after notice\nand opportunity to be heard, the superintendent determines that the\ninterests of policyholders, stockholders or the public will be served by\nthe publication thereof. Each such insurer shall require the accountant\nto notify the superintendent if the accountant has determined that the\ninsurer has materially misstated its financial condition as reported to\nthe superintendent or that the insurer does not meet minimum capital or\nsurplus to policyholder requirements.\n  (2) If the insurer is part of a group of insurance companies which\nutilizes a pooling agreement or one hundred percent reinsurance\nagreement that affects the solvency and integrity of such insurer's\nreserves and such insurer cedes all of its direct and assumed business\nto the pool, then such insurer may file audited consolidated or combined\nfinancial statements in lieu of separate annual audited financial\nstatements provided that a consolidating or combining exhibit be filed\nthat clearly reconciles amounts in the audited financial statement to\nthe individual company annual statements. In addition, an insurer may\ncomply by filing statements prepared in accordance with generally\naccepted accounting principles, provided that appropriate reconciliation\nis made of the differences between net income and capital and surplus\nreported on that basis and that reported in the annual statutory\nstatement filed with the superintendent.\n  (3) In lieu of the requirements of this subsection, the superintendent\nmay accept copies of filings of audited financial statements required by\nanother state where they are found to be substantially similar to the\nrequirements herein. Upon written application of any insurer, extensions\nof the filing date and exemptions from the filing requirements may be\ngranted by the superintendent, if the superintendent finds, upon review\nof the application, that compliance would constitute a financial or\norganizational hardship upon the insurer.\n