justicedao/ipfs_state_laws huggingface dataset:
836-011-0020 Definitions As used in OAR 836-011-0020 to 836-011-0024: (1) “Insurance group” means those insurers and affiliates included within an insurance holding company system as defined in ORS 732.548. (2) “Insurer” has the meaning given that term in ORS 731.106 but does not include an agency, authority or instrumentality of the United States, its possessions and territories, the Commonwealth of Puerto Rico, the District of Columbia, or another state or political subdivision of another state. (3) “Senior Management” means any corporate officer responsible for reporting information to the board of directors at regular intervals or providing this information to shareholders or regulators and shall include, for example and without limitation, the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), Chief Operations Officer (“COO”), Chief Procurement Officer (“CPO”), Chief Legal Officer (“CLO”), Chief Information Officer (“CIO”), Chief Technology Officer (“CTO”), Chief Revenue Officer (“CRO”), Chief Visionary Officer (“CVO”), or any other “C” level executive. Statutory/Other Authority: ORS 731.244 Statutes/Other Implemented: 2017 Oregon Laws, Chapter 479, Section 5 (Enrolled Senate Bill 97) History: ID 10-2017, adopt filed 11/22/2017, effective 01/01/2018
836-011-0030 Own Risk and Solvency Assessment (1) For the purpose of complying with ORS 732.650 to 732.672, every insurer, or insurance group of which the insurer is a member, shall use a process that is comparable to the process described in the December 2017 edition of the NAIC Own Risk and Solvency Assessment (ORSA) Guidance Manual. (2) Every insurer required to submit an “Own Risk” and “Solvency Assessment" summary report or combination of reports without waiting for a request from the director of the Department of Consumer and Business Services shall submit this information to the director each year in accordance with the schedule established by the director and the insurer. (3) The NAIC Own Risk and Solvency Assessment (ORSA) Guidance Manual referred to in this rule is available for inspection at the Department of Consumer and Business Services. Statutory/Other Authority: ORS 731.244, ORS 732.650 & 732.662 Statutes/Other Implemented: ORS 732.650 & 732.662 History: ID 11-2019, amend filed 12/19/2019, effective 01/01/2020 ID 11-2016, f. & cert. ef. 12-21-16
836-011-0100 Authority; Purpose; Scope (1) OAR 836-011-0100 to 836-011-0230 are adopted by the Director pursuant to ORS 731.488. The purpose of OAR 836-011-0100 to 836-011-0230 is to improve the Director's surveillance of the financial condition of insurers by requiring the following: (a) An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants; (b) Communication of Internal Control Related Matters Noted in an Audit; and (c) Management’s Report of Internal Control over Financial Reporting. (2) OAR 836-011-0100 to 836-011-0230 apply to every authorized insurer, subject to exemptions in 836-011-0130. (3) OAR 836-011-0100 to 836-011-0230 do not limit the Director's authority to order, conduct or perform examinations of insurers under the Insurance Code. Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0120 Filing and Extensions for Filing of Annual Audited Financial Reports (1) All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the Director on or before June 1 for the year ended December 31 immediately preceding. The Director may require an insurer to file an audited financial report earlier than June 1 with advance notice of 90 days to the insurer. (2) Extensions of the June 1 filing date may be granted by the Director for 30-day periods upon a showing by the insurer and its independent certified public accountant of the reasons for requesting an extension and determination by the Director of good cause for an extension. The request for extension must be submitted in writing not less than 10 days prior to the due date in sufficient detail to permit the Director to make an informed decision with respect to the requested extension. (3) If an extension is granted in accordance with section (2) of this rule, a similar extension of 30 days is granted to the filing of Management’s Report of Internal Control over Financial Reporting. (4) Every insurer required to file an annual audited financial report pursuant to OAR 836-011-0100 to 836-011-0230 shall designate a group of individuals as constituting its audit committee, as defined in 836-011-0110. The audit committee of an entity that controls an insurer may be designated as the insurer’s audit committee for purposes of 836-011-0100 to 836-011-0230 at the election of the controlling person. Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0130 Exemptions (1) The following authorized insurers are exempt from the requirements of OAR 836-011-0100 to 836-011-0230: (a) An insurer having direct premiums written in this state of less than $1,000,000 in any calendar year and having fewer than 1,000 policyholders or certificate holders of directly written policies nationwide at the end of the same calendar year is exempt from OAR 836-011-0100 to 836-011-0230 for the year unless the Director determines with respect to the insurer that compliance is necessary for the Director to carry out statutory responsibilities. The exemption under this subsection does not apply to any insurer that has assumed premiums pursuant to contracts or treaties of reinsurance, or both, of $1,000,000 or more. (b) A foreign or alien insurer that has filed the audited financial report in another state pursuant to the other State's requirement of audited financial reports, if the Director determines that the other state's requirements are substantially similar to the requirements of OAR 836-011-0100 to 836-011-0230 and if the foreign or alien insurer does both of the following: (A) Files with the Director a copy of the Audited Financial Report, the Communication of Internal Control Related Matters Noted in an Audit and the Accountant's Letter of Qualifications that are filed with the other state, in accordance with the filing dates specified in OAR 836-011-0120, 836-011-0200, and 836-011-0210. In lieu of the requirements of this paragraph, a Canadian insurer may file accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada. (B) Files with the Director a copy of any Notification of Adverse Financial Condition Report filed with the other state. The copy must be filed with the Director within the time specified in OAR 836-011-0190. (c) An insurer to whom the Director has granted an exemption under section (2) of this rule, during the period in which the exemption is effective. (d) A foreign or alien insurer required to file Management’s Report of Internal Control over Financial Reporting in another state is exempt from filing the Report in this state if the other state has substantially similar reporting requirements and the Report is filed with the insurance commissioner of the other state within the time specified. (2) Upon written application of any insurer, the Director may grant an exemption from compliance with one or more provisions of OAR 836-011-0100 to 836-011-0230 if the Director finds upon review of the application that compliance would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. Not later than the 10th day after denial of an insurer's written request for an exemption under this section, the insurer may request in writing a hearing on its application for an exemption. Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0140 Contents of Annual Audited Financial Report (1) An annual audited financial report required under OAR 836-011-0120 must report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for the year then ended in conformity with statutory accounting practices prescribed or otherwise permitted by the Department of Insurance of the state of domicile. (2) The annual audited financial report shall include the following: (a) A report of an independent certified public accountant; (b) A balance sheet reporting admitted assets, liabilities and capital and surplus; (c) A statement of operations; (d) A statement of cash flow; (e) A statement of changes in capital and surplus; and (f) Notes to financial statements. The notes shall be those required by the appropriate National Association of Insurance Commissioners (NAIC) Annual Statement Instructions and the NAIC Accounting Practices and Procedures Manual. The notes shall include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to ORS 731.574, with a written description of the nature of the differences. (3) The financial statements included in the audited financial report shall be prepared in a form and using language and groupings substantially the same as the relevant sections of the annual statement of the insurer filed with the Director. The financial statement shall be comparative, presenting the amounts as of December 31 of the current year and the amounts as of the immediately preceding December 31. However, in the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted. Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0170 Consolidated or Combined Audits An insurer may apply in writing to the Director for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurers that uses a pooling or one hundred percent reinsurance agreement affecting the solvency and integrity of the insurer's reserves and if the insurer cedes all of its direct and assumed business to the pool. In such a case, a columnar consolidating or combining worksheet shall be filed with the report as follows: (1) Amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet. (2) Amounts for each insurer subject to this rule shall be stated separately. (3) Noninsurance operations may be shown on the worksheet on a combined or individual basis. (4) Explanations of consolidating and eliminating entries shall be included. (5) A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers. Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488(2)(a) History: ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0180 Scope of Audit and Report of Independent Certified Public Accountant Financial statements furnished pursuant to OAR 836-011-0140 shall be audited by an independent certified public accountant. The audit of the insurer's financial statements must be conducted in accordance with generally accepted auditing standards. In accordance with AU Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit, the independent certified public accountant shall obtain an understanding of internal control sufficient to plan the audit. To the extent required by AU 319, for those insurers required to file a Management’s Report of Internal Control over Financial Reporting pursuant to 836-011-0227, the independent certified public accountant shall consider (as that term is defined in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards or its replacement) the most recently available report in planning and performing the audit of the statutory financial statements. Consideration shall also be given to other procedures illustrated in the Financial Condition Examiner's Handbook promulgated by the National Association of Insurance Commissioners as the certified public accountant determines to be necessary. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0190 Notification of Adverse Financial Condition (1) An insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report in writing to the board of directors or its audit committee any determination by the independent certified public accountant that the insurer has materially misstated its financial condition as reported to the Director as of the date of the balance sheet currently under audit or that the insurer does not meet the minimum capital and surplus requirement of the Oregon Insurance Code as of that date. The insurer shall require the independent certified public accountant to submit the report not later than the fifth business day after the independent certified public accountant makes such a determination. An insurer that has received a report under this section shall forward a copy of the report to the Director not later than the fifth business day after receiving the report and shall provide the independent certified public accountant with evidence that the report was furnished to the Director. If the independent certified public accountant does not receive the evidence within the required period, the independent certified public accountant shall furnish to the Director a copy of its report not later than the fifth business day after the end of the period within which the insurer was required to submit the report. (2) An independent certified public accountant shall not be liable to any person for any statement made in connection with the requirements of section (1) of this rule if the statement is made in good faith and in compliance with section (1) of this rule. (3) If the accountant, after the date of the audited financial report filed pursuant to OAR 836-011-0100 to 836-011-0230, becomes aware of facts that might have affected the report, the Director notes the obligation of the accountant to act as prescribed in Volume 1, Section AU 561 of the Professional Standards of the American Institute of Certified Public Accountants (AICPA). [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0200 Communication of Internal Control Related Matters Noted in an Audit (1) In addition to the annual audited financial report, each insurer shall furnish the Director with a written communication as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit. The communication must be prepared by the accountant not later than the 60th day after the filing of the annual audited financial report and shall contain a description of any unremediated material weakness (as the term material weakness is defined by Statement on Auditing Standard 60, Communication of Internal Control Related Matters Noted in an Audit, or its replacement) as of December 31 immediately preceding (so as to coincide with the audited financial report required by OAR 836-011-0120(1)) in the insurer’s internal control over financial reporting noted by the accountant during the course of their audit of the financial statements. If no unremediated material weaknesses were noted, the communication must so state. (2) The insurer shall submit with the report required under section (1) of this rule a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's report. (3) The insurer shall maintain information about significant deficiencies communicated by the independent certified public accountant. The information must be made available to the examiner conducting a financial condition examination for review and kept in such a manner as to remain confidential. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0210 Accountant’s Letter of Qualifications (1) An accountant shall furnish the insurer, in connection with and for inclusion in the filing of the annual audited financial report, a letter stating: (a) That the accountant is independent with respect to the insurer and conforms to the standards of the accounting profession as contained in the Code of Professional Ethics and pronouncements of the American Institute of Certified Public Accountants (AICPA) and the Rules of Professional Conduct of the Oregon State Board of Accountancy, or a similar code of conduct of the state board regulating the practice of accountancy in the state in which the accountant is licensed to practice. (b) The background and experience in general, and the experience in audits of insurers, of the staff assigned to the engagement and whether each is an independent certified public accountant. (c) That the accountant understands that the annual audited financial report and the opinion of the accountant thereon must be filed in compliance with OAR 836-011-0100 to 836-011-0230 and that the Director will rely on the information contained in the report and opinion in the monitoring and regulation of the financial position of insurers. (d) That the accountant consents to the requirements of OAR 836-011-220 and that the accountant agrees to make the workpapers described in 836-011-0220 available for review by the Director, or the Director's designee or appointed agent. (e) A representation that the accountant is currently licensed by an appropriate state licensing authority and is a member in good standing in the American Institute of Certified Public Accountants. (f) A representation that the accountant is in compliance with OAR 836-011-0160. (2) This rule does not prohibit an independent certified public accountant from using such staff as the accountant determines appropriate when use of the staff is consistent with the standards prescribed by generally accepted auditing standards. Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92
836-011-0220 Definition, Availability and Maintenance of Independent Certified Public Accountants Workpapers (1) For the purpose of this rule, workpapers are the records kept by an independent certified public accountant of the procedures followed, the tests performed, the information obtained and the conclusions reached pertinent to the accountant’s audit of the financial statements of an insurer. Accordingly, workpapers may include audit planning documentation, work programs, analyses, memoranda, letters of confirmation and representation, abstracts of company documents and schedules or commentaries prepared or obtained by the independent certified public accountant in the course of the accountant’s audit of the financial statements of an insurer and which support the accountant’s opinion. (2) An insurer that is required to file an audited financial report pursuant to OAR 836-011-0100 to 836-011-0230 shall require the accountant to make available for review by Department of Consumer and Business Service examiners, all workpapers prepared in the conduct of the accountant’s audit and any communications related to the audit between the accountant and the insurer, at the offices of the insurer, at the Department or at any other reasonable place designated by the Director. The insurer shall require that the accountant retain the audit workpapers and communications until the Department has filed a report on examination covering the period of the audit but no longer than seven years from the date of the audit report. (3) In the conduct of a periodic review by the Department examiners, it shall be agreed that photocopies of pertinent audit workpapers may be made and retained by the Department. Any such review by the Department examiners is an investigation and all working papers and communications obtained during the course of such an investigation must be given the same confidentiality as other examination workpapers generated by the Department. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 731.244 & 731.488 Statutes/Other Implemented: ORS 731.488 History: ID 11-2008, f. & cert. ef. 7-29-08 ID 9-2008, f. 6-30-08, cert. ef. 7-1-08 ID 22-2002, f. & cert. ef. 11-27-02 ID 4-1992, f. & cert. ef. 3-26-92