reglab/housing_qa huggingface dataset:
TX Ins Code § 401.008 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.008. Hardship Exemption

Sec. 401.008.  HARDSHIP EXEMPTION.  (a)  An insurer or health maintenance organization that is not eligible for an exemption under Section 401.006 or 401.007 may apply to the commissioner for a hardship exemption.(b)  Subject to Subsection (c), the commissioner may grant an exemption under this section if the commissioner finds, after reviewing the application, that compliance with this subchapter would constitute a severe financial or organizational hardship for the insurer or health maintenance organization.  The commissioner may grant the exemption at any time for one or more specified periods.(c)  The commissioner may not grant an exemption under this section if:(1)  the exemption would diminish the department's ability to monitor the financial condition of the insurer or health maintenance organization; or(2)  the insurer or health maintenance organization:(A)  during the five-year period preceding the date the application for the exemption is made:(i)  has been placed under supervision, conservatorship, or receivership;(ii)  has undergone a change in control, as described by Section 823.005; or(iii)  has been subject to a significant number of complaints, as determined by the commissioner;(B)  has been identified by the department as troubled;(C)  has been or is the subject of a disciplinary action by the department; or(D)  is not complying with the law or with a rule adopted by the commissioner.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.009 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.009. Contents of Audited Financial Report

Sec. 401.009.  CONTENTS OF AUDITED FINANCIAL REPORT.  (a)  An audited financial report required under Section 401.004 must:(1)  describe the financial condition of the insurer or health maintenance organization as of the end of the most recent calendar year and the results of the insurer's or health maintenance organization's operations, changes in financial position, and changes in capital and surplus for that year;(2)  conform to the statutory accounting practices prescribed or otherwise permitted by the insurance regulator in the insurer's or health maintenance organization's state of domicile; and(3)  include:(A)  the report of an accountant;(B)  a balance sheet that reports admitted assets, liabilities, capital, and surplus;(C)  a statement of gain or loss from operations;(D)  a statement of cash flows;(E)  a statement of changes in capital and surplus;(F)  any notes to financial statements;(G)  supplementary data and information, including any additional data or information required by the commissioner; and(H)  information required by the department to conduct the insurer's or health maintenance organization's examination under Subchapter B.(b)  The notes to financial statements required by Subsection (a)(3)(F) must include:(1)  a reconciliation of any differences between the audited statutory financial statements and the annual statements filed under this code, with a written description of the nature of those differences;(2)  any notes required by the appropriate National Association of Insurance Commissioners annual statement instructions or by generally accepted accounting principles;  and(3)  a summary of the ownership of the insurer or health maintenance organization and that entity's relationship to any affiliated company.(c)  An insurer or health maintenance organization required under Section 401.004 to file an audited financial report that does not retain an independent certified public accountant to perform an annual audit for the previous year may not be required to include in the report audited statements of operations, cash flows, or changes in capital and surplus for the first year.  The insurer or health maintenance organization must include those statements in the first-year report and label the statements as unaudited.  The insurer or health maintenance organization must include in the first-year report all other reports described by Section 401.004.(d)  The commissioner shall adopt rules governing the information to be included in the audited financial report under Subsection (a)(3)(H).|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.010 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.010. Requirements for Financial Statements in Audited Financial Report

Sec. 401.010.  REQUIREMENTS FOR FINANCIAL STATEMENTS IN AUDITED FINANCIAL REPORT.  (a)  An accountant must audit the financial reports provided by an insurer or health maintenance organization for purposes of an audit under this subchapter.  The accountant who audits the reports must conduct the audit in accordance with generally accepted auditing standards or with standards adopted by the Public Company Accounting Oversight Board, as applicable, and must consider the standards specified in the Financial Condition Examiner's Handbook adopted by the National Association of Insurance Commissioners or other analogous nationally recognized standards adopted by commissioner rule.(b)  The financial statements included in the audited financial report must be prepared in a form and using language and groupings substantially the same as those of the relevant sections of the insurer's or health maintenance organization's annual statement filed with the commissioner.  Beginning in the second year in which an insurer or health maintenance organization is required to file an audited financial report, the financial statements must also be comparative, presenting the amounts as of December 31 of the reported year and the amounts as of December 31 of the preceding year.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.Amended by: Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636), Sec. 3B.001(a), eff. September 1, 2007.Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 9.001(a), eff. September 1, 2007.|
TX Ins Code § 401.012 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.012. Hearing on Accountant Qualifications; Replacement of Accountant

Sec. 401.012.  HEARING ON ACCOUNTANT QUALIFICATIONS; REPLACEMENT OF ACCOUNTANT.  The commissioner may hold a hearing to determine if an accountant is qualified and independent.  If, after considering the evidence presented, the commissioner determines that an accountant is not qualified and independent for purposes of expressing an opinion on the financial statements in an audited financial report filed under this subchapter, the commissioner shall issue an order directing the insurer or health maintenance organization to replace the accountant with a qualified and independent accountant.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.013 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.013. Accountant's Letter of Qualifications

Sec. 401.013.  ACCOUNTANT'S LETTER OF QUALIFICATIONS.  (a)  The audited financial report required under Section 401.004 must be accompanied by a letter provided by the accountant who performed the audit stating:(1)  the accountant's general background and experience;(2)  the experience of each individual assigned to prepare the audit in auditing insurers or health maintenance organizations and whether the individual is an independent certified public accountant; and(3)  that the accountant:(A)  is properly licensed by an appropriate state licensing authority, is a member in good standing of the American Institute of Certified Public Accountants, and is otherwise qualified under Section 401.011;(B)  is independent from the insurer or health maintenance organization and conforms to the standards of the profession contained in the American Institute of Certified Public Accountants Code of Professional Conduct, the statements of that institute, and the rules of professional conduct adopted by the Texas State Board of Public Accountancy, or a similar code;(C)  understands that:(i)  the audited financial report and the accountant's opinion on the report will be filed in compliance with this subchapter; and(ii)  the commissioner will rely on the report and opinion in monitoring and regulating the insurer's or health maintenance organization's financial position; and(D)  consents to the requirements of Section 401.020 and agrees to make the accountant's work papers available for review by the department or the department's designee.(b)  Subsection (a)(2) does not prohibit an accountant from using any staff the accountant considers appropriate if use of that staff is consistent with generally accepted auditing standards.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.014 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.014. Registration of Accountant

Sec. 401.014.  REGISTRATION OF ACCOUNTANT.  (a)  Not later than December 31 of the calendar year to be covered by an audited financial report required by this subchapter, an insurer or health maintenance organization must register in writing with the commissioner the name and address of the accountant retained to prepare the report.(b)  The insurer or health maintenance organization must include with the registration a statement signed by the accountant:(1)  indicating that the accountant is aware of the requirements of this subchapter and of the rules of the insurance department of the insurer's or health maintenance organization's state of domicile that relate to accounting and financial matters; and(2)  affirming that the accountant will express the accountant's opinion on the financial statements in terms of the statements' conformity to the statutory accounting practices prescribed or otherwise permitted by the insurance department described by Subdivision (1) and specifying any exceptions the accountant believes are appropriate.(c)  The commissioner may not accept an audited financial report prepared by an accountant who is not registered under this section.(d)  The commissioner may not accept the registration of a person who does not qualify under Section 401.011 or does not comply with the other requirements of this subchapter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.015 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.015. Resignation or Dismissal of Accountant; Statement Concerning Disagreements

Sec. 401.015.  RESIGNATION OR DISMISSAL OF ACCOUNTANT; STATEMENT CONCERNING DISAGREEMENTS.  (a)  If an accountant who signed an audited financial report for an insurer or health maintenance organization resigns as accountant for the insurer or health maintenance organization or is dismissed by the insurer or health maintenance organization after the report is filed, the insurer or health maintenance organization shall notify the department not later than the fifth business day after the date of the resignation or dismissal.(b)  Not later than the 10th business day after the date the insurer or health maintenance organization notifies the department under Subsection (a), the insurer or health maintenance organization shall file a written statement with the commissioner advising the commissioner of any disagreements between the accountant and the insurer's or health maintenance organization's personnel responsible for presenting the insurer's or health maintenance organization's financial statements that:(1)  relate to accounting principles or practices, financial statement disclosure, or auditing scope or procedures;(2)  occurred during the 24 months preceding the date of the resignation or dismissal; and(3)  would have caused the accountant to note the disagreement in connection with the audited financial report if the disagreement were not resolved to the satisfaction of the accountant.(c)  The statement required by Subsection (b) must include a description of disagreements that were resolved to the accountant's satisfaction and those that were not resolved to the accountant's satisfaction.(d)  The insurer or health maintenance organization shall file with the statement required by Subsection (b) a letter signed by the accountant stating whether the accountant agrees with the insurer's or health maintenance organization's statement and, if not, the reasons why the accountant does not agree.  If the accountant fails to provide the letter, the insurer or health maintenance organization shall file with the commissioner a copy of a written request to the accountant for the letter.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.016 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.016. Audited Combined or Consolidated Financial Statements

Sec. 401.016.  AUDITED COMBINED OR CONSOLIDATED FINANCIAL STATEMENTS.  (a)  An insurer or health maintenance organization described by Section 401.001(3) or (4) that is required to file an audited financial report under this subchapter may apply in writing to the commissioner for approval to file audited combined or consolidated financial statements instead of separate audited financial reports if the insurer or health maintenance organization:(1)  is part of a group of insurers or health maintenance organizations that uses a pooling arrangement or 100 percent reinsurance agreement that affects the solvency and integrity of the insurer's or health maintenance organization's reserves; and(2)  cedes all of the insurer's or health maintenance organization's direct and assumed business to the pool.(b)  An insurer or health maintenance organization must file an application under Subsection (a) not later than December 31 of the calendar year for which the audited combined or consolidated financial statements are to be filed.(c)  An insurer or health maintenance organization that receives approval from the commissioner under this section shall file a columnar combining or consolidating worksheet for the audited combined or consolidated financial statements that includes:(1)  the amounts shown on the audited combined or consolidated financial statements;(2)  the amounts for each insurer or health maintenance organization stated separately;(3)  the noninsurance operations shown on a combined or individual basis;(4)  explanations of consolidating and eliminating entries; and(5)  a reconciliation of any differences between the amounts shown in the individual insurer or health maintenance organization columns of the worksheet and comparable amounts shown on the insurer's or health maintenance organization's annual statements.(d)  An insurer or health maintenance organization that does not receive approval from the commissioner to file audited combined or consolidated financial statements for the insurer or health maintenance organization and any of the insurer's or health maintenance organization's subsidiaries or affiliates shall file a separate audited financial report.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.017 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.017. Notice of Adverse Financial Condition or Misstatement of Financial Condition

Sec. 401.017.  NOTICE OF ADVERSE FINANCIAL CONDITION OR MISSTATEMENT OF FINANCIAL CONDITION.  (a)  An insurer or health maintenance organization required to file an audited financial report under this subchapter shall require the insurer's or health maintenance organization's accountant to immediately notify the board of directors of the insurer or health maintenance organization or the insurer's or health maintenance organization's audit committee in writing of any determination by that accountant that:(1)  the insurer or health maintenance organization has materially misstated the insurer's or health maintenance organization's financial condition as reported to the commissioner as of the balance sheet date being audited; or(2)  the insurer or health maintenance organization does not meet the minimum capital and surplus requirements prescribed by this code for the insurer or health maintenance organization as of that date.(b)  An insurer or health maintenance organization that receives a notice described by Subsection (a) shall:(1)  provide to the commissioner a copy of the notice not later than the fifth business day after the date the insurer or health maintenance organization receives the notice; and(2)  provide to the accountant evidence that the notice was provided to the commissioner.(c)  If the accountant does not receive the evidence required by Subsection (b)(2) on or before the fifth business day after the date the accountant notified the insurer or health maintenance organization under Subsection (a), the accountant shall file with the commissioner a copy of the accountant's written notice not later than the 10th business day after the date the accountant notified the insurer or health maintenance organization.(d)  An accountant is not liable to an insurer or health maintenance organization or the insurer's or health maintenance organization's policyholders, shareholders, officers, employees, directors, creditors, or affiliates for a statement made under this section if the statement was made in good faith to comply with this section.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.018 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.018. Information Discovered After Date of Audited Financial Report

Sec. 401.018.  INFORMATION DISCOVERED AFTER DATE OF AUDITED FINANCIAL REPORT.  If, after the date of an audited financial report filed under this subchapter, the accountant becomes aware of facts that might have affected the report, the accountant must take action as prescribed in Volume 1, AU Section 561, Professional Standards of the American Institute of Certified Public Accountants.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.019 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.019. Report on Significant Deficiencies in Internal Control

Sec. 401.019.  REPORT ON SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL.  (a)  In addition to the audited financial report required by this subchapter, each insurer or health maintenance organization shall provide to the commissioner a written report of significant deficiencies required and prepared by an accountant in accordance with the Professional Standards of the American Institute of Certified Public Accountants.(b)  The insurer or health maintenance organization shall annually file with the commissioner the report required by this section not later than the 60th day after the date the audited financial report is filed.  The insurer or health maintenance organization shall also provide a description of remedial actions taken or proposed to be taken to correct significant deficiencies, if the actions are not described in the accountant's report.(c)  The report must follow generally the form for communication of internal control structure matters noted in an audit described in Statement on Auditing Standard (SAS) No. 60, AU Section 325, Professional Standards of the American Institute of Certified Public Accountants.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|
TX Ins Code § 401.020 (2021)
2021 Texas Statutes|Insurance Code|Title 4 - Regulation of Solvency|Subtitle A - General Provisions|Chapter 401 - Audits and Examinations|Subchapter A. Independent Audit of Financial Statements|Section 401.020. Accountant Work Papers

Sec. 401.020.  ACCOUNTANT WORK PAPERS.  (a)  In this section, "work papers" means the records kept by an accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached that are pertinent to the accountant's audit of an insurer's or health maintenance organization's financial statements.  The term includes work programs, analyses, memoranda, letters of confirmation and representation, abstracts of company documents and schedules, and commentaries prepared or obtained by the accountant in the course of auditing the financial statements that support the accountant's opinion.(b)  An insurer or health maintenance organization required to file an audited financial report under this subchapter shall require the insurer's or health maintenance organization's accountant to make available for review by the department's examiners the work papers and any record of communications between the accountant and the insurer or health maintenance organization relating to the accountant's audit that were prepared in conducting the audit.  The insurer or health maintenance organization shall require that the accountant retain the work papers and records of communications until the earlier of:(1)  the date the department files a report on the examination covering the audit period; or(2)  the seventh anniversary of the date of the last day of the audit period.(c)  The department may copy and retain the copies of pertinent work papers when the department's examiners conduct a review under Subsection (b).  The review is considered an investigation, and work papers obtained during that investigation may be made confidential by the commissioner, unless the work papers are admitted as evidence in a hearing before a governmental agency or in a court.|Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.|