reglab/housing_qa huggingface dataset:
V.I. Code tit. 22, § 625 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 625. Contents of annual audited financial report

 (a) The annual audited financial report must state 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/territory of domicile. (b) The annual audited financial report must include the following: (1) Report of independent certified public accountant; (2) Balance sheet reporting admitted assets, liabilities, capital and surplus; (3) Statement of operations: (4) Statement of cash flow; (5) Statement of changes in capital and surplus; (6) Notes to financial statements that, are required by the appropriate NAIC Annual Statement Instructions and the NAIC Accounting Practices and Procedures Manual and must include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to section 222 of this title, with a written description of the nature of these differences; and (7) The financial statements included in the audited financial report must 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 Commissioner, and the financial statement must be comparative, presenting the amounts as of December 31 of the current year and the amounts as of the immediately preceding December 31. In the discretion of the Commissioner, the comparative data may be omitted in the first year in which an insurer is required to file an audited financial report.
V.I. Code tit. 22, § 626 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 626. Designation of independent certified public accountant

 (a) Each insurer required by this chapter to file an annual audited financial report must, no later than 60 days after becoming subject to the requirement, register with the Commissioner in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit set forth in this chapter. Insurers not retaining an independent certified public accountant on the effective date of this chapter shall register the name and address of their retained independent certified public accountant not less than six months before the date when the first audited financial report is to be filed. (b) The insurer shall obtain a letter from the accountant, and file a copy with the Commissioner stating that the accountant is aware of the provisions of the insurance code and the regulations of the insurance department of the state of domicile that relate to accounting and financial matters and affirming that the accountant will express an opinion on the financial statements in terms of their conformity to the statutory accounting practices prescribed or otherwise permitted by that insurance department, specifying such exceptions as the accountant may believe appropriate. (c) If an accountant who was the accountant for the immediately preceding filed audited financial report is dismissed or resigns, the insurer has five business days to notify the Commissioner of this event. The insurer shall also furnish the Commissioner with a separate letter no later than 10 business days of the above notification stating whether in the 24 months preceding the event if there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure; which disagreements, if not resolved to the satisfaction of the former accountant, would have caused the former accountant to make reference to the subject matter of the disagreement in connection with the former accountant’s opinion. The disagreements required to be reported in response to this subsection include both those resolved to the former accountant’s satisfaction and those not resolved to the former accountant’s satisfaction. Disagreements contemplated by this subsection are those that occur at the decision-making level, i.e., between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report. The insurer shall also in writing request the former accountant to furnish a letter addressed to the insurer stating whether the accountant agrees with the statements contained in the insurer’s letter and, if not, stating the reasons for which the former accountant does not agree; and the insurer shall furnish the responsive letter from the former accountant to the Commissioner together with its own.
V.I. Code tit. 22, § 628 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 628. Consolidated or combined audits

 An insurer may make a written application to the Commissioner 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 insurance companies that utilizes a pooling or 100 percent reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer cedes all of its direct and assumed business to the pool. In such cases, a columnar consolidating or combining worksheet must be filed with the report, as follows: (1) Amounts shown on the consolidated or combined audited financial report must be shown on the worksheet; (2) Amounts for each insurer subject to this subsection must 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 must be included; and (5) A reconciliation must 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.
V.I. Code tit. 22, § 629 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 629. Scope of audit and report of independent certified public accountant

 Financial statements furnished pursuant to section 625 must be examined by the 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 section 2637, 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 must be given to the procedures illustrated in the Financial Condition Examiners Handbook promulgated by the National Association of Insurance Commissioners as the independent certified public accountant considers necessary.
V.I. Code tit. 22, § 630 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 630. Notification of adverse financial condition

 (a) The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five business days 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 Commissioner as of the balance sheet date currently under audit or that the insurer does not meet the minimum capital and surplus requirement of the Virgin Islands insurance code as of that date. An insurer that has received a report pursuant to this paragraph shall forward a copy of the report to the Commissioner not later than five business days of receipt of the report and shall provide the independent certified public accountant making the report with evidence of the report being furnished to the Commissioner. If the independent certified public accountant fails to receive the evidence within the required five business day period, the independent certified public accountant shall furnish to the Commissioner a copy of its report within the next five business days. (b) No independent certified public accountant is liable in any manner to any person for any statement made in connection with the above paragraph if the statement is made in good faith in compliance with subsection (a). (c) If the accountant, subsequent to the date of the audited financial report filed pursuant to this section, becomes aware of facts that may have affected the accountant’s report, the accountant is required to take action as prescribed in Volume 1, Section AU 561 of the Professional Standards of the AICPA.
V.I. Code tit. 22, § 631 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 631. Communication of internal control related matters noted in an audit

 (a) In addition to the annual audited financial report, each insurer shall furnish the Commissioner 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 60 days after the filing of the annual audited financial report, and must 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 discussed in section 622(a) 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. (b) The insurer is required to provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant’s communication.
V.I. Code tit. 22, § 632 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 632. Accountant’s letter of qualifications

 The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating: (1) That the accountant is independent with respect to the insurer and conforms to the standards of the profession as contained in the Code of Professional Ethics and pronouncements of the AICPA and the Rules of Professional Conduct of the Virgin Islands Board of Accountancy, or similar code; (2) A general description of the accountant’s background and experience, and a description of the insurer auditing experience of the staff assigned to the engagement and whether each is an independent certified public accountant. Nothing within this Chapter shall be construed as prohibiting the accountant from utilizing such staff as the accountant considers appropriate where use is consistent with the standards prescribed by generally accepted auditing standards; (3) That the accountant understands the annual audited financial report and the accountant’s opinion thereon will be filed in compliance with this Chapter and that the Commissioner will be relying on this information in the monitoring and regulation of the financial position of insurers; (4) That the accountant consents to the requirements of section 633 of this Chapter and that the accountant consents and agrees to make available for review by the Commissioner, or the Commissioner’s designee or appointed agent, the workpapers, as defined in section 633; (5) A representation that the accountant is properly licensed by an appropriate state licensing authority and is a member in good standing in the AICPA; and (6) A representation that the accountant is in compliance with the requirements of section 627.
V.I. Code tit. 22, § 633 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 633. Definition, availability and maintenance of independent certified public accountants work papers

 (a) Work papers are the records kept by the 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. Work papers, accordingly, 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 their audit of the financial statements of an insurer and which support the accountant’s opinion. (b) Every insurer required to file an audited financial report pursuant to this Chapter, shall require the accountant to make available for review by examiners of the Division, all work papers 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 Division or at any other reasonable place designated by the Commissioner. The insurer shall require that the accountant retain the audit work papers and communications until the Division 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. (c) In the conduct of a review under subsection (b), photocopies of pertinent audit work papers may be made and retained by the Division. The reviews by the Division’s examiners are considered investigations and all working papers and communications obtained during the course of the investigations must be afforded the same confidentiality as other examination work papers generated by the Division.
V.I. Code tit. 22, § 635 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 635. Internal audit function requirements

 (a) Exemption — An insurer is exempt from the requirements of this subsection if: (1) The insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000; or (2) If the insurer is a member of a group of insurers that has annual direct written and unaffiliated assumed premium including international direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1,000,000,000. (b) Function — The insurer or group of insurers shall establish an internal audit function that provides independent, objective and reasonable assurance to the audit committee and the insurer’s management regarding the, insurer’s governance, risk management and internal controls. This assurance is provided by performing general and specific audits, reviews and tests and by employing other techniques deemed necessary to protect assets, evaluate control effectiveness and efficiency, and evaluate compliance with policies and regulations. (c) Independence — To ensure that internal auditors remain objective, the internal audit function must be organizationally independent. Specifically, the internal audit function will not defer ultimate judgment on audit matters to others and shall appoint an individual to head the internal audit function who will have direct and unrestricted access to the board of directors. Organizational independence does not preclude dual-reporting relationships. (d) Reporting — The head of the internal audit function shall report to the audit committee regularly, but no less than annually, on the periodic audit plan, factors that may adversely impact the internal audit function’s independence or effectiveness, material findings from completed audits and the appropriateness of corrective actions implemented by management as a result of audit findings. (e) Additional Requirements — If an insurer is a member of an insurance holding company system or included in a group of insurers, the insurer may satisfy the internal audit function requirements set forth in this section at the ultimate controlling parent level, an intermediate holding company level or the individual legal entity level.
V.I. Code tit. 22, § 636 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 636. Conduct of insurer in connection with the preparation of required reports and documents

 (a) No director or officer of an insurer shall, directly or indirectly: (1) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review or communication required under this chapter; or (2) Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review or communication required under this chapter. (b) No officer or director of an insurer, or any other person acting under the direction thereof, shall directly or indirectly take any action to coerce, manipulate, mislead or fraudulently influence any accountant engaged in the performance of an audit pursuant to this chapter if that person knew or should have known that the action, if successful, could result in rendering the insurer’s financial statements materially misleading. (c) For purposes of subsection (b), actions that, “if successful, could result in rendering the insurer’s financial statements materially misleading” include, but are not limited to, actions taken at any time with respect to the professional engagement period to coerce, manipulate, mislead or fraudulently influence an accountant: (1) To issue or reissue a report on an insurer’s financial statements that is not warranted in the circumstances due to material violations of statutory accounting principles prescribed by the Commissioner, generally accepted auditing standards, or other professional or regulatory standards; (2) Not to perform an audit, review or other procedures required by generally accepted auditing standards or other professional standards; (3) Not to withdraw an issued report; or (4) Not to communicate matters to an insurer’s audit committee.
V.I. Code tit. 22, § 639 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 639. Required filings for alien insurers

 (a) Canadian, British and all other alien insurers shall file each year an audited financial report with the Commissioner on or before September 30 for the year ended December 31 immediately preceding. The Commissioner may waive any provision of this section which may be inapplicable to alien insurers. (b) The annual audited financial report must be defined as the annual statement of total business on the form filed by such companies with their supervision authority duly audited by an independent chartered accountant, chartered or certified. (c) For such insurers, the letter required in section 626(b) must state that the accountant is aware of the requirements relating to the annual audited financial report filed with the Commissioner pursuant to section 622 and shall affirm that the opinion expressed is in conformity with those requirements.
V.I. Code tit. 22, § 640 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 26 - Annual Audit and Financial Reporting|§ 640. Severability provision

 If any section or portion of a section of this Law or its applicability to any person or circumstance is held invalid by a court, the remainder of this Chapter or the applicability of the provision to other persons or circumstances are not be affected.
V.I. Code tit. 22, § 651 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 27 - Unauthorized Insurers|§ 651. Solicitation by unauthorized insurer prohibited; penalty

 (a) An insurer not thereunto authorized by the Commissioner shall not solicit insurance business in this territory, nor transact insurance business in this territory except as provided in this chapter. (b) No person may, in this territory, represent an unauthorized insurer or solicit, negotiate, or effectuate any insurance with or place any risks with any such unauthorized insurer, or in any way or manner aid any such insurer in effecting any insurance, except as specifically provided in this chapter. This provision does not prohibit an adjuster or attorney at law from representing such an unauthorized insurer from time to time in this territory in his professional capacity. (c) Each violation of this section shall constitute a separate offense punishable by a fine of not less than $50 nor more than $1,000.
V.I. Code tit. 22, § 652 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 27 - Unauthorized Insurers|§ 652. Validity of contracts illegally effectuated

 (a) No contract of insurance placed by a surplus line broker shall be binding upon the insured and no premium charged therefor shall be due and payable until the surplus line broker shall have notified the insured in writing, a copy of which shall be maintained by the broker with records of the contract and available for examination, that: (1) the insurer with which the broker has placed the insurance is not licensed in this Territory and is not subject to its supervision; and (2) in the event of the insolvency of the unauthorized insurer, losses will not be paid by the Virgin Islands Guaranty Fund. (b) A contract of insurance effectuated by an unauthorized insurer in violation of the provisions of this title shall be voidable except at the instance of the insurer.
V.I. Code tit. 22, § 653 (2019)
2019 US Virgin Islands Code|Title 22 - Insurance|Chapter 27 - Unauthorized Insurers|§ 653. Surplus line coverage

 (a) If certain insurance coverages cannot be procured from authorized insurers, such coverages, hereinafter designated as “surplus lines,” may be procured from unauthorized insurers subject to the following conditions: (1) the insurance must be procured through a licensed surplus line broker; and (2) the insurance must not be procurable, after diligent effort has been made to do so from among a majority of the insurers authorized to transact that kind of insurance in this territory and placing the insurance in an unauthorized insurer must not be for the purpose of securing a lower premium rate than would be accepted by any authorized insurer. (b) Within 30 days after the procuring of any surplus line insurance, the surplus line broker must execute and shall file with the Commissioner: (1) a written report, which shall be kept confidential and which shall include the following: (A) the name and address of the insured; (B) the identity of the insurer or insurers; (C) a description of the subject and location of the risk; (D) the amount of premium charged for the insurance; and (E) such other pertinent information as the Commissioner may reasonably require; and (2) an affidavit setting forth the facts referred to in subsection (a), paragraph (2), of this section. Such affidavit shall be open to public inspection.