2023 New York Laws › ISC - Insurance › Article 3 - Administrative and Procedural Provisions › 307 - Annual Statements; Audited Financial Statements.

§  307. Annual statements; audited financial statements. (a) (1) Every
insurer and every fraternal benefit society that is authorized to do  an
insurance  business  in  this  state, and every pension fund, retirement
system or state fund that is required, by any  law  of  this  state,  to
report  to  the  superintendent  or  is  subject to the superintendent's
examination, shall file in the office of the superintendent, annually on
or before the first day of March, a statement, to be known as its annual
statement, executed in duplicate, verified by the oath of at  least  two
of its principal officers, showing its condition at last year-end or, in
the  case  of  a  pension fund or retirement system, on such date in the
year next preceding as the superintendent may  approve.  Such  statement
shall   be   in  such  form  and  shall  contain  such  matters  as  the
superintendent  shall  prescribe.  The  superintendent  may  accept   an
electronic  filing of a foreign insurer's annual statement that does not
contain the signatures or verification of the officers provided that the
foreign insurer has filed, in its state of domicile, an annual statement
verified by the oath of at least two of its principal officers. In  such
a situation, the officers of the foreign insurer shall be deemed to have
given their oath in this state.
(2)  The  superintendent shall from time to time prescribe the form of
such annual statement, which may be a printed document and/or electronic
media, and which may be  varied  as  to  different  types  of  insurers,
corporations,  societies, pension funds and retirement systems, as shall
seem to him best adapted to elicit a true exhibit of  the  condition  of
each such entity, in respect to every matter which he may deem material.
For  every annual statement form which differs from or is in addition to
those adopted from time to time by the national association of insurance
commissioners,  the  superintendent  shall  cause  to  be  prepared  and
furnished  to  every insurer, pension fund or retirement system required
by law to report to him, printed forms of the statements  and  schedules
required by him.
(3)  The  annual  statement of an alien insurer may be verified by the
oath of the manager or  assistant  manager  thereof  within  the  United
States,  or  by  any  other official of such insurer authorized by it to
sign and verify its annual statements, if such  authorization  shall  be
proved  by  filing  with  the  superintendent  such  evidence  as he may
require. The annual statement of an alien insurer, excepting a fraternal
benefit society, shall be a separate  statement,  to  be  known  as  its
general form of statement, of the business done within the United States
and  of  the  assets  held by or for it within the United States for the
protection of policyholders and creditors within the United  States  and
of  the  liabilities incurred against such assets, and shall not contain
any statement in regard to its assets and business  elsewhere.  But  the
superintendent   may  require  any  such  alien  insurer  to  give  such
additional information as to its total business or assets or any portion
thereof as he may determine.
(4) Every  insurer  and  every  fraternal  benefit  society  which  is
authorized  to do an insurance business in this state, and every pension
fund, retirement system or state fund which is required by  any  law  of
this  state  to  report  to the superintendent, which willfully fails to
file an annual statement as required in this section, or willfully fails
to reply within thirty days to a written inquiry by  the  superintendent
in  connection therewith, shall, in addition to other penalties provided
by this chapter, be subject, upon  due  notice  and  opportunity  to  be
heard, to a penalty of up to two hundred fifty dollars per day of delay,
not  to  exceed  twenty-five thousand dollars in the aggregate, for each
such failure.
(b) (1) Every licensed  insurer,  except  an  assessment  co-operative
property/casualty  insurance  company  having direct premiums written in
this state of less than  two  hundred  fifty  thousand  dollars  in  any
calendar year and having less than five hundred policyholders at the end
of  such  calendar year, shall be required to file within five months of
the end of such calendar year, an annual financial statement  (including
an annual financial statement of any subsidiary of the type described in
paragraph  nine  of  subsection (a) of section one thousand four hundred
four or subparagraph (B) of paragraph four of subsection (a) of  section
one  thousand  four  hundred  seven  of  this  chapter) together with an
opinion thereon of an independent certified  public  accountant  on  the
financial  statement  of  such  insurer  and  any such subsidiary, which
statement and opinion shall be available for public  inspection  at  the
office  of  the  superintendent and the principal office of the insurer.
Each such insurer shall furnish the superintendent with an evaluation by
such accountant  of  the  accounting  procedures  and  internal  control
systems  of  the  insurer  that  are  necessary to the furnishing of the
opinion.  Each  such  insurer  shall  require  the  accountant  to  make
available  for  review  by  the  superintendent  the work papers and any
communications between the accountant and the insurer  relating  to  the
examination of the insurer. Any such work papers and communications made
available to the superintendent shall be kept confidential, shall not be
subject  to  subpoena  and shall not be made public unless, after notice
and opportunity to be heard,  the  superintendent  determines  that  the
interests of policyholders, stockholders or the public will be served by
the  publication thereof. Each such insurer shall require the accountant
to notify the superintendent if the accountant has determined  that  the
insurer  has materially misstated its financial condition as reported to
the superintendent or that the insurer does not meet minimum capital  or
surplus to policyholder requirements.
(2)  If  the  insurer  is part of a group of insurance companies which
utilizes  a  pooling  agreement  or  one  hundred  percent   reinsurance
agreement  that  affects  the  solvency  and integrity of such insurer's
reserves and such insurer cedes all of its direct and  assumed  business
to the pool, then such insurer may file audited consolidated or combined
financial  statements  in  lieu  of  separate  annual  audited financial
statements provided that a consolidating or combining exhibit  be  filed
that  clearly  reconciles  amounts in the audited financial statement to
the individual company annual statements. In addition,  an  insurer  may
comply  by  filing  statements  prepared  in  accordance  with generally
accepted accounting principles, provided that appropriate reconciliation
is made of the differences between net income and  capital  and  surplus
reported  on  that  basis  and  that  reported  in  the annual statutory
statement filed with the superintendent.
(3) In lieu of the requirements of this subsection, the superintendent
may accept copies of filings of audited financial statements required by
another state where they are found to be substantially  similar  to  the
requirements herein. Upon written application of any insurer, extensions
of  the  filing  date and exemptions from the filing requirements may be
granted by the superintendent, if the superintendent finds, upon  review
of  the  application,  that  compliance  would constitute a financial or
organizational hardship upon the insurer.