Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-1 - Purpose and scope

Current through July 10, 2024
(a) Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies are intended to
			 improve the Insurance Department's surveillance of the financial condition of
			 insurance companies, health care centers and fraternal benefit societies doing
			 business in the State of Connecticut by requiring (1) an annual audit of
			 financial statements reporting the financial position and the results of
			 operations of insurers by independent certified public accountants, (2) a
			 Communication of Internal Control Related Matters Noted in an Audit, and (3) a
			 Management's Report of Internal Control Over Financial Reporting.
(b)
(1)
			 Every insurer as defined in Section
			 38a-54-2 of the
			 Regulations of Connecticut State Agencies shall be subject to the requirements
			 of Sections 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies. Insurers having
			 direct premiums written in this state of less than $1,000,000 in any year and
			 having less than 1,000 policyholders or certificateholders of directly written
			 policies nationwide at the end of any year are exempt from Sections 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies for such year,
			 unless the Commissioner makes a specific finding that compliance is necessary
			 for the Commissioner to carry out statutory responsibilities, except that
			 insurers having assumed premiums pursuant to contracts and/or treaties of
			 reinsurance of $1,000,000 or more shall not be so exempt.
(2) Foreign and alien insurers filing the
			 audited financial reports in another state, pursuant to that state's
			 requirement for filing of audited financial reports which has been found by the
			 Commissioner to be substantially similar to the requirements herein, are exempt
			 from Sections 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies if:
(A) a copy of the audited financial report,
			 Communication of Internal Control Related Matters Noted in an Audit, and the
			 Accountant's Letter of Qualifications, which are filed with such other state,
			 are filed with the Commissioner in accordance with the filing dates specified
			 in Sections
			 38a-54-3,
			 38a-54-9
			 a and 38a-54-10, respectively, of the Regulations of Connecticut State Agencies
			 (Canadian insurers may submit accountants' reports as filed with the Office of
			 the Superintendent of Financial Institutions, Canada); and
(B) a copy of any Notification of Adverse
			 Financial Condition Report filed with such other state is filed with the
			 Commissioner within the time specified in Section
			 38a-54-9
			 of the Regulations of Connecticut State Agencies.
(C) Foreign or alien insurers required to
			 file a Management's Report of Internal Control Over Financial Reporting in
			 another state are exempt from filing such Report in this state provided the
			 other state has substantially similar reporting requirements and the report is
			 filed with the Commissioner of the other state within the time specified by the
			 other state.