Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.023 - MANAGEMENT'S REPORT OF INTERNAL CONTROL OVER FINANCIAL REPORTING

Current through August 31, 2023
01.
Premium Threshold
. Every
			 insurer needs to file an audited financial report pursuant to this chapter that
			 has annual direct written and assumed premiums, excluding premiums reinsured
			 with the Federal Crop Insurance Corporation and Federal Flood Program, of five
			 hundred million dollars ($500,000,000) or more will prepare a report of the
			 insurer's or group of insurers' internal control over financial reporting, as
			 these terms are defined in Section
			 010. The report will be filed with
			 the Director along with the Communication of Internal Control Related Matters
			 Noted in an Audit described under Section
			 018. Management's Report of
			 Internal Control over Financial Reporting will be as of December 31 immediately
			 preceding. (3-31-22)
02.
RBC
			 Level or Other Event
. Notwithstanding the premium threshold in
			 Subsection 023.01 of this rule, the
			 Director may require an insurer to file Management's Report of Internal Control
			 over Financial Reporting if the insurer is in any RBC level event, or meets any
			 one (1) or more of the standards of an insurer deemed to be in hazardous
			 financial condition as defined in IDAPA 18.07.05, "Director's Authority for
			 Companies Deemed to be in Hazardous Financial Condition." (3-31-22)
03.
Section
			 404
. An insurer or a group
			 of insurers may file its or its parent's Section
			 404 Report and an addendum in
			 satisfaction of this Section
			 023 requirement provided that those
			 internal controls of the insurer or group of insurers having a material impact
			 on the preparation of the insurer's or group of insurers' audited statutory
			 financial statements (those items included in Subsections
			 012.02 through
			 012.07 of this rule) were
			 included in the scope of the Section
			 404 Report. The addendum will be a
			 positive statement by management that there are no material processes with
			 respect to the preparation of the insurer's or group of insurers' audited
			 statutory financial statements (those items included in Subsections
			 012.02 through
			 012.07 of this rule) excluded
			 from the Section 404 Report.
			 If there are internal controls of the insurer or group of insurers that have a
			 material impact on the preparation of the insurer's or group of insurers'
			 audited statutory financial statements and those internal controls were not
			 included in the scope of the Section
			 404 Report, the insurer or group of
			 insurers may either file: (3-31-22)
a. A
			 Section 023 report;
			 or (3-31-22)
b. The Section
			 404 Report and a Section
			 023 report for those internal
			 controls that have a material impact on the preparation of the insurer's or
			 group of insurers' audited statutory financial statements not covered by the
			 Section 404 Report,
			 providing the insurer or group of insurers is: (3-31-22)
i. Directly subject to Section
			 404; (3-31-22)
ii. Part of a holding company system whose
			 parent is directly subject to Section
			 404; (3-31-22)
iii. Not directly subject to Section
			 404 but is a SOX Compliant Entity;
			 or (3-31-22)
iv. A member of a
			 holding company system whose parent is not directly subject to Section
			 404 but is a SOX Compliant Entity.
			 (3-31-22)