Compilation of Rules and Regulations of the State of Georgia › Department 120 - OFFICE OF COMMISSIONER OF INSURANCE, SAFETY FIRE COMMISSIONER AND INDUSTRIAL LOAN COMMISSIONER › Chapter 120-2 - RULES OF COMMISSIONER OF INSURANCE › Subject 120-2-60 - CPA ANNUAL AUDITED FINANCIAL REPORTS › Rule 120-2-60-.03 - Definitions

Current through Rules and Regulations filed through June 27, 2024
(1) "Accountant" or
				"independent certified public accountant" means an independent certified public
				accountant or accounting firm in good standing with the American Institute of
				Certified Public Accountants (AICPA) and in all states in which they are
				licensed to practice; for Canadian and British companies, it means a
				Canadian-chartered or British-chartered accountant.
(2) An "affiliate" of, or person "affiliated"
				with, a specific person, is a person that directly, or indirectly through one
				or more intermediaries, controls, or is controlled by, or is under common
				control with, the person specified.
(3) "Audit committee" means a committee (or
				equivalent body) established by the board of directors of an entity for the
				purpose of overseeing the accounting and financial reporting processes of an
				insurer or Group of insurers, the internal audit function of an insurer or
				group of insurers (if applicable), and external audits of financial statements
				of the insurer or Group of insurers. The Audit committee of any entity that
				controls a Group of insurers may be deemed to be the Audit committee for one or
				more of these controlled insurers solely for the purposes of this regulation at
				the election of the controlling person. Refer to
				120-2-60-.14(5)
				for exercising this election. If an Audit committee is not designated by the
				insurer, the insurer's entire board of directors shall constitute the Audit
				committee.
(4) "Audited financial
				report" means and includes those items specified in
				120-2-60-.05 of this
				rule.
(5) "Indemnification" means
				an agreement of indemnity or release from liability where the intent or effect
				is to shift or limit in any manner the potential liability of the person or
				firm for failure to adhere to applicable auditing or professional standards,
				whether or not resulting in part from knowing or other misrepresentations made
				by the insurer or its representatives.
(6) "Independent board member" has the same
				meaning as described in
				120-2-60-.14(3).
(7) "Insurer" means a licensed insurer as
				defined in Section
				33-3-2(a)  of the
				Georgia Insurance Code.
(8) "Group
				of insurers" means those licensed insurers included in the reporting
				requirements of Section
				33-13-4 of the Georgia Insurance
				Code, or a set of insurers as identified by management, for the purpose of
				assessing the effectiveness of Internal control over financial
				reporting.
(9) "Internal audit
				function" means a person or persons that provide independent, objective and
				reasonable assurance designed to add value and improve an organization's
				operations and accomplish its objectives by bringing a systematic, disciplined
				approach to evaluate and improve the effectiveness of risk management, control
				and governance processes.
(10)
				"Internal control over financial reporting" means a process effected by an
				entity's board of directors, management and other personnel designed to provide
				reasonable assurance regarding the reliability of the financial statements,
				i.e., those items specified in
				120-2-60-.05(2)(b) -
				(g) of this regulation and includes those
				policies and procedures that:
(a) Pertain to
				the maintenance of records that, in reasonable detail, accurately and fairly
				reflect the transactions and dispositions of assets;
(b) Provide reasonable assurance that
				transactions are recorded as necessary to permit preparation of the financial
				statements, i.e., those items specified in
				120-2-60-.05(2)(b) -
				(g) of this regulation and that receipts and
				expenditures are being made only in accordance with authorizations of
				management and directors; and
(c)
				Provide reasonable assurance regarding prevention or timely detection of
				unauthorized acquisition, use or disposition of assets that could have a
				material effect on the financial statements, i.e., those items specified in
				120-2-60-.05(2)(b) -
				(g) of this regulation.