reglab/statecodes huggingface dataset:
Connecticut Administrative Code › Title 38a - Insurance Department › 53 - Statement of Actuarial Opinion › Section 38a-53-2 - Statement of actuarial opinion

Current through July 10, 2024
(a) Each insurer
			 shall include as an attachment to page one of its Annual Statement an opinion
			 of a Qualified Actuary or qualified reserve specialist, entitled "Statement of
			 Actuarial Opinion," which shall set forth his or her certification as to the
			 adequacy of all reserve liabilities of the company. The Qualified Actuary or
			 reserve specialist shall be appointed by the Board of Directors, or its
			 equivalent, or by a committee of the Board, by December 31 of the calendar year
			 for which the opinion is rendered. Whenever the Appointed Actuary or reserve
			 specialist is replaced by the Board of Directors, the company must notify its
			 domiciliary commissioner within 30 days of the date of the Board action and
			 give the reasons for the replacement. The Appointed Actuary shall present a
			 report to the Board of Directors each year on the items within the scope of the
			 opinion. For good cause shown, the Commissioner may in his discretion, require
			 the Statement of Actuarial Opinion to be prepared by an independent Qualified
			 Actuary or qualified reserve specialist who is not an employee of the
			 company.
(b) Every property and
			 casualty insurance company doing business in this state, unless otherwise
			 exempted by the domiciliary commissioner, shall annually submit the opinion of
			 an Appointed Actuary, entitled "Statement of Actuarial Opinion." This opinion
			 shall be filed in accordance with the applicable NAIC Property and Casualty
			 Annual Statement Instructions.
(1) Actuarial
			 Opinion Summary:
(A) Every property and
			 casualty insurance company domiciled in this state that is required to submit a
			 Statement of Actuarial Opinion shall annually submit an actuarial opinion
			 summary, written by the company's Appointed Actuary. This actuarial opinion
			 summary shall be filed in accordance with the applicable NAIC Property and
			 Casualty Annual Statement instructions and shall be considered as a document
			 supporting the Actuarial Opinion required in subsection (a) of this
			 section.
(B) A company licensed but
			 not domiciled in this state shall provide the actuarial opinion summary upon
			 request.
Connecticut Administrative Code › Title 38a - Insurance Department › 53 - Statement of Actuarial Opinion › Section 38a-53-3 - Availability of workpapers and confidentiality

Current through July 10, 2024
(a) Every
			 insurer required to file a Statement of Actuarial Opinion with its Annual
			 Statement pursuant to this regulation, shall make available all workpapers for
			 review by the Commissioner or his designated representative. Such workpapers
			 shall be maintained at the company and available for examination by the
			 Commissioner or the Commissioner's designated agent from the date of the filing
			 of the Statement of Actuarial Opinion for seven years.
(b) Documents, materials or other information
			 in the possession or control of the Insurance Department, that are furnished to
			 the commissioner pursuant to this section or obtained by the commissioner in a
			 review or examination pursuant to this section, that are considered an
			 actuarial report, workpapers or actuarial opinion summary provided in support
			 of the opinion, and any other material provided by the company to the
			 commissioner in connection with the actuarial report, workpapers or actuarial
			 opinion summary, shall be kept confidential by the commissioner and shall be
			 confidential by law and privileged. Such information shall not be made public,
			 shall not be subject to subpoena, and shall not be subject to the Freedom of
			 Information Act.
Connecticut Administrative Code › Title 38a - Insurance Department › 53 - Statement of Actuarial Opinion › Section 38a-53-4 - Exemptions

Current through July 10, 2024
(a) Upon written application of an insurer,
			 the Commissioner may issue an exemption from compliance with the provisions of
			 this regulation in the following instances:
(1) An insurer that has less than $1,000,000
			 total direct plus assumed written premiums during a calendar year, or that has
			 less than 1,000 policyholders or certificate holders at the end of a calendar
			 year, in lieu of the certification required for the calendar year, may submit
			 an affidavit under oath of an officer of the insurer that specifies that amount
			 of direct, plus assumed, premiums written and the total number of policyholders
			 and certificate holders. An insurer which intends to utilize this exemption
			 shall submit a letter of intent to the insurance regulatory official in its
			 domiciliary state no later than December 1 of the calendar year for which the
			 exemption is to be claimed;
(2) An
			 insurer which is under rehabilitation, liquidation, or any other delinquency
			 proceeding ordered pursuant to a statutory provision unless ordered to make the
			 report by the insurance regulatory official of its domiciliary state;
(3) An insurer writing property insurance
			 only if the exemption is agreed to by the insurance regulatory official in the
			 insurer's domiciliary state based on the nature of the business
			 written;
(4) Filing the report
			 would constitute financial hardship, which is presumed to exist for an insurer
			 other than a health care center if the projected reasonable cost of the report
			 would exceed the lesser of:
(A) One percent of
			 the insurer's capital and surplus reflected in the insurer's annual statement
			 for the calendar year for which the exemption is sought; or
(B) Three percent of the insurer's net direct
			 plus assumed premiums written during the calendar year for which the exemption
			 is sought as reflected in the insurer's annual statement filed with its
			 insurance regulatory official of its domiciliary state.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-3 - General requirements related to filing and extension for filing of annual audited financial reports and audit committee appointment

Current through July 10, 2024
(a) All insurers shall have an annual audit
			 by an independent certified public accountant and shall file an audited
			 financial report with the Commissioner on or before June 1 for the year ended
			 December 31 immediately preceding. The Commissioner may require an insurer to
			 file an audited financial report earlier than June 1 with ninety (90) days
			 advance notice to the insurer.
(b)
			 Extensions of the June 1 filing date may be granted by the Commissioner for
			 thirty (30) day periods upon showing by the insurer and its independent
			 certified public accountant the reasons for requesting such extension and
			 determination by the Commissioner of good cause for an extension. The request
			 for extension shall be received in writing not less than ten (10) days prior to
			 the due date in sufficient detail to permit the Commissioner to make an
			 informed decision with respect to the requested extension.
(c) If an extension is granted in accordance
			 with the provisions of this section, a similar extension of thirty (30) days
			 shall be granted for the filing of the Management's Report of Internal Control
			 Over Financial Reporting.
(d) Each
			 insurer required to file an annual audited financial report pursuant to
			 Sections
			 38a-54-1
			 through
			 38a-54-14,
			 inclusive, of the Regulations of the Connecticut State Agencies shall designate
			 a group of individuals as constituting its audit committee, as defined in
			 Section
			 38a-54-2 of the
			 Regulations of the Connecticut State Agencies. The audit committee of an entity
			 that controls an insurer may be deemed to be the insurer's audit committee for
			 purposes of Sections
			 38a-54-1
			 through
			 38a-54-14,
			 inclusive, of the Regulations of the Connecticut State Agencies at the election
			 of the controlling person.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-4 - Contents of annual audited financial report

Current through July 10, 2024
(a) The annual
			 audited financial report shall report 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 of domicile.
(b) The annual audited financial report shall
			 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 changes in capital and
			 surplus;
(5) statement of cash
			 flows;
(6) notes to financial
			 statements. These notes shall be those required by the appropriate NAIC Annual
			 Statement Instructions and the NAIC Accounting Practices and Procedures Manual.
			 The notes shall include a reconciliation of differences, if any, between the
			 audited statutory financial statements and the annual statement filed pursuant
			 to Section
			 38a-53
			 of the Connecticut General Statutes with a written description of the nature of
			 these differences.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-6 - Qualifications of independent certified public accountant

Current through July 10, 2024
(a) The Commissioner shall not recognize any
			 person or firm as a qualified independent certified public accountant if the
			 person or firm:
(1) is not in good standing
			 with the AICPA and in all states in which the accountant is licensed to
			 practice, or, for a Canadian or British company, that is not a chartered
			 accountant; or
(2) has either
			 directly or indirectly entered into an agreement of indemnity or release from
			 liability (collectively referred to as "indemnification") with respect to the
			 audit of the insurer.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-7 - Consolidated or combined audits

Current through July 10, 2024
An insurance company may make 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 which utilizes a pooling or
				one hundred percent reinsurance agreement that affects the solvency and
				integrity of the insurer's reserves and such insurer cedes all of its direct
				and assumed business to the pool. In such cases, a columnar consolidating or
				combining worksheet shall be filed with the report, as follows:
(1) Amounts shown on the consolidated or
			 combined audited financial report shall be shown on the worksheet.
(2) Amount for each insurer subject to this
			 section shall 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 shall be included.
(5) A reconciliation shall 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.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-8 - Scope of audit and report of independent certified public accountant

Current through July 10, 2024
Financial statements furnished pursuant to Section
				38a-54-4
				of the Regulations of Connecticut State Agencies shall be examined by the
				independent certified public accountant. The audit of the insurance company's
				financial statements shall 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
				38a-54-11
				c of the Regulations of Connecticut State Agencies, the independent certified
				public accountant shall consider, as that term is defined in Statement on
				Auditing Standards 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 shall be given to the procedures illustrated in the Financial
				Condition Examiner's Handbook promulgated by the National Association of
				Insurance Commissioners as the independent certified public accountant deems
				necessary.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-9 - Notification of adverse financial condition

Current through July 10, 2024
(a) The insurer
			 required to furnish the annual audited financial report shall require the
			 independent certified public accountant to notify in writing within five (5)
			 business days 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 Section
			 38a-72
			 of the Connecticut General Statutes, as amended, as of that date. The insurer
			 shall furnish such notification to the Commissioner within five (5) business
			 days of receipt thereof 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
			 such evidence within the required five (5) business day period, the independent
			 certified public accountant shall furnish to the Commissioner a copy of its
			 report within the next five (5) business days.
(b) No independent certified public
			 accountant shall be liable in any manner to any person for any statement made
			 in connection with this section if such statement is made in good faith
			 compliance with this section.
(c)
			 If the accountant, subsequent to the date of the audited financial report filed
			 pursuant to Section
			 38a-54-3
			 of the Regulations of Connecticut State Agencies, becomes aware of facts which
			 might have affected his or her report, the accountant shall fulfill his or her
			 obligation to take such action as prescribed in Volume 1, Section AU 561 of the
			 Professional Standards of the AICPA.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-9a - Communication of internal control related matters noted in an audit

Current through July 10, 2024
(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
			 controls over financial reporting noted during the audit. Such communication
			 shall be prepared by the accountant within sixty (60) days after the filing of
			 the annual audited financial report, and shall contain: a description of any
			 unremediated material weakness, as the term "material weakness" is defined in
			 Statement on Auditing Standards 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 set forth in
			 Section
			 38a-54-3
			 of the Regulations of the Connecticut State Agencies in the insurer's internal
			 control over financial reporting noted by the accountant during the course of
			 the audit.
(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 communications.
(c) If no unremediated material weaknesses
			 were noted, the communication should so state in written notification to the
			 Commissioner by June 1 as part of the annual audited financial report
			 filing.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-10 - Accountant's letter of qualifications

Current through July 10, 2024
The accountant shall furnish the insurer in connection with,
				and for inclusion in, the filing of the annual audited financial report, a
				letter which states all of the following:
(1) That the accountant is independent with
			 respect to the insurer and conforms to the standards or his or her profession
			 as contained in the Code of Professional Ethics and pronouncements of the AICPA
			 and the Rules of Professional Conduct of the Connecticut State Board of
			 Accountancy, or similar code.
(2)
			 With respect to the staff assigned to the engagement, their background and
			 experience in general, their experience in audits of insurers, and whether each
			 is an independent certified public accountant. Nothing within Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies shall be construed
			 as prohibiting the accountant from utilizing such staff as he or she deems
			 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 his or
			 her opinion thereon will be filed in compliance with Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies 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
			 38a-54-11
			 of the Regulations of Connecticut State Agencies and that the accountant
			 consents and agrees to make available for review by the Commissioner, his
			 designee or his appointed agent, the workpapers, as defined in Section
			 38a-54-2 of the
			 Regulations of Connecticut State Agencies.
(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.
(6)
			 A representation that the accountant is in compliance with the requirements of
			 Section
			 38a-54-6
			 of the Regulations of Connecticut State Agencies.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-11 - Availability and maintenance of independent CPA work-papers

Current through July 10, 2024
(a) Every insurer required to file an audited
			 financial report pursuant to Section
			 38a-54-3
			 of the Regulations of Connecticut State Agencies, shall require the accountant
			 to make available for review by Insurance Department examiners, all workpapers
			 prepared in the conduct of his or her audit and any communications related to
			 the audit between the accountant and the insurer, at the offices of the
			 insurer, at the Insurance Department or at any other reasonable place
			 designated by the Commissioner. The insurer shall require that the accountant
			 retain the audit workpapers and communications until the Insurance Department
			 has filed a report of examination covering the period of the audit but no
			 longer than seven (7) years from the date of the audit report.
(b) In the conduct of the aforementioned
			 periodic review by the Department examiners, it shall be agreed that
			 photocopies of pertinent audit workpapers may be made and retained by the
			 Department. Such reviews by the Department examiners shall be considered
			 investigations and all working papers and communications obtained during the
			 course of such investigations shall be afforded the same confidentiality as
			 other examination workpapers generated by the Department.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-11b - Conduct of insurer in connection with the preparation of required reports and documents

Current through July 10, 2024
(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 Sections
			 38a-54-1 to
			 38a-54-13,
			 inclusive, of the Regulations of Connecticut State Agencies; or
(2) make, or cause another person to make, a
			 misleading statement by omitting a material statement to an accountant in
			 connection with any audit, review or communication required under Sections
			 38a-54-1 to
			 38a-54-13,
			 inclusive, of the Regulations of Connecticut State Agencies.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-11d - Internal audit function requirements

Current through July 10, 2024
The requirements of this section shall be effective January 1,
				2017.
(a)
(1)
Exemption.
An insurer is
			 exempt from the requirement of this section if:
(A) 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, of less than $500,000,000; and
(B) If the insurer is a member of a group of
			 insurers, the group 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, of less than $1,000,000,000.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-12 - Exemptions and compliance dates

Current through July 10, 2024
(a) Upon written
			 application of any insurer, the Commissioner may grant an exemption from
			 compliance with Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies if the Commissioner
			 finds, upon review of the application, that compliance would constitute a
			 financial or organizational hardship upon the insurer. An exemption may be
			 granted at any time and from time to time for a specified period or periods.
			 Within ten (10) days from a denial of an insurer's written request for an
			 exemption, such insurer may request in writing a hearing on its application for
			 an exemption. Such hearing shall be held in accordance with the rules of
			 practice of the Insurance Department, Sections
			 38a-8-7 to
			 38a-8-75,
			 inclusive, of the Regulations of Connecticut State Agencies. A request for
			 exemption must be made for each calendar year for which such exemption is
			 sought. Application for exemption must be received on or before December 31 of
			 the year for which such exemption is sought.
(b) Domestic insurers retaining a certified
			 public accountant on the effective date of Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, who qualify as independent in accordance with AICPA standards, shall
			 comply with Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies for the year ending
			 December 31, 2008 and each year thereafter unless the Commissioner permits
			 otherwise.
(c) Domestic insurers
			 not retaining a certified public accountant on the effective date of Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies who qualifies as
			 independent in accordance with AICPA standards, shall meet the following
			 schedule for compliance unless the Commissioner permits otherwise:
(1) As of December 31, 2008, file with the
			 Commissioner an audited financial report;
(2) For the year ending December 31, 2008,
			 and each year thereafter, file with the Commissioner all reports and
			 communication required by Sections
			 38a-54-1 to
			 38a-54-14,
			 inclusive, of the Regulations of Connecticut State Agencies.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-13 - Canadian and British companies

Current through July 10, 2024
(a) In the case of
			 Canadian and British insurers, the annual audited financial report shall 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.
(b) For such
			 insurers, the letter required in Section
			 38a-54-5
			 of the Regulations of Connecticut State Agencies shall state that the
			 accountant is aware of the requirements relating to the annual audited
			 financial report filed with the Commissioner pursuant to Section
			 38a-54-3
			 and shall affirm that the opinion expressed is in conformity with such
			 requirements.
Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-14 - Severability

Current through July 10, 2024
If any provision of Sections
				38a-54-1 to
				38a-54-13,
				inclusive, of the Regulations of Connecticut State Agencies or the
				applicability thereof to any person or circumstance is held to be invalid, the
				remainder of said sections or the applicability of such provision to other
				persons or circumstances shall not be affected thereby.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-1 - Definitions

Current through July 10, 2024
As used in sections 38a-72-1 to
				38a-72-13,
				inclusive, of the Regulations of Connecticut State Agencies:
(a) "Adjusted RBC Report" means an RBC Report
			 which has been adjusted by the commissioner in accordance with section
			 38a-72-2(e)
			 of the Regulations of Connecticut State Agencies;
(b) "Commissioner" means the Insurance
			 Commissioner of the State of Connecticut;
(c) "Corrective Order" means an order issued
			 by the commissioner specifying corrective actions which the commissioner has
			 determined are required;
(d)
			 "Domestic insurer" means any insurance company domiciled in
			 Connecticut;
(e) "Foreign insurer"
			 means any insurance company that is licensed to do business in Connecticut
			 under section
			 38a-41(a)
			 of the Connecticut General Statutes but is not domiciled in
			 Connecticut;
(f) "NAIC" means the
			 National Association of Insurance Commissioners;
(g) "Life or health insurer" means any
			 insurance company licensed under section
			 38a-41
			 of the Connecticut General Statutes, any licensed property and casualty insurer
			 writing only accident and health insurance, or a fraternal benefit society, as
			 described in section
			 38a-595
			 of the Connecticut General Statutes and including any foreign or alien society
			 licensed under section
			 38a-601
			 of the Connecticut General Statutes;
(h) "Property and casualty insurer" means any
			 insurance company licensed under section
			 38a-41
			 of the Connecticut General Statutes but shall not include monoline mortgage
			 guaranty insurers, financial guaranty insurers and title insurers;
(i) "Negative Trend" means, with respect to a
			 life or health insurer, a negative trend over a period of time, as determined
			 in accordance with the "Trend Test Calculation" included in the Life RBC
			 Instructions;
(j) "RBC" means risk
			 based capital;
(k) "RBC
			 Instructions" means the RBC Report including risk-based capital instructions
			 adopted by the NAIC, as such RBC Instructions may be amended by the NAIC from
			 time to time in accordance with the procedures adopted by the NAIC;
(l) "RBC Level" means an insurer's Company
			 Action Level RBC, Regulatory Action Level RBC, Authorized Control Level RBC, or
			 Mandatory Control Level RBC where:
(1)
			 "Company Action Level RBC" means, with respect to any insurer, the product of
			 2.0 and its Authorized Control Level RBC;
(2) "Regulatory Action Level RBC" means the
			 product of 1.5 and its Authorized Control Level RBC;
(3) "Authorized Control Level RBC" means the
			 number determined under the risk-based capital formula in accordance with the
			 RBC Instructions; and
(4)
			 "Mandatory Control Level RBC" means the product of .70 and the Authorized
			 Control Level RBC;
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-2 - RBC reports

Current through July 10, 2024
(a) Every domestic
			 insurer shall, on or prior to each March 1 (the "filing date"), prepare and
			 submit to the commissioner a report of its RBC Levels as of the end of the
			 calendar year just ended, in a form and containing such information as is
			 required by the RBC Instructions. In addition, every domestic insurer shall
			 file its RBC Report:
(1) With the NAIC in
			 accordance with the RBC Instructions; and
(2) With the insurance commissioner in any
			 state in which the insurer is authorized to do business, if the insurance
			 commissioner has notified the insurer of its request in writing, in which case
			 the insurer shall file its RBC Report not later than the later of: fifteen (15)
			 days from the receipt of notice to file its RBC Report with that state; or the
			 filing date.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-3 - Company action level event

Current through July 10, 2024
(a) "Company Action
			 Level Event" means any of the following events:
(1) The filing of an RBC Report by an insurer
			 which indicates that:
(A) The insurer's Total
			 Adjusted Capital is greater than or equal to its Regulatory Action Level RBC
			 but less than its Company Action Level RBC;
(B) If a life or health insurer, the insurer
			 has Total Adjusted Capital which is greater than or equal to its Company Action
			 Level RBC but less than the product of its Authorized Control Level RBC and 3.0
			 and has a Negative Trend; or
(C) If
			 a property and casualty insurer, the insurer has Total Adjusted Capital which
			 is greater than or equal to its Company Action Level RBC but less than the
			 product of its Authorized Control Level RBC and 3.0 and triggers the trend test
			 determined in accordance with the "Trend Test Calculation" included in the
			 Property and Casualty RBC instructions:
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-4 - Regulatory action level event

Current through July 10, 2024
(a) "Regulatory
			 Action Level Event" means, with respect to any insurer, any of the following
			 events:
(1) The filing of an RBC Report by the
			 insurer which indicates that the insurer's Total Adjusted Capital is greater
			 than or equal to its Authorized Control Level RBC but less than its Regulatory
			 Action Level RBC;
(2) The
			 notification by the commissioner to an insurer of an Adjusted RBC Report that
			 indicates the event in subdivision (1) of this subsection, provided the insurer
			 does not challenge the Adjusted RBC Report under section
			 38a-72-7;
(3) If, pursuant to section
			 38a-72-7, the insurer
			 challenges an Adjusted RBC Report that indicates the event in subdivision (1)
			 of this subsection, the notification by the commissioner to the insurer that
			 the commissioner has, after a hearing, rejected the insurer's
			 challenge;
(4) The failure of the
			 insurer to file an RBC Report by the filing date, unless the insurer has
			 provided an explanation for such failure which is satisfactory to the
			 commissioner and has cured the failure within ten (10) days after the filing
			 date;
(5) The failure of the
			 insurer to submit an RBC Plan to the commissioner within the time period set
			 forth in Section
			 38a-72-3(c);
(6) Notification by the commissioner to the
			 insurer that the RBC Plan or Revised RBC Plan submitted by the insurer is, in
			 the judgment of the commissioner, unsatisfactory, and such notification
			 constitutes a Regulatory Action Level Event with respect to the insurer,
			 provided the insurer has not challenged the determination under section
			 38a-72-7;
(7) If, pursuant to section
			 38a-72-7, the insurer
			 challenges a determination by the commissioner under subdivision (6) of this
			 subsection, the notification by the commissioner to the insurer that the
			 commissioner has, after a hearing, rejected such challenge;
(8) Notification by the commissioner to the
			 insurer that the insurer has failed to adhere to its RBC Plan or Revised RBC
			 Plan, but only if such failure has a substantial adverse effect on the ability
			 of the insurer to eliminate the Regulatory Action Level Event in accordance
			 with its RBC Plan or Revised RBC Plan and the commissioner has so stated in the
			 notification, provided the insurer has not challenged the determination under
			 Section
			 38a-72-7; or
(9) If, pursuant to section
			 38a-72-7, the insurer
			 challenges a determination by the commissioner under subdivision (8) of this
			 subsection, the notification by the commissioner to the insurer that the
			 commissioner has, after a hearing, rejected the challenge.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-5 - Authorized control level event

Current through July 10, 2024
(a) "Authorized
			 Control Level Event" means any of the following events:
(1) The filing of an RBC Report by the
			 insurer which indicates that the insurer's Total Adjusted Capital is greater
			 than or equal to its Mandatory Control Level RBC but less than its Authorized
			 Control Level RBC;
(2) The
			 notification by the commissioner to the insurer of an Adjusted RBC Report that
			 indicates the event in subdivision (1) of this subsection, provided the insurer
			 does not challenge the Adjusted RBC Report under Section
			 38a-72-7;
(3) If, pursuant to section
			 38a-72-7, the insurer
			 challenges an Adjusted RBC Report that indicates the event in subdivision (1)
			 of this subsection, notification by the commissioner to the insurer that the
			 commissioner has, after a hearing, rejected the insurer's challenge;
(4) The failure of the insurer to respond, in
			 a manner satisfactory to the commissioner, to a Corrective Order under section
			 38a-72-7; or
(5) If the insurer has challenged a
			 Corrective Order under section
			 38a-72-7 and the
			 commissioner has, after a hearing, rejected the challenge or modified the
			 Corrective Order, the failure of the insurer to respond, in a manner
			 satisfactory to the commissioner, to the Corrective Order subsequent to
			 rejection or modification by the commissioner.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-6 - Mandatory control level event

Current through July 10, 2024
(a) "Mandatory
			 Control Level Event" means any of the following events:
(1) The filing of an RBC Report which
			 indicates that the insurer's Total Adjusted Capital is less than its Mandatory
			 Control Level RBC;
(2) Notification
			 by the commissioner to the insurer of an Adjusted RBC Report that indicates the
			 event in subdivision (1) of this subsection, provided the insurer does not
			 challenge the Adjusted RBC Report under section
			 38a-72-7 of the
			 Regulations of Connecticut State Agencies; or
(3) If, pursuant to section
			 38a-72-7 of the
			 Regulations of Connecticut State Agencies, the insurer challenges an Adjusted
			 RBC Report that indicates the event in subdivision (1) of this subsection,
			 notification by the commissioner to the insurer that the commissioner has,
			 after a hearing, rejected the insurer's challenge.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-7 - Hearings

Current through July 10, 2024
(a) The insurer shall have the right to a
			 departmental hearing, on a record, at which the insurer may challenge any
			 determination or action by the commissioner upon:
(1) Notification to an insurer by the
			 commissioner of an Adjusted RBC Report; or
(2) Notification to an insurer by the
			 commissioner that the insurer's RBC Plan or Revised RBC Plan is unsatisfactory,
			 and such notification constitutes a Regulatory Action Level Event with respect
			 to such insurer; or
(3)
			 Notification to any insurer by the commissioner that the insurer has failed to
			 adhere to its RBC Plan or Revised RBC Plan and that such failure has a
			 substantial adverse effect on the ability of the insurer to eliminate the
			 Company Action Level Event with respect to the insurer in accordance with its
			 RBC Plan or Revised RBC Plan; or
(4) Notification to an insurer by the
			 commissioner of a Corrective Order with respect to the insurer.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-9 - Supplemental provisions; Exemption

Current through July 10, 2024
(a) The provisions
			 of sections
			 38a-72-1 to
			 38a-72-13,
			 inclusive, are supplemental to any other provisions of the laws and regulations
			 of this state, and shall not preclude or limit any other powers or duties of
			 the commissioner under such laws or regulations, including, but not limited to,
			 Chapter 704c of the General Statutes and sections
			 38a-8-101 to
			 38a-8-104,
			 inclusive.
(b) The commissioner may
			 exempt from the application of sections
			 38a-72-1 to
			 38a-72-13,
			 inclusive, any domestic property and casualty insurer which:
(1) writes direct business only in this
			 state;
(2) writes direct annual
			 premiums of two million dollars ($2,000,000) or less; and
(3) assumes no reinsurance in excess of five
			 percent (5%) of direct premium written.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-10 - Foreign insurers

Current through July 10, 2024
(a) Any foreign
			 insurer shall, upon the written request of the commissioner, submit to the
			 commissioner an RBC Report as of the end of the calendar year just ended the
			 later of:
(1) The date an RBC Report would be
			 required to be filed by a domestic insurer under the provisions of sections
			 38a-72-1 to
			 38a-72-13,
			 inclusive; or
(2) Fifteen (15) days
			 after the request is received by the foreign insurer.
Any foreign insurer shall, at the written request of the
				commissioner, promptly submit to the commissioner a copy of any RBC Plan that
				is filed with the insurance commissioner of any other state.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-11 - Notices

Current through July 10, 2024
All notices by the commissioner to an insurer which may result
				in regulatory action hereunder shall be effective upon dispatch if transmitted
				by registered or certified mail, or in the case of any other transmission shall
				be effective upon the insurer's receipt of such notice.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-12 - Phase-in provision

Current through July 10, 2024
(a) For RBC Reports
			 required to be filed by property and casualty insurers with respect to 1994,
			 the following requirements shall apply in lieu of the provisions of sections
			 38a-72-3,
			 38a-72-4,
			 38a-72-5,
			 and
			 38a-72-6:
(1) In the event of a Company Action Level
			 Event with respect to a domestic insurer, the commissioner shall take no
			 regulatory action hereunder.
(2) In
			 the event of a Regulatory Action Level Event under section
			 38a-72-4(a)
			 (1), (2), or (3) the commissioner shall take the actions required under section
			 38a-72-3.
(3) In the event of a regulatory Action Level
			 Event under section
			 38a-72-4(a)
			 (4), (5), (6), (7), (8), or (9) or an Authorized Control Level Event, the
			 commissioner shall take the actions required under section
			 38a-72-4
			 with respect to the insurer.
(4) In
			 the event of a Mandatory Control Level Event with respect to an insurer, the
			 commissioner shall take the actions required under section
			 38a-72-5
			 with respect to the insurer.
Connecticut Administrative Code › Title 38a - Insurance Department › 72 - Risk Based Capital For Insurers › Section 38a-72-13 - Severability

Current through July 10, 2024
If any provision of sections
				38a-72-1 to
				38a-72-13, inclusive, or the application thereof to any person or circumstance,
				is held invalid, such determination shall not affect the provisions or
				applications of sections
				38a-72-1 to
				38a-72-13, inclusive, which can be given effect without the invalid provision
				or application, and to that end the above-referenced provisions are
				severable.
Connecticut Administrative Code › Title 38a - Insurance Department › 72a - Life Reinsurance Agreements › Section 38a-72a-1 - Preamble

Current through July 10, 2024
The State of Connecticut Insurance Department recognizes that
				licensed insurers routinely enter into reinsurance agreements that yield
				legitimate relief to the ceding insurer from strain to surplus. However, it is
				improper for a licensed insurer, in the capacity of ceding insurer, to enter
				into reinsurance agreements for the principal purpose of producing significant
				surplus aid for the ceding insurer, typically on a temporary basis, while not
				transferring all of the significant risks inherent in the business being
				reinsured. In substance and effect, the expected potential liability to the
				ceding insurer remains basically unchanged by the reinsurance transaction,
				notwithstanding certain risk elements in the reinsurance agreement, such as
				catastrophic mortality or extraordinary survival. The terms of such agreements
				referred to herein and described in Section
				38a-72a-3
				of these regulations would violate Sections
				38a-53
				and
				38a-56
				of the General Statutes relating to financial statements which do not properly
				reflect the financial condition of the ceding insurer, and Sections
				38a-85
				and
				38a-86
				of the General Statutes relating to reinsurance reserve credits (thus resulting
				in a ceding insurer improperly reducing liabilities or establishing assets for
				reinsurance ceded), and may create a situation that may render the insurer
				financially hazardous to policyholders and the people of this
				State.
Connecticut Administrative Code › Title 38a - Insurance Department › 72a - Life Reinsurance Agreements › Section 38a-72a-2 - Scope

Current through July 10, 2024
These regulations, sections
				38a-72a-1 to
				38a-72a-5,
				inclusive, shall apply to all domestic life and accident and health insurers
				and to all other licensed life and accident and health insurers which are not
				subject to a substantially similar regulation in their domiciliary state. These
				regulations shall also similarly apply to licensed property and casualty
				insurers with respect to their accident and health business. These regulations
				shall not apply to assumption reinsurance, yearly renewable term reinsurance or
				certain nonproportional reinsurance such as stop loss or catastrophe
				reinsurance.
Connecticut Administrative Code › Title 38a - Insurance Department › 72a - Life Reinsurance Agreements › Section 38a-72a-4 - Written agreements

Current through July 10, 2024
(a) No reinsurance
			 agreement or amendment to any agreement may be used to reduce any liability or
			 to establish any asset in any financial statement filed with the Department,
			 unless the agreement, amendment or a binding letter of intent has been duly
			 executed by both parties no later than the "as of date" of the financial
			 statement.
(b) In the case of a
			 letter of intent, a reinsurance agreement or an amendment to a reinsurance
			 agreement must be executed within a reasonable period of time, not exceeding
			 ninety (90) days from the execution date of the letter of intent, in order for
			 credit to be granted for the reinsurance ceded.
(c) The reinsurance agreement shall contain
			 provisions which provide that:
(1) The
			 agreement shall constitute the entire agreement between the parties with
			 respect to the business being reinsured thereunder and that there are no
			 understandings between the parties other than as expressed in the agreement;
			 and
(2) Any change or modification
			 to the agreement shall be null and void unless made by amendment to the
			 agreement and signed by both parties.
Connecticut Administrative Code › Title 38a - Insurance Department › 72a - Life Reinsurance Agreements › Section 38a-72a-5 - Existing agreements

Current through July 10, 2024
Insurers subject to this regulation shall reduce to zero by
				December 31, 1995 any reserve credits or assets established with respect to
				reinsurance agreements entered into prior to the effective date of this
				regulation which, under the provisions of this regulation would not be entitled
				to recognition of the reserve credits or assets; provided, however, that the
				reinsurance agreements shall have been in compliance with the laws or
				regulations in existence immediately preceding the effective date of this
				regulation.
Connecticut Administrative Code › Title 38a - Insurance Department › 78 - Connecticut Standard Valuation Law Actuarial Opinion and Memorandum › Section 38a-78-1 - Purpose

Current through July 10, 2024
The purpose of sections 38a-78-1 to
				38a-78-9,
				inclusive, of the Regulations of Connecticut State Agencies is to
				prescribe:
(a) requirements for
			 statements of actuarial opinion that are to be submitted in accordance with
			 subsection (b) of section
			 38a-78
			 of the Standard Valuation Law, and for memoranda in support thereof;
(b) rules applicable to the appointment of an
			 appointed actuary; and
(c) guidance
			 as to the meaning of "adequacy of reserves".
Connecticut Administrative Code › Title 38a - Insurance Department › 78 - Connecticut Standard Valuation Law Actuarial Opinion and Memorandum › Section 38a-78-2 - Authority

Current through July 10, 2024
This regulation is promulgated pursuant to the authority vested
				in the insurance commissioner of the State of Connecticut under sections
				38a-78(b),
				38a-(8)(c) and 38a-614(9) of the Connecticut General
				Statutes.