Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 185 - ANNUAL AUDITED FINANCIAL REPORTING › Section 16-185-115 - Management's report of internal control over financial reporting

Current through June, 2024
(a) Every insurer required to file an audited
			 financial report that has annual direct written and assumed premiums, excluding
			 premiums reinsured with the Federal Crop Insurance Corporation and Federal
			 Flood Program, of $500,000,000 or more shall prepare a report of the insurer's
			 or group of insurers' internal control over financial reporting, as these terms
			 are defined in section 16-185-102, Hawaii Administrative Rules The report shall
			 be filed with the commissioner along with the communication of internal control
			 related matters noted in an audit described under section 16-185-110, Hawaii
			 Administrative Rules Management's report of internal control over financial
			 reporting shall be as of the December 31 immediately preceding
(b) Notwithstanding the premium threshold in
			 subsection (a) the commissioner may require an insurer to file management's
			 report of internal control over financial reporting if the insurer is in any
			 risk-based capital level event, as defined in section
			 431:3-401, HRS, or
			 meets any one or more of the standards of an insurer deemed to be in hazardous
			 financial condition as defined in section
			 431:15-103.5,
			 HRS.
(c) An insurer or a group of
			 insurers that is:
(1) Directly subject to
			 section 404;
(2) Part of a holding
			 company system whose parent is directly subject to section 404;
(3) Not directly subject to section 404 but
			 is a SOX compliant entity; or
(4) A
			 member of a holding company system whose parent is not directly subject to
			 section 404 but is a SOX compliant entity; may file its or its parent's section
			 404 report and an addendum in satisfaction of this section's 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
			 section 16-185-104(2) through (7), Hawaii Administrative Rules, were included
			 in the scope of the section 404 report. The addendum shall 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 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 a report required by this section, or the section 404 report and
			 this section's 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.