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-.17 - Management's Report of Internal Control over Financial Reporting

Current through Rules and Regulations filed through June 27, 2024
(1) Every insurer
				required to file an Audited financial report pursuant to this regulation 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 120-2-60-.03.
				The report shall be filed with the Commissioner along with the Communication of
				Internal Control Related Matters Noted in an Audit described under
				120-2-60-.11. Management's Report
				of Internal Control over Financial Reporting shall be as of December 31
				immediately preceding.
(2)
				Notwithstanding the premium threshold in paragraph 1, the Commissioner 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
				or more of the standards of an insurer deemed to be in hazardous financial
				condition as defined in 120-2-54.
(3) An insurer or a Group of insurers that is
(a) directly subject to Section
				404;
(b) part of a holding company
				system whose parent is directly subject to Section 404;
(c) not directly subject to Section 404 but
				is a SOX Compliant Entity; or
(d) 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 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
				  120-2-60-.05(2)(b) -
				  (g)) 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 (those
				  items included in
				  120-2-60-.05(2)(b) -
				  (g)) 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 (i) a
				  120-2-60-.16 report, or (ii) the
				  Section 404 Report and a
				  120-2-60-.16 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.