Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Accountant" or "independent certified public accountant" means
				an independent certified public accountant or independent accounting firm in
				good standing with the American Institute of Certified Public Accountants
				(AICPA) and all states in which the accountant is licensed to practice. For
				Canadian and British companies, accountant means a Canadian-chartered or
				British-chartered accountant.
"Affiliate" or "affiliated person" of a specific person or
				entity means 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.
"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 Part at the election
				of the controlling person. Refer to Section
				925.140(f)
				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.
"Audited Financial Report" means and includes those items
				specified in Section
				925.50
				of this Part.
"Code" means the Illinois Insurance Code [ 215 ILCS 5 ].
"Dental Service Plan Act" means 215 ILCS 110.
"Department" means the Illinois Department of Insurance.
"Director" means the Director of the Illinois Department of
				Insurance.
"Group of Insurers" means those licensed insurers included in
				the reporting requirements of Article VIII1/2 of the Code, or a set of insurers
				as identified by management, for the purpose of assessing the effectiveness of
				internal control over financial reporting.
"Health Maintenance Organization Act" means 215 ILCS
				125.
"Indemnification" means an agreement of indemnity or a 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 known or other misrepresentations made by the insurer or its
				representatives.
"Independent Board Member" has the same meaning as described in
				Section
				925.140(c).
"Insurer", for purposes of this Part, means a licensed insurer
				or accredited reinsurer as defined in Sections 2(f), (g) and (h) and 173.1 of
				the Code or a Health Maintenance Organization as defined in Section 1-2(9) of
				the Health Maintenance Organization Act, Dental Service Plan as defined in
				Section 4 of the Dental Service Plan Act, or a Limited Health Service
				Organization as defined in Section 1002 of the Limited Health Service
				Organization Act.
"Internal Audit Function" means a function by which a person or
				persons 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.
"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 Section
				925.50(b)(2)
				through (8), and includes those policies and
				procedures that:
Pertain to the maintenance of records that, in reasonable
				detail, accurately and fairly reflect the transactions and dispositions of
				assets;
Provide reasonable assurance that transactions are recorded as
				necessary to permit preparation of the financial statements, i.e., those items
				specified in Section
				925.50(b)(2)
				through (9), and that receipts and
				expenditures are being made only in accordance with authorizations of
				management and directors; and
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 Section
				925.50(b)(2)
				through (9).
"Limited Health Service Organization Act" means 215 ILCS
				130.
"SEC" means the United States Securities and Exchange
				Commission.
"Section 404" means Section 404 of the Sarbanes-Oxley Act of
				2002(
				15 USC
				7262 ).
"Section 404 Report" means Management's Report of Internal
				Control over Financial Reporting as defined by the SEC (
				17 CFR
				240.13a-15(f) ) and the
				related attestation report of the independent certified public accountant as
				described in Section
				925.160.
"SOX Compliant Entity" means an entity that either is required
				to be compliant with, or voluntarily is compliant with, all of the following
				provisions of the Sarbanes-Oxley Act of 2002:
the preapproval requirements of
				15 USC
				78j -l(i);
the audit committee independence requirements of
				15 USC
				78j -l(m)(3); and
the internal control over financial reporting requirements of
				17 CFR
				229.308.