reglab/statecodes huggingface dataset:
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.010 - DEFINITIONS

Current through August 31, 2023
01.
Affiliate
. Is a person that
			 directly, or indirectly through one (1) or more intermediaries, controls, or is
			 controlled by, or is under common control with, the person specified.
			 (3-31-22)
02.
Audit
			 Committee
. 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, and 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 (1) or more of these controlled insurers solely for the
			 purposes of this rule at the election of the controlling person. Refer to
			 Subsection 021.05 of this rule, for
			 exercising this election. If an Audit committee is not designated by the
			 insurer, the insurer's entire board of directors constitutes the Audit
			 committee. (3-31-22)
03.
Audited Financial Report
. Includes those items specified in
			 Section 012 of this
			 rule. (3-31-22)
04.
Indemnification
. 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
			 knowing or other misrepresentations made by the insurer or its representatives.
			 (3-31-22)
05.
Group of
			 Insurers
. Those licensed insurers included in the reporting requirements
			 of Title 41, Chapter 38, Idaho Code, or a set of insurers as identified by
			 management, for the purpose of assessing the effectiveness of Internal control
			 over financial reporting. (3-31-22)
06.
Internal Control over Financial
			 Reporting
. A process effected by an entity's board of directors,
			 management and other personnel providing reasonable assurance of the
			 reliability of the financial statements, such as those items specified in
			 Subsections 012.02 through
			 012.07 of this rule, and
			 includes those policies and procedures that: (3-31-22)
a. Pertain to the maintenance of records
			 that, in reasonable detail, accurately and fairly reflect the transactions and
			 dispositions of assets; (3-31-22)
b. Provide reasonable assurance that
			 transactions are recorded as necessary to permit preparation of the financial
			 statements, such as those items specified in Subsections
			 012.02 through
			 012.07 of this rule, and that
			 receipts and expenditures are being made only in accordance with authorizations
			 of management and directors; and (3-31-22)
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, such
			 as those items specified in Subsections
			 012.02 through
			 012.07 of this rule.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.011 - GENERAL REQUIREMENTS RELATED TO FILING AND EXTENSIONS FOR FILING OF ANNUAL AUDITED FINANCIAL REPORTS AND AUDIT COMMITTEE APPOINTMENT

Current through August 31, 2023
01.
Annual Audit Filing Date
.
			 All insurers will have an annual audit by an independent certified public
			 accountant and file an audited financial report with the Director on or before
			 June 1 for the year ended December 31 immediately preceding. The Director may
			 require an insurer to file an audited financial report earlier than June 1 with
			 ninety (90) days advance notice. (3-31-22)
02.
Request for Extension
.
			 Extensions of the June 1 filing date may be granted by the Director for thirty
			 (30) day periods upon a showing by the insurer and its independent certified
			 public accountant of the reasons for the request and a determination by the
			 Director of good cause for an extension. The request for extension needs to be
			 submitted in writing at least ten (10) days prior to the due date in sufficient
			 detail to permit the Director to make an informed decision with respect to the
			 extension. If an extension is granted, an extension of thirty (30) days is also
			 granted to the filing of Management's Report of Internal Control over Financial
			 Reporting. (3-31-22)
03.
Designation of Audit Committee
. Every insurer needs to file an
			 annual audited financial report pursuant to this chapter will designate an
			 Audit committee, as defined in Section
			 010. The Audit committee of an
			 entity controlling an insurer may be deemed to be the insurer's Audit committee
			 for purposes of this rule at the controlling person's election.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.012 - CONTENTS OF ANNUAL AUDITED FINANCIAL REPORT

Current through August 31, 2023
01.
Contents of Report
. The annual audited financial report will
			 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. The annual Audited financial report will
			 include the following: (3-31-22)
a. Report of
			 independent certified public accountant; (3-31-22)
b. Balance sheet reporting admitted assets,
			 liabilities, capital and surplus; (3-31-22)
c. Statement of operations;
			 (3-31-22)
d. Statement of cash
			 flow; (3-31-22)
e. Statement of
			 changes in capital and surplus; (3-31-22)
f. Notes to financial statements, which will
			 those prescribed by the appropriate NAIC Annual Statement Instructions and NAIC
			 Accounting Practices and Procedures Manual. The notes will include a
			 reconciliation of differences, if any, between the audited statutory financial
			 statements and the annual statement filed pursuant to Section
			 41-335, Idaho Code, or other
			 applicable section of Idaho Code with a written description of the nature of
			 these differences. (3-31-22)
g. The
			 financial statements included in the audited financial report will be prepared
			 in a form and using language and groupings substantially the same as the
			 relevant sections of the annual statement of the insurer filed with the
			 Director. The financial statement will be comparative, presenting the amounts
			 as of December 31 of the current year and the amounts as of the immediately
			 preceding December 31. (In the first year in which an insurer needs to file an
			 audited financial report, the comparative data may be omitted.)
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.014 - QUALIFICATIONS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through August 31, 2023
01.
In Good Standing
. The
			 Director will not recognize any person or firm as a qualified independent
			 certified public accountant that is not in good standing with the AICPA 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 has either directly or
			 indirectly entered into an agreement of indemnity or release from liability
			 ("indemnification") with respect to the insurer's audit. (3-31-22)
02.
Conformance with Ethical and
			 Professional Standards
. Except as otherwise provided in this rule, the
			 Director will recognize an independent certified public accountant as qualified
			 if the accountant conforms to the standards contained in the Code of
			 Professional Ethics of the AICPA and Rules and Regulations and Code of Ethics
			 and Rules of Professional Conduct of the Idaho Board of Public Accountancy, or
			 similar code. (3-31-22)
03.
Resolution of Disputes and Delinquency Proceedings
. A qualified
			 independent certified public accountant may enter into an agreement with an
			 insurer to have audit-related disputes resolved by mediation or arbitration. In
			 the event of a delinquency proceeding commenced against the insurer under Title
			 41, Chapter 33, the mediation or arbitration provisions operates at the option
			 of the statutory successor. (3-31-22)
04.
Capacity to Render Report for
			 Consecutive Years
. The lead (or coordinating) audit partner (primarily
			 responsible for the audit) cannot act in the capacity for more than five (5)
			 consecutive years. The person will be disqualified from acting in that or a
			 similar capacity for the same company or its insurance subsidiaries or
			 affiliates for a period of five (5) consecutive years. An insurer may make
			 application to the Director for relief from the above requirement due to
			 unusual circumstances. Application should be made at least thirty (30) days
			 before the end of the calendar year. The Director may consider the following
			 factors in determining if the relief should be granted: (3-31-22)
a. Number of partners, expertise of the
			 partners or the number of insurance clients in the currently registered firm;
			 (3-31-22)
b. Premium volume; or
			 (3-31-22)
c. Number of
			 jurisdictions in which the insurer transacts business.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.015 - CONSOLIDATED OR COMBINED AUDITS

Current through August 31, 2023
An insurer may make written application to the Director 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 that utilizes a pooling or one hundred percent
				(100%) 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 will be filed with the report, as follows: (3-31-22)
01.
Worksheet
. Amounts shown on
			 the consolidated or combined Audited financial report will be shown on the
			 worksheet; (3-31-22)
02.
Separate Amounts
. Amounts for each insurer subject to this section
			 will be stated separately; (3-31-22)
03.
Noninsurance Operations
.
			 Noninsurance operations may be shown on the worksheet on a combined or
			 individual basis; (3-31-22)
04.
Explanations of Consolidating and Eliminating Entries
.
			 Explanations of consolidating and eliminating entries will be included; and
			 (3-31-22)
05.
Reconciliation
. A reconciliation will be included of any
			 differences between the amounts shown in the individual insurer columns of the
			 worksheet and comparable amounts shown on the annual statement of the insurers.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.016 - SCOPE OF AUDIT AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through August 31, 2023
Financial statements furnished pursuant to Section
				012 hereof will be examined by the
				independent certified public accountant. The audit of the insurer's financial
				statements will be conducted in accordance with generally accepted auditing
				standards. The independent certified public accountant should obtain an
				understanding of internal control sufficient to plan the audit. To the extent
				prescribed by the standards of his profession, for those insurers prescribed to
				file a Management's Report of Internal Control over Financial Reporting
				pursuant to Section 023, the
				independent certified public accountant should consider (as that term is
				defined in generally accepted auditing standards) the most recently available
				report in planning and performing the audit of the statutory financial
				statements. Consideration will be given to the other 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. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.017 - NOTIFICATION OF ADVERSE FINANCIAL CONDITION

Current through August 31, 2023
The insurer needed to furnish the annual Audited financial
				report will require the independent certified public accountant to report, in
				writing, within five (5) business days to 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
				Director as of the balance sheet date currently under audit or that the insurer
				does not meet the minimum capital and surplus requirements of Title 41, Idaho
				Code, as of that date. An insurer that has received a report pursuant to this
				paragraph will forward a copy of the report to the Director within five (5)
				business days of receipt of the report and will provide the independent
				certified public accountant making the report with evidence of the report being
				furnished to the Director. If the independent certified public accountant fails
				to receive such evidence within the mandatory five (5) business day period, the
				independent certified public accountant will furnish to the Director a copy of
				its report within the next five (5) business days. No independent certified
				public accountant will be liable in any manner to any person for any statement
				made in connection with Section
				017 if the statement is made in
				good faith in compliance with Section
				017. If the accountant, subsequent
				to the date of the Audited financial report filed pursuant to this rule,
				becomes aware of facts which might have affected his report, the Director notes
				the obligation of the accountant to take action as prescribed by the standards
				of his profession. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.018 - COMMUNICATION OF INTERNAL CONTROL RELATED MATTERS NOTED IN AN AUDIT

Current through August 31, 2023
In addition to the annual audited financial report, each
				insurer will furnish the Director with a written communication as to any
				unremediated material weaknesses in its Internal control over financial
				reporting noted during the audit. Such communication will be prepared by the
				accountant within sixty (60) days after the filing of the annual audited
				financial report, and will contain a description of any unremediated material
				weakness (as the term material weakness is defined by the standards of his
				profession) as of December 31 immediately preceding (so as to coincide with the
				audited financial report discussed in Subsection
				011.01, of this rule) in the
				insurer's Internal control over financial reporting noted by the accountant
				during the course of their audit of the financial statements. If no
				unremediated material weaknesses were noted, the communication should so state.
				The insurer needs 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 communication. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.019 - ACCOUNTANT'S LETTER OF QUALIFICATION

Current through August 31, 2023
The accountant will furnish the insurer in connection with, and
				for inclusion in, the filing of the annual audited financial report, a letter
				stating: (3-31-22)
01.
Independence
. That the accountant is independent with respect to
			 the insurer and conforms to the standards of his profession as contained in the
			 Code of Professional Ethics and pronouncements of the AICPA and the Rules of
			 Professional Conduct of the Idaho Board of Public Accountancy, or similar code;
			 (3-31-22)
02.
Background and
			 Experience
. The background and experience in general, and the experience
			 in audits of insurers of the staff assigned to the engagement and whether each
			 is an independent certified public accountant. Nothing within this rule will be
			 construed as prohibiting the accountant from utilizing such staff as he deems
			 appropriate where use is consistent with the standards prescribed by generally
			 accepted auditing standards; (3-31-22)
03.
Compliance with Rule
. That
			 the accountant understands the annual audited financial report and his opinion
			 thereon will be filed in compliance with this rule and that the Director will
			 be relying on this information in the monitoring and regulation of the
			 financial position of insurers; (3-31-22)
04.
Consent to Requirements of Section
			 020
. That the accountant
			 consents to the requirements of Section
			 020 of this rule and that the
			 accountant consents and agrees to make available for review by the Director, or
			 the Director's designee or appointed agent, the workpapers, as defined in
			 Section 020;
			 (3-31-22)
05.
Properly
			 Licensed
. A representation that the accountant is properly licensed by
			 an appropriate state licensing authority and is a member in good standing in
			 the AICPA; and (3-31-22)
06.
Compliance with Section
			 014
. A representation that
			 the accountant is in compliance with the requirements of Section
			 014 of this rule.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.020 - DEFINITION, AVAILABILITY AND MAINTENANCE OF CERTIFIED PUBLIC ACCOUNTANTS WORKPAPERS

Current through August 31, 2023
Workpapers are the records kept by the independent certified
				public accountant of the procedures followed, the tests performed, the
				information obtained, and the conclusions reached pertinent to the accountant's
				audit of the financial statements of an insurer. Workpapers, accordingly, may
				include audit planning documentation, work programs, analyses, memoranda,
				letters of confirmation and representation, abstracts of company documents and
				schedules or commentaries prepared or obtained by the independent certified
				public accountant in the course of his audit of the financial statements of an
				insurer and which support the accountant's opinion. Every insurer needs to file
				an Audited financial report pursuant to this rule, will require the accountant
				to make available for review by the insurance department examiners, all
				workpapers prepared in the conduct of the accountant's audit and any
				communications related to the audit between the accountant and the insurer, at
				the office of the insurer, at the insurance department or at any other
				reasonable place designated by the Director. The insurer will require that the
				accountant retain the audit workpapers and communications until the insurance
				department has filed a report on examination covering the period of the audit
				but no longer than seven (7) years from the date of the audit report. In the
				conduct of the aforementioned periodic review by the insurance. department
				examiners, it will be agreed that photocopies of pertinent audit workpapers may
				be made and retained by the department. Such reviews by the department
				examiners will be considered investigations and all working papers and
				communications obtained during the course of such investigations will be
				afforded the same confidentiality as other examination workpapers generated by
				the department. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.022 - CONDUCT OF INSURER IN CONNECTION WITH THE PREPARATION OF REQUISITE REPORTS AND DOCUMENTS

Current through August 31, 2023
01.
False or
			 Misleading Statements
. No director or officer of an insurer may,
			 directly or indirectly make or cause to be made a materially false or
			 misleading statement to an accountant in connection with any audit, review or
			 communication prescribed under this chapter. (3-31-22)
02.
Omissions
. No director or
			 officer of an insurer may, directly or indirectly omit to state, or cause
			 another person to omit to state, any material fact necessary in order to make
			 statements made, in light of the circumstances under which the statements were
			 made, not misleading to an accountant in connection with any audit, review or
			 communication prescribed under this chapter. (3-31-22)
03.
Coercion
. No officer or
			 director of an insurer, or any other person acting under the direction thereof,
			 may directly or indirectly take any action to coerce, manipulate, mislead or
			 fraudulently influence any accountant engaged in the performance of an audit
			 pursuant to this chapter if that person knew or should have known that the
			 action, if successful, could result in rendering the insurer's financial
			 statements materially misleading. For purposes of Subsection
			 022.03 of this rule, actions
			 that, "if successful, could result in rendering the insurer's financial
			 statements materially misleading" include, but are not limited to, actions
			 taken at any time with respect to the professional engagement period to coerce,
			 manipulate, mislead or fraudulently influence an accountant: (3-31-22)
a. To issue or reissue a report on an
			 insurer's financial statements that is not warranted in the circumstances (due
			 to material violations of statutory accounting principles prescribed by the
			 Director, generally accepted auditing standards, or other professional or
			 regulatory standards); (3-31-22)
b.
			 Not to perform audit, review or other procedures prescribed by generally
			 accepted auditing standards or other professional standards;
			 (3-31-22)
c. Not to withdraw an
			 issued report; or (3-31-22)
d. Not
			 to communicate matters to an insurer's Audit committee.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.024 - EXEMPTIONS AND EFFECTIVE DATES

Current through August 31, 2023
01.
Exemptions Not Otherwise Provided
. Upon written application of any
			 insurer, the Director may grant an exemption from compliance with any and all
			 provisions of this rule if the Director finds, upon review of the application,
			 that compliance with this rule 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 from this chapter, the
			 insurer may request in writing a hearing on its application for an exemption.
			 The hearing will be held in accordance with the IDAPA 04.11.01, "Idaho Rules of
			 Administrative Procedure of the Attorney General," pertaining to administrative
			 hearing procedures. (3-31-22)
02.
Alternate Effective Date for Section
			 021 [Requirements for Audit
			 Committees]
. An insurer or group of insurers that is not prescribed to
			 have independent Audit committee members or only a majority of independent
			 Audit committee members (as opposed to a supermajority) because the total
			 written and assumed premium is below the threshold and subsequently becomes
			 subject to one (1) of the independence requirements due to changes in premium
			 will have one (1) year following the year the threshold is exceeded to comply
			 with the independence requirements. Likewise, an insurer that becomes subject
			 to one (1) of the independence requirements as a result of a business
			 combination will have one (1) calendar year following the date of acquisition
			 or combination to comply with the independence requirements.
			 (3-31-22)
03.
Effective Date
			 for Section 023 [Management's Report of
			 Internal Control Over Financial Reporting]
. An insurer or group of
			 insurers that is not prescribed to file a report because the total written
			 premium is below the threshold and subsequently becomes subject to the
			 reporting requirements will have two (2) years following the year the threshold
			 is exceeded to file a report. Likewise, an insurer acquired in a business
			 combination will have two (2) calendar years following the date of acquisition
			 or combination to comply with the reporting requirements. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.025 - CANADIAN AND BRITISH COMPANIES

Current through August 31, 2023
01.
Annual
			 Audited Financial Report
. In the case of Canadian and British insurers,
			 the annual audited financial report is 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. (3-31-22)
02.
Letter Requisite in Section
			 013
. For such insurers, the
			 letter prescribed in Section
			 013 states that the accountant is
			 aware of the requirements relating to the annual Audited statement filed with
			 the Director pursuant to section
			 011 and affirms that the opinion
			 expressed is in conformity with such requirements. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.026 - INTERNAL AUDIT FUNCTION REQUIREMENTS

Current through August 31, 2023
01.
Exemption
. An insurer is exempt from the requirements of this
			 section if: (3-31-22)
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, less than five hundred
			 million dollars ($500,000,000); and (3-31-22)
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, less than one billion dollars ($1,000,000,000).
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.04 - ANNUAL FINANCIAL REPORTING › Section 18.07.04.027 - MINIMUM RESERVE STANDARDS

Current through August 31, 2023
In addition to the requirements in this rule, unless otherwise
				prescribed or permitted, the minimum reserve standards for individual and group
				health insurance contracts set forth in the NAIC Accounting Practices and
				Procedures Manual apply to all individual and group health (disability)
				insurance coverages including single premium credit disability insurance. All
				other credit insurance is not subject to this section. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.05 - DIRECTOR'S AUTHORITY FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 18.07.05.000 - LEGAL AUTHORITY

Current through August 31, 2023
Title 41, Chapters 2, 3, and 33, Sections
				41-211,
				41-327 and
				41-3309, Idaho Code.
				(3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.05 - DIRECTOR'S AUTHORITY FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 18.07.05.001 - TITLE AND SCOPE

Current through August 31, 2023
01.
Title
. IDAPA 18.07.05, "Director's Authority for Companies Deemed
			 to be in Hazardous Financial Condition." (3-31-22)
02.
Scope
. This rule establishes
			 standards that the Director may use for identifying insurers found to be in
			 such condition as to render the continuance of their business hazardous to the
			 public or to holders of their policies or certificates of insurance. This rule
			 cannot be interpreted to limit the powers granted the Director by any laws or
			 parts of laws of this state, nor supersedes any laws or parts of laws of this
			 state. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.05 - DIRECTOR'S AUTHORITY FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 18.07.05.002 - INCORPORATION BY REFERENCE

Current through August 31, 2023
This rule incorporates by reference the full text of the
				National Association of Insurance Commissioners (NAIC) Financial Condition
				Examiners Handbook and the NAIC Annual Statement Instructions and Accounting
				Practices and Procedures Manual, pursuant to Sections
				41-223 and
				41-335, Idaho Code.
				(3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.05 - DIRECTOR'S AUTHORITY FOR COMPANIES DEEMED TO BE IN HAZARDOUS FINANCIAL CONDITION › Section 18.07.05.012 - DIRECTOR'S AUTHORITY

Current through August 31, 2023
01.
Determination of Financial Condition
. For the purposes of making a
			 determination of an insurer's financial condition under this rule, the Director
			 may: (3-31-22)
a. Disregard any credit or
			 amount receivable resulting from transactions with a reinsurer which is
			 insolvent, impaired or otherwise subject to a delinquency proceeding;
			 (3-31-22)
b. Make appropriate
			 adjustments, including disallowance, to asset values attributable to
			 investments in or transactions with parents, subsidiaries, or affiliates,
			 consistent with the NAIC Accounting Policies and Procedures Manual, state laws,
			 and regulations; (3-31-22)
c.
			 Refuse to recognize the stated value of accounts receivable if the ability to
			 collect receivables is highly speculative in view of the age of the account or
			 the financial condition of the debtor; (3-31-22)
d. Increase the insurer's liability in an
			 amount equal to any contingent liability, pledge, or guarantee not otherwise
			 included if there is a substantial risk that the insurer will be called upon to
			 meet the obligation undertaken within the next twelve (12) month period.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.06 - RULES GOVERNING LIFE AND HEALTH REINSURANCE AGREEMENTS › Section 18.07.06.000 - LEGAL AUTHORITY

Current through August 31, 2023
Title 41, Chapters 2, 3, and 5, Sections
				41-211,
				41-335,
				41-510,
				41-511,
				41-512 and
				41-514, Idaho Code.
				(3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.06 - RULES GOVERNING LIFE AND HEALTH REINSURANCE AGREEMENTS › Section 18.07.06.001 - TITLE, PURPOSE AND SCOPE

Current through August 31, 2023
01.
Title
. IDAPA 18.07.06, "Rules Governing Life and Health
			 Reinsurance Agreements." (3-31-22)
02.
Purpose
. To set forth
			 standards for Reinsurance Agreements involving life insurance, annuities, or
			 accident and sickness insurance (disability) in order that the financial
			 statements of the life and health and property and casualty insurers writing
			 health business and utilizing such agreements properly reflect the financial
			 condition of the ceding and assuming insurer. (3-31-22)
a. The Department recognizes that licensed
			 insurers routinely enter into reinsurance agreements that yield legitimate
			 relief to the ceding insurer from strain to surplus. (3-31-22)
b. 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
			 or 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 011 violate
			 Idaho Code Sections
			 41-1306,
			 41-515,
			 41-308(3),
			 41-327 and
			 41-3309:
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.06 - RULES GOVERNING LIFE AND HEALTH REINSURANCE AGREEMENTS › Section 18.07.06.012 - WRITTEN AGREEMENTS

Current through August 31, 2023
01.
Execution
			 Date
. 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. (3-31-22)
02.
Letter of Intent
. In the
			 case of a letter of intent, a reinsurance agreement or an amendment to a
			 reinsurance agreement needs to 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.
			 (3-31-22)
03.
Requisite
			 Provisions
. The reinsurance agreement will contain provisions that
			 provide that: (3-31-22)
a. The agreement will
			 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
			 (3-31-22)
b. Any change or
			 modification to the agreement will be null and void unless made by amendment to
			 the agreement and signed by both parties. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.06 - RULES GOVERNING LIFE AND HEALTH REINSURANCE AGREEMENTS › Section 18.07.06.013 - EXISTING AGREEMENTS

Current through August 31, 2023
Insurers subject to this rule will not be allowed to recognize
				any reserve credits or assets established with respect to reinsurance
				agreements entered into prior to the effective date of this rule which, under
				the provisions of this rule would not be entitled to recognition of the reserve
				credits or assets; provided, however, that the reinsurance agreements will have
				been in compliance with laws or rules in existence immediately preceding the
				effective date of this rule. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.08 - PROPERTY AND CASUALTY ACTUARIAL OPINION RULE › Section 18.07.08.001 - TITLE AND SCOPE

Current through August 31, 2023
01.
Title
. IDAPA 18.07.08, "Property and Casualty Actuarial Opinion
			 Rule." (3-31-22)
02.
Scope
. This rule applies to annual statements filed with the
			 Director as of the end of the first full calendar year following the effective
			 date of the rule, and applies to all property and casualty companies doing
			 business in this State. This rule is intended to provide the Director with
			 additional means to monitor an insurer's loss reserves in accordance with
			 Section 41-610, Idaho Code.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.08 - PROPERTY AND CASUALTY ACTUARIAL OPINION RULE › Section 18.07.08.021 - ACTUARIAL OPINION OF RESERVES AND SUPPORTING DOCUMENTATION

Current through August 31, 2023
01.
Statement of Actuarial Opinion,
			 Opinion Summary and Actuarial Report and Work Papers
. (3-31-22)
a. Every property and casualty insurance
			 company doing business in this state, unless otherwise exempted by the
			 domiciliary commissioner, will annually submit the opinion of an Appointed
			 Actuary entitled "Statement of Actuarial Opinion." This opinion will be filed
			 in accordance with the appropriate NAIC Property and Casualty Annual Statement
			 Instructions. (3-31-22)
b. Every
			 property and casualty insurance company domiciled in this state that is needs
			 to submit a Statement of Actuarial Opinion will annually submit an Actuarial
			 Opinion Summary, written by the company's Appointed Actuary. This Actuarial
			 Opinion Summary will be filed in accordance with the appropriate NAIC Property
			 and Casualty Annual Statement Instructions and will be considered to be a
			 document supporting the Actuarial Opinion prescribed in Subsection
			 021.01 of this chapter.
			 (3-31-22)
c. A company licensed but
			 not domiciled in this state will provide the Actuarial Opinion Summary upon
			 request. (3-31-22)
d. An Actuarial
			 Report and underlying work papers as prescribed by the appropriate NAIC
			 Property and Casualty Annual Statement Instructions will be prepared to support
			 each Actuarial Opinion. (3-31-22)
e. If the insurance company fails to provide
			 a supporting Actuarial Report or work papers at the request of the Director,
			 or, after review, the Director determines the supporting Actuarial Report or
			 work papers provided by the insurance company do not comply with the NAIC
			 Property and Casualty Annual Statement Instructions or are otherwise
			 unacceptable, the Director may engage a qualified actuary at the expense of the
			 company to review the opinion and the basis for the opinion, and to prepare the
			 supporting Actuarial Report or work papers. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.08 - PROPERTY AND CASUALTY ACTUARIAL OPINION RULE › Section 18.07.08.022 - CONFIDENTIALITY

Current through August 31, 2023
01.
The Statement of Actuarial
			 Opinion
. Will be provided with the Annual Statement in accordance with
			 the appropriate NAIC Property and Casualty Annual Statement Instructions and
			 treated as a public document. (3-31-22)
02.
Actuarial Report
. (3-31-22)
a. Documents, materials or other information
			 in the possession or control of the Department that are considered an Actuarial
			 Report, work papers or Actuarial Opinion Summary provided in support of the
			 opinion, and any other material provided by the company to the Director in
			 connection with the Actuarial Report, work papers or Actuarial Opinion Summary,
			 will be considered to be exempt from public disclosure under Section
			 74-107(5), Idaho
			 Code, of the Idaho Public Records Act. (3-31-22)
b. This provision cannot be construed to
			 limit the Director's authority to release the documents to the Actuarial Board
			 for Counseling and Discipline (ABCD) so long as the material is needed for the
			 purpose of professional disciplinary proceedings and that the ABCD establishes
			 procedures satisfactory to the Director regarding disclosure of the documents,
			 nor be construed to limit the Director's authority to use the documents,
			 materials or other information in furtherance of any regulatory or legal action
			 brought as part of the Director's official duties.
			 (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.09 - LIFE AND HEALTH ACUTARIAL OPINION AND MEMORANDUM RULE › Section 18.07.09.001 - SCOPE

Current through August 31, 2023
01.
Application of Rule
. This
			 rule applies to all life insurance companies and fraternal benefit societies
			 doing business in Idaho and to all life insurance companies and fraternal
			 benefit societies that are authorized to reinsure life insurance, annuities or
			 accident and health insurance business in Idaho. This regulation will be
			 applied to allow the appointed actuary to use their professional judgment in
			 performing the asset analysis and developing the actuarial opinion and
			 supporting memoranda, consistent with actuarial standards of practice. But the
			 Director may specify methods of actuarial analysis and actuarial assumptions
			 that the Director deems necessary for an acceptable opinion to be rendered on
			 the adequacy of reserves and related items. (4-6-23)
02.
Application to All Annual
			 Statements
. This rule applies to all annual statements filed with the
			 Director. A statement of opinion on the adequacy of reserves and related
			 actuarial items based on an asset adequacy analysis per Section
			 022, and a supporting memorandum
			 per Section 023, will be needed each year.
			 (4-6-23)
03.
Purpose
.
			 This rule prescribes: (4-6-23)
a. Guidelines
			 and standards for statements of actuarial opinion which are to be submitted per
			 Section 41-612(12), Idaho
			 Code, and for supporting memoranda; (4-6-23)
b. Rules for appointing an appointed actuary;
			 and (4-6-23)
c. Guidelines on the
			 meaning of adequacy of reserves. (4-6-23)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.09 - LIFE AND HEALTH ACUTARIAL OPINION AND MEMORANDUM RULE › Section 18.07.09.010 - DEFINITIONS

Current through August 31, 2023
01.
Actuarial Opinion
. An
			 Appointed Actuary's opinion on reserve adequacy and related actuarial items
			 based on an asset adequacy test per Section
			 022 and presently accepted
			 actuarial standards. (4-6-23)
02.
Actuarial Standards Board
. The board established by the American
			 Academy of Actuaries to develop standards of actuarial practice.
			 (4-6-23)
03.
Asset Adequacy
			 Analysis
. An analysis that meets the standards and requirements in
			 Subsection 021.04. (4-6-23)
04.
Company
. A life insurance
			 company, fraternal benefit society or reinsurer subject to this rule.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.09 - LIFE AND HEALTH ACUTARIAL OPINION AND MEMORANDUM RULE › Section 18.07.09.021 - GENERAL REQUIREMENTS

Current through August 31, 2023
01.
Submitting Statement of Actuarial Opinion
. (4-6-23)
a. For each year, starting with the year in
			 which this rule takes effect, the annual statement's first page will include or
			 attach the statement of an appointed actuary, entitled "Statement of Actuarial
			 Opinion," setting forth an opinion on reserves and related actuarial items held
			 in support of policies and contracts, per Section
			 022. (4-6-23)
b. Upon written request by the company, the
			 Director may grant an extension to submit the statement of actuarial opinion.
			 (4-6-23)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.09 - LIFE AND HEALTH ACUTARIAL OPINION AND MEMORANDUM RULE › Section 18.07.09.022 - STATEMENT OF ACTUARIAL OPINION BASED ON AN ASSET ADEQUACY ANALYSIS

Current through August 31, 2023
01.
General Description
. The
			 statement of actuarial opinion submitted under this section will consist of;
			 (4-6-23)
a. A paragraph identifying the
			 appointed actuary and qualifications; (4-6-23)
b. A scope paragraph identifying the subjects
			 on which an opinion is to be expressed and describing the scope of the
			 appointed actuary's work, including a tabulation delineating the reserves and
			 related actuarial items that have been analyzed for asset adequacy and the
			 analysis method, and identifying the reserves and related actuarial items
			 covered by the opinion that have not been so analyzed; (4-6-23)
c. A reliance paragraph describing those
			 areas, if any, where the appointed actuary has deferred to other experts in
			 developing data, procedures or assumptions, (e.g., anticipated cash flows from
			 currently owned assets, including variation in cash flows according to economic
			 scenarios. Supported by a statement of each such expert in the form prescribed
			 by Subsection 022.05;
			 and (4-6-23)
d. An opinion
			 paragraph expressing the appointed actuary's opinion on the adequacy of the
			 supporting assets to mature the liabilities. (4-6-23)
e. One (1) or more additional paragraphs will
			 be needed in these cases; (4-6-23)
i. If the
			 appointed actuary considers it necessary to state a qualification of his
			 opinion; (4-6-23)
ii. If the
			 appointed actuary needs to disclose an inconsistency between the analysis
			 method or basis of asset allocation used on the prior opinion date and those
			 used for this opinion; (4-6-23)
iii. If the appointed actuary needs to
			 disclose whether additional reserves of the prior opinion date are released as
			 of this opinion date, and the extent of the release; or (4-6-23)
iv. If the appointed actuary chooses to add a
			 paragraph briefly describing the assumptions forming the basis for the
			 actuarial opinion. (4-6-23)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.10 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 18.07.10.001 - TITLE AND SCOPE

Current through August 31, 2023
01.
Title
. This rule is titled IDAPA 18.07.10, "Corporate Governance
			 Annual Disclosure." (3-31-22)
02.
Scope
. This rule sets forth procedures for filing and the
			 necessary content of the Corporate Governance Annual Disclosure (CGAD) to carry
			 out the provisions of Title 41, Chapter 64, Idaho Code. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.10 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 18.07.10.002 - INCORPORATION BY REFERENCE

Current through August 31, 2023
The most recent National Association of Insurance Commissioners
				(NAIC) Financial Analysis Handbook (2016 Annual / 2017 Quarterly edition) is
				incorporated by reference into IDAPA 18.07.10. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.10 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 18.07.10.010 - DEFINITIONS

Current through August 31, 2023
01.
Senior Management
. Any
			 corporate officer responsible for reporting information to the board of
			 directors at regular intervals or providing this information to shareholders or
			 regulators and will include, for example and without limitation, the chief
			 executive officer (CEO), chief financial officer (CFO), chief operations
			 officer (COO), chief procurement officer (CPO), chief legal officer (CLO),
			 chief information officer (CIO), chief technology officer (CTO), chief revenue
			 officer (CRO), chief visionary officer (CVO), or any other chief or "C" level
			 executive. (3-31-22)
Idaho Administrative Code › Title IDAPA 18 - Insurance, Department of › Rule 18.07.10 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE › Section 18.07.10.012 - CONTENTS OF CORPORATE GOVERNANCE ANNUAL DISCLOSURE

Current through August 31, 2023
01.
Detail
. The insurer or
			 insurance group will be as descriptive as possible in completing the CGAD, with
			 inclusion of attachments or example documents that are used in the governance
			 process, since these may provide a means to demonstrate the strengths of their
			 governance framework and practices. (3-31-22)
02.
CGAD Considerations
. The
			 CGAD will describe the insurer's or insurance group's corporate governance
			 framework and structure including consideration of the following: (3-31-22)
a. The board and various committees thereof
			 ultimately responsible for overseeing the insurer or insurance group and the
			 level(s) at which that oversight occurs (e.g., ultimate control level,
			 intermediate holding company, legal entity, etc.). The insurer or insurance
			 group will describe and discuss the rationale for the current board size and
			 structure; and (3-31-22)
b. The
			 duties of the board and each of its significant committees and how they are
			 governed (e.g., bylaws, charters, informal mandates, etc.), as well as how the
			 board's leadership is structured, including a discussion of the roles of chief
			 executive officer (CEO) and chairman of the board within the organization.
			 (3-31-22)