Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.3 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
The terms and definitions contained herein are intended to
				  provide definitional guidance as the terms are used within this chapter.
"Accountant"
or
"independent
				  certified public accountant"
means an independent certified public
				  accountant or accounting firm in good standing with the American Institute of
				  Certified Public Accountants (AICPA) and in all states in which the individual
				  or firm is licensed to practice; for Canadian and British companies, it means a
				  Canadian-chartered or British-chartered accountant.
"Affiliate "
of, or
				  person
"affiliated with, "
a specific person, is 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 chapter at
				  the election of the controlling person. Refer to subrule 98.13(6) 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 rule 98.5(505).
"Group of insurers "
means those licensed
				  insurers included in the reporting requirements of Iowa, or a set of insurers
				  as identified by management, for the purpose of assessing the effectiveness of
				  internal control over financial reporting.
"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 knowing of other misrepresentations made by the insurer
				  or its representatives.
"Independent board member"
has the same
				  meaning as described in subrule 98.13(4).
"Insurer"
means a licensed insurer under
				  Title XIII of the Iowa Code, except entities organized under Iowa Code chapters
				  512A, 512B, 518, and 518A.
"Internal audit function"
means a person or
				  persons that 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
				  paragraphs
"b"
through
"g"
of subrule 98.5(2),
				  and includes those policies and procedures that:
(1) pertain to the maintenance of records that, in reasonable
				  detail, accurately and fairly reflect the transactions and dispositions of
				  assets;
(2) provide reasonable assurance that transactions are
				  recorded as necessary to permit preparation of the financial statements, i.e.,
				  those items specified in paragraphs
"b"
through
"g"
of subrule 98.5(2), and that receipts and
				  expenditures are being made only in accordance with authorizations of
				  management and directors; and
(3) 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 paragraphs
"b "
through
"g"
of
				  subrule 98.5(2).
"NAIC"
means the National Association of
				  Insurance Commissioners.
"SEC"
means the United States Securities and
				  Exchange Commission.
"Section 404"
means Section 404 of the
				  Sarbanes-Oxley Act,
				  15 U.S.C. Section
				  7262, and the SEC's rules and regulations
				  promulgated thereunder.
"Section 404 Report"
means management's
				  report on "internal control over financial reporting" as defined by the SEC and
				  the related attestation report of the independent certified public
				  accountant.
"SOX"
means the Sarbanes-Oxley Act of 2002,
				  Pub.L.
				  107-204, 116 Stat. 745.
"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 SOX:
(1) the preapproval requirements of Section 201 (Section
				  10A(i) of the Securities Exchange Act of 1934,
				  15 U.S.C. Section
				  78j-1(i));
(2) the audit committee independence requirements of Section
				  301 (Section 10A(m)(3) of the Securities Exchange Act of 1934,
				  15 U.S.C. Section
				  78j-1(m)(3)); and
(3) the internal control over financial reporting
				  requirements of Section 404 (Item 308 of SEC Regulation S-K,
				  17 C.F.R.
				  Section 228308.).