Iowa Administrative Code › Agency 191 - Insurance Division › Insurance Coverage for Pediatric Preventive Services › Chapter 98 - Annual Financial Reporting Requirements › Rule 191-98.16 - Management's Report of Internal Control Over Financial Reporting

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every insurer
				required to file an audited financial report pursuant to this chapter that has
				annual direct written and assumed premiums, excluding premiums reinsured with
				the Federal Crop Insurance Corporation and Federal Flood Program, of $500
				million or more shall prepare a report of the insurer's or group of insurers'
				internal control over financial reporting. The report shall be filed with the
				commissioner along with the Communication of Internal Control Related Matters
				Noted in an Audit described under rule
				191-9811.
				(505). Management's Report of Internal Control Over Financial Reporting shall
				be as of December 31 immediately preceding.
(2) Notwithstanding the premium threshold in
				subrule 98.16(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 if the insurer meets any one or more of the standards of an
				insurer deemed to be hazardous to policyholders, creditors or the general
				public.
(3) An insurer or a group
				of insurers that is (1) directly subject to Section 404; part of a holding
				company system whose parent is directly subject to Section 404; not directly
				subject to Section 404 but is a SOX compliant entity; or 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 rule's requirement provided that those
				internal controls of the insurer or group of insurers having amaterial impact
				on the preparation of the insurer's or group of insurers' audited statutory
				financial statements (those items included in subrule 98.5(2),
				paragraphs
"b"
through
"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 subrule 98.5(2), paragraphs
"b
				"
through
"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 (1) a report as described in this rule, or (2) the
				Section 404 Report and a report as described in this rule 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.
(4)
				Management's Report of Internal Control Over Financial Reporting shall include:
a. A statement that management is responsible
				for establishing and maintaining adequate internal control over financial
				reporting;
b. A statement that
				management has established internal control over financial reporting and an
				assertion, to the best of management's knowledge and belief, after diligent
				inquiry, as to whether its internal control over financial reporting is
				effective to provide reasonable assurance regarding the reliability of
				financial statements in accordance with statutory accounting
				principles;
c. A statement that
				briefly describes the approach or processes by which management evaluated the
				effectiveness of its internal control over financial reporting;
d. A statement that briefly describes the
				scope of work that is included and whether any internal controls were
				excluded;
e. Disclosure of any
				unremediated material weaknesses in the internal control over financial
				reporting identified by management as of December 31 immediately preceding.
				Management is not permitted to conclude that the internal control over
				financial reporting is effective to provide reasonable assurance regarding the
				reliability of financial statements in accordance with statutory accounting
				principles if there are one or more unremediated material weaknesses in its
				internal control over financial reporting;
f. A statement regarding the inherent
				limitations of internal control systems; and
g. Signatures of the chief executive officer
				and the chief financial officer (or equivalent
				position/title).