Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 137 - Regulation Number 98-Annual Financial Reporting › Section XIII-13705 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. The terms and
				definitions contained herein are intended to provide definitional guidance as
				the terms are used within Regulation 98.
Accountant
or
Independent Certified
				  Public Accountant
-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 he or she is licensed to
				  practice; for Canadian and British companies, the term(s) means a
				  Canadian-chartered or British-chartered accountant.
Affiliate
Of
, or
Person Affiliated with a Specific Person
-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
-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 Regulation 98 at the
				  election of the controlling person. Refer to
				  §13727.A.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
-includes those
				  items specified in
				  §13709 of Regulation 98.
Commissioner
-Commissioner of Insurance of
				  the state of Louisiana unless otherwise indicated.
Department
-Louisiana Department of Insurance
				  unless otherwise indicated.
Group of Insurers
-those licensed insurers
				  included in the reporting requirements Insurance Holding Company System
				  Regulatory Act,
				  R.S. 22:691
				  et seq., or a set of insurers as identified by management for the purpose of
				  assessing the effectiveness of internal control over financial
				  reporting.
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 of other misrepresentations made by the insurer or its
				  representatives.
Independent Board Member
-as defined or
				  described in §13727. A.3
Insurer
-a licensed insurer as defined in
				  R.S.
				  22:46(10) or an authorized
				  insurer as defined in
				  R.S.
				  22:46(3).
Internal Audit Function
-a person or persons
				  that provide independent, objective and reasonable assurance designed to add
				  value and improve an organizations 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
-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 §13709. B.2 through
				  §13709. B.7 of Regulation 98 and includes those policies and procedures
				  that:
a. pertain to the maintenance of records that, in reasonable
				  detail, accurately and fairly reflect the transactions and dispositions of
				  assets;
b. provide reasonable assurance that transactions are
				  recorded as necessary to permit preparation of the financial statements, i.e.,
				  those items specified in §13709. B.2 through §13709. B.7 of Regulation 98 and
				  that receipts and expenditures are being made only in accordance with
				  authorizations of management and directors; and
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, i.e., those items
				  specified in §13709. B.2 through §13709. B.7 of Regulation 98.
NAIC
-National Association of Insurance
				  Commissioners.
SEC
-the United States Securities and
				  Exchange Commission.
Section 404
-Section 404 of the
				  Sarbanes-Oxley Act of 2002 and the SEC's rules and regulations promulgated
				  thereunder.
Section 404 Report
-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 as
				  described or defined in
				  §13705 of Regulation 98.
SOX Compliant Entity
-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:
a. the preapproval requirements of Section 201 (Section
				  10A(i) of the Securities Exchange Act of 1934);
b. the audit committee independence requirements of
				  Section
				  301 (Section 10A(m)(3) of the
				  Securities Exchange Act of 1934); and
c. the internal control over financial reporting requirements
				  of Section 404 (Item 308 of SEC Regulation S-K).
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  22:1 et seq., the "Audited Financial Reports
				  Law"R.S. 22:671 et
				  seq., more particularly
				  R.S.
				  22:675 and the Administrative Procedure Act,
				  R.S.
				  49:950 et
				  seq.