Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 56 - ANNUAL AUDITED FINANCIAL REPORTS › Section 210-56-017 - Management's report of internal control over financial reporting

Current through June 17, 2024
017.01 Every
				Insurer required to file an Audited financial report pursuant to this Rule that
				has annual direct written and assumed premiums, excluding premiums reinsured
				with the Federal Crop Insurance Corporation and Federal Flood Program, of
				$500,000,000 or more shall prepare a report of the Insurer's or Group of
				insurers' Internal control over financial reporting, as these terms are defined
				in Section 003. The report shall be filed with the Director along with the
				Communication of Internal Control Related Matters Noted in an Audit described
				under Section 011. Management's Report of Internal Control over Financial
				Reporting shall be as of December 31 immediately preceding.
017.02 Not with standing the premium
				threshold in Section 017.01, the Director 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 meets any one or more of the standards of an
				Insurer deemed to be in hazardous financial condition as defined in (include
				reference to Corrective Action statute).
017.03 An Insurer or a Group of insurers that
				is
017.03(a) directly subject to Section
				404;
017.03(b) part of a holding
				company system whose parent is directly subject to Section 404;
017.03(c) not directly subject to Section 404
				but is a SOX Compliant Entity; or
017.03(d) 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 Section 017 requirement provided that those
				internal controls of the Insurer or Group of insurers having a material impact
				on the preparation of the Insurer's or Group of insurers' audited statutory
				financial statements (those items included in Section 005.02 through 005.07 of
				this Rule) 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
				Section 005.02 through 005.07 of this Rule) 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 (i) a Section 017 report, or (ii) the Section 404
				Report and a Section 017 report 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.