Nebraska Administrative Code › Topic - INSURANCE, DEPARTMENT OF › Title 210 - NEBRASKA DEPARTMENT OF INSURANCE › Chapter 56 - ANNUAL AUDITED FINANCIAL REPORTS › Section 210-56-003 - Definitions

Current through June 17, 2024
The terms and definitions provided herein are intended to
				  provide definitional guidance as the terms used in this Rule.
003.01 Accountant or independent certified
				public accountant
"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 they are licensed to practice; for Canadian and
				  British companies, it means a Canadian-chartered or British-chartered
				  accountant. For purposes of this Rule, "independent" means not affiliated with
				  an Insurer.
003.02 An
				"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.
003.03 Audit committee
"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 Rule at the election
				  of the controlling person. Refer to Section 014.05 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.
003.04 Audited
				financial report
"Audited financial report" means and includes those items
				  specified in Section 005 of this Rule.
003.05 Department
"Department" means the Nebraska Department of
				  Insurance.
003.06 Director
"Director" means the Director of Insurance for the State of
				  Nebraska.
003.07
				Indemnification
"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 or other misrepresentations made by the Insurer or its
				  representatives.
003.08
				Independent board member
"Independent board member" has the same meaning as described
				  in Section 014.03.
003.09
				Insurer
"Insurer" means any stock insurance company, mutual insurance
				  company, assessment company, reciprocal insurance company, fraternal benefit
				  society or health maintenance organization holding a certificate of authority
				  or license issued by the Department.
003.10 Group of insurers
"Group of insurers" means those licensed Insurers included in
				  the reporting requirements of
Neb. Rev. Stat.
§
										44-2120, or a set
				  of Insurers as identified by management, for the purpose of assessing the
				  effectiveness of Internal control over financial reporting.
003.11 Internal audit function
"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.
003.12 Internal
				control over financial reporting
"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 Section 005.02 through
				  005.07 of this Rule and includes those policies and procedures that:
003.12(a) Pertain to the maintenance of
				records that, in reasonable detail, accurately and fairly reflect the
				transactions and dispositions of assets;
003.12(b) Provide reasonable assurance that
				transactions are recorded as necessary to permit preparation of the financial
				statements, i.e., those items specified in Section 005.02 through 005.07 of
				this Rule and that receipts and expenditures are being made only in accordance
				with authorizations of management and directors; and
003.12(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 Section 005.02 through 005.07 of
				this Rule.