reglab/statecodes huggingface dataset:
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-01 - Definitions

Current through Supplement No. 393, July, 2024
As used in this chapter:
1. "Consent" means agreement to administrative supervision by
				  the insurer.
2. "Exceeded its powers" means the following conditions:
a. The insurer has refused to permit examination of its
				  books, papers, accounts, records, or affairs by the commissioner,
				  commissioner's deputies, employees, or duly commissioned examiners.
b. A domestic insurer has unlawfully removed from this state
				  books, papers, accounts, or records necessary for an examination of the
				  insurer.
c. The insurer has failed to promptly comply with the
				  applicable financial reporting statutes or rules and departmental requests
				  relating thereto.
d. The insurer has neglected or refused to observe an order
				  of the commissioner to make good, within the time prescribed by law, any
				  prohibited deficiency in its capital, capital stock, or surplus.
e. The insurer is continuing to transact insurance or write
				  business after its license has been revoked or suspended by the commissioner.
f. The insurer, by contract or otherwise, has unlawfully or
				  has in violation of an order of the commissioner or has without first having
				  obtained written approval of the commissioner if approval is required by law.
(1) Totally reinsured its entire outstanding business; or
(2) Merged or consolidated substantially its entire property
				  or business with another insurer.
g. The insurer engaged in any transaction in which it is not
				  authorized to engage under the laws of this state.
h. The insurer refused to comply with a lawful order of the
				  commissioner.
3. "Insurer" means and includes every person engaged as
				  indemnitor, surety or contractor in the business of entering into contracts of
				  insurance or of annuities as limited to any insurer doing business, or has
				  transacted insurance in this state, and against whom claims arising from that
				  transaction may exist now or in the future.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-02 - Applicability

Current through Supplement No. 393, July, 2024
The provisions of this chapter apply to:
1. All domestic insurers.
2. Any other insurer doing business in this
				state whose state of domicile has asked the commissioner to apply the
				provisions of this chapter as regards such insurer.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-03 - Notice to comply with written requirements of commissioner - Noncompliance - Administrative supervision

Current through Supplement No. 393, July, 2024
1.
				An insurer may be subject to administrative supervision by the commissioner if
				upon examination or at any other time it appears in the commissioner's
				discretion that:
a. The insurer's condition
				renders the continuance of its business hazardous to the public or to its
				insureds;
b. The insurer has
				exceeded its powers granted under its certificate of authority and applicable
				law;
c. The insurer has failed to
				comply with the applicable provisions of the insurance code;
d. The business of the insurer is being
				conducted fraudulently; or
e. The
				insurer gives its consent.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-04 - Confidentiality of certain proceedings and records

Current through Supplement No. 393, July, 2024
1. Notwithstanding any other provision of law
				and except as set forth herein; proceedings, hearings, notices, correspondence,
				reports, records, and other information in the possession of the commissioner
				or the department relating to the supervision of any insurer are confidential
				except as provided herein.
2. The
				personnel of the department shall have access to these proceedings, hearings,
				notices, correspondence, reports, records, or information as permitted by the
				commissioner.
3. The commissioner
				may open the proceedings or hearings or disclose the notices, correspondence,
				reports, records, or information to a department, agency, or instrumentality of
				this or another state of the United States if the commissioner determines that
				the disclosure is necessary or proper for the enforcement of the laws of this
				or another state of the United States.
4. The commissioner may open the proceedings
				or hearings or make public the notices, correspondence, reports, records, or
				other information if the commissioner deems that it is in the best interest of
				the public or in the best interest of the insurer, its insureds, creditors, or
				the general public.
5. This
				section does not apply to hearings, notices, correspondence, reports, records,
				or other information obtained upon the appointment of a receiver for the
				insurer by a court of competent jurisdiction.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-05 - Prohibited acts during period of supervision

Current through Supplement No. 393, July, 2024
During the period of supervision, the commissioner or the
				  commissioner's designated appointee shall serve as the administrative
				  supervisor. The commissioner may provide that the insurer may not do any of the
				  following things during the period of supervision, without the prior approval
				  of commissioner or the commissioner's appointed supervisor:
1. Dispose of, convey, or encumber any of its
				assets or its business in force;
2. Withdraw any of its bank accounts;
3. Lend any of its funds;
4. Invest any of its funds;
5. Transfer any of its property;
6. Incur any debt, obligation, or
				liability;
7. Merge or consolidate
				with another company;
8. Approve
				new premiums or renew any policies;
9. Enter into any new reinsurance contract or
				treaty;
10. Te r m in a t e , s u
				r render, forfeit, convert, or lapse any insurance policy, certificate, or
				contract, except for nonpayment of premiums due;
11. Release, pay, or refund premium deposits,
				accrued cash or loan values, unearned premiums, or other reserves on any
				insurance policy, certificate, or contract;
12. Make any material change in management;
				or
13. Increase salaries and
				benefits of officers or directors or the preferential payment of bonuses,
				dividends, or other payments deemed preferential.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-06 - Review and stay of action

Current through Supplement No. 393, July, 2024
During the period of supervision the insurer may contest an
				  action taken or proposed to be taken by the supervisor specifying the manner
				  wherein the action being complained of would not result in improving the
				  condition of the insurer. Denial of the insurer's request upon reconsideration
				  entitles the insurer to request a proceeding under North Dakota Century Code
				  chapter 28-32.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-07 - Administrative election of proceedings

Current through Supplement No. 393, July, 2024
Nothing contained in this chapter precludes the commissioner
				  from initiating judicial proceedings to place an insurer in conservation,
				  rehabilitation, or liquidation proceedings or other delinquency proceedings,
				  however designated under the laws of this state, regardless of whether the
				  commissioner has previously initiated administrative supervision proceedings
				  under this chapter against the insurer.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-08 - Other laws - Conflicts - Meetings between the commissioner and the supervisor

Current through Supplement No. 393, July, 2024
Notwithstanding any other provision of law, the commissioner
				  may meet with a supervisor appointed under this chapter and with the attorney
				  or other representative of the supervisor, without the presence of any other
				  person, at the time of any proceeding or during the pendency of any proceeding
				  held under authority of this chapter to carry out the commissioner's duties
				  under this chapter or for the supervisor to carry out the supervisor's duties
				  under this chapter.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-14 - Administrative Supervision Model › Section 45-03-14-09 - Immunity

Current through Supplement No. 393, July, 2024
There is no liability on the part of, and no cause of action
				  of any nature may arise against, the insurance commissioner or the department
				  or its employees or agents for any action taken by them in the performance of
				  their powers and duties under this chapter.
General Authority: NDCC 28-32
Law Implemented: NDCC 26.1-01-03.1, 26.1-05-04, 26.1-05-32,
					 26.1-06.1-01(3)(a), 26.1-06.1-11
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-15 - Accounting Practices and Procedures › Section 45-03-15-01 - Accounting practices and procedures

Current through Supplement No. 393, July, 2024
Every insurance company doing business in this state shall
				  file with the commissioner, pursuant to North Dakota Century Code section
				  26.1-03-07, the appropriate national association of insurance commissioners
				  annual statement blank, prepared in accordance with the national association of
				  insurance commissioners instructions handbook and following the accounting
				  procedures and practices prescribed by the March 2023 version of the national
				  association of insurance commissioners accounting practices and procedures
				  manual for property and casualty and life and health insurance.
General Authority:
NDCC 28-32-02
Law Implemented:
NDCC 26.1-02-26, 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-15 - Accounting Practices and Procedures › Section 45-03-15-02 - Reporting of financial information

Current through Supplement No. 393, July, 2024
Every insurance company licensed to do business in this state
				  shall transmit to the commissioner and to the national association of insurance
				  commissioners its most recent financial statements compiled on a quarterly
				  basis, within forty-five days following the calendar quarters ending March
				  thirty-first, June thirtieth, and September thirtieth. The financial statements
				  must be prepared and filed in the form prescribed by the commissioner and in
				  accordance with the national association of insurance commissioners
				  instructions handbook and following the accounting procedures and practices
				  prescribed by the March 2023 version of the national association of insurance
				  commissioners accounting practices and procedures manual for property and
				  casualty and life and health insurance. The commissioner may exempt any company
				  or category or class of companies from the filing requirement.
General Authority:
NDCC 28-32-02
Law Implemented:
NDCC 26.1-02-03, 26.1-02-26,
					 26.1-03-07, 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-15 - Accounting Practices and Procedures › Section 45-03-15-03 - Annual statement filing

Current through Supplement No. 393, July, 2024
Every insurance company operating in more than one state
				  shall file all annual and quarterly statements with the national association of
				  insurance commissioners, through media acceptable to the commissioner, unless
				  the commissioner makes a specific finding that an insurer, or type of insurer,
				  is exempt from this filing requirement.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-15 - Accounting Practices and Procedures › Section 45-03-15-04 - Acceptable media for annual statement filing

Current through Supplement No. 393, July, 2024
The filing of annual and quarterly statements with the
				  national association of insurance commissioners and every insurance company
				  subject to the requirements of section 45-03-15-03 shall use the national
				  association of insurance commissioners internet filing website in making the
				  filings required by that section .
General Authority:
NDCC 28-32-02
Law Implemented:
NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-18 - Fire District Assignment › Section 45-03-18-01 - Application or renewal form to contain fire districtnumber

Current through Supplement No. 393, July, 2024
1. Applications for fire, allied, homeowner's
				multiple peril, farmowner's multiple peril, commercial multiple peril, or crop
				hail insurance coverage for property in this state must identify by fire
				district number the fire district in which the property is located.
2. A company using an in-house system
				(electronic or manual) in its application process to identify and record the
				fire district number based upon the property location and value, complies with
				this section if the data is accurate, accessible, and readily verifiable.
3. Companies that use agents for
				reporting this information may use form NDFD300 (8/93) (appendix A).
4. For renewal business or changes not
				requiring a new application:
a. Companies
				using agents to report the information may use form NDFD300 (8/93) (appendix
				A).
b. Companies using an in-house
				system may do so subject to the requirements of subsection 2.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-18 - Fire District Assignment › Section 45-03-18-02 - Applications involving multiple fire districts

Current through Supplement No. 393, July, 2024
In accordance with section
				  45-03-18-01, a company shall
				  apportion the property premium attributable to each fire district on the basis
				  of the location of the property and the insured value of the property in each
				  district.
General Authority: NDCC 26.1-01-07.5
Law Implemented: NDCC
					 26.1-01-07.5
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-18 - Fire District Assignment › Section 45-03-18-03 - Atlas of fire district maps

Current through Supplement No. 393, July, 2024
The insurance department, in conjunction with the state fire
				  marshal and the firemen's association, shall prepare an atlas of county maps
				  showing the fire districts in each county. The atlas must certify the fire
				  districts as of July first of each year. A copy of the atlas must be sent and
				  billed to each company subject to section
				  45-03-18-01 which is licensed in
				  this state. The charge for the atlas is twenty dollars per copy. Companies must
				  be notified each year of the changes to the atlas and companies are responsible
				  for distribution of the atlas, if necessary.
General Authority: NDCC 26.1-01-07.5
Law Implemented: NDCC
					 26.1-01-07.5
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-18 - Fire District Assignment › Section 45-03-18-04 - Company reporting of premium information

Current through Supplement No. 393, July, 2024
The insurance department is responsible for the collection,
				  verification, and accuracy of data reported to the insurance department along
				  with its annual statement. The company may file the appropriate information by
				  computer diskette subject to the specifications set forth by the insurance
				  department. If the company is unable to comply with these specifications, the
				  company may use the fire district reporting form and file manually. A copy of
				  page fourteen of the annual statement must be submitted with the diskette and
				  fire district reporting form for purposes of cross-checking data.
General Authority: NDCC 26.1-01-07.5
Law Implemented: NDCC
					 26.1-01-07.5
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-18 - Fire District Assignment › Section 45-03-18-05 - Reporting of property premiums only

Current through Supplement No. 393, July, 2024
In the lines of homeowner's multiple peril, farmowner's
				  multiple peril, and commercial multiple peril insurance companies shall
				  subtract any liability premium from the total premium to arrive at the property
				  premium. For package policies containing numerous subcoverages with minor
				  premiums attributable to each, those premiums must be included in the total
				  amount reported.
APPENDIX
				  A
General Authority: NDCC 26.1-01-07.5
Law Implemented: NDCC
					 26.1-01-07.5
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-19 - Actuarial Opinion and Memorandum Regulation › Section 45-03-19-01 - Scope

Current through Supplement No. 393, July, 2024
This chapter applies to all life insurance companies and
				  fraternal benefit societies doing business in this state and to all life
				  insurance companies and fraternal benefit societies that are authorized to
				  reinsure life insurance, annuities, or accident and health insurance business
				  in this state. This chapter shall be applied in a manner that allows the
				  appointed actuary to utilize the actuary's professional judgment in performing
				  the asset analysis and developing the actuarial opinion and supporting
				  memoranda, consistent with relevant actuarial standards of practice. However,
				  the commissioner shall have the authority to specify specific methods of
				  actuarial analysis and actuarial assumptions when, in the commissioner's
				  judgment, these specifications are necessary for an acceptable opinion to be
				  rendered relative to the adequacy of reserves and related items. This chapter
				  is applicable to all annual statements filed with the office of the
				  commissioner on or after October 1, 1995. A statement of opinion on the
				  adequacy of the reserves and related actuarial items based on an asset adequacy
				  analysis in accordance with section
				  45-03-19-06, and a supporting
				  memorandum in accordance with section
				  45-03-19-07, are required each
				  year.
General Authority: NDCC 26.1-35-01.1
Law Implemented: NDCC
					 26.1-35-01.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-19 - Actuarial Opinion and Memorandum Regulation › Section 45-03-19-02 - Definitions

Current through Supplement No. 393, July, 2024
1. "Actuarial standards board" means the board established by
				  the American academy of actuaries to develop and promulgate standards of
				  actuarial practice.
2. "Annual statement" means the statement required by North
				  Dakota Century Code section 26.1-03-07 to be filed annually by the company with
				  the office of the commissioner.
3. "Appointed actuary" means an individual who is appointed
				  or retained in accordance with subsection 3 of section
				  45-03-19-03 to provide the
				  actuarial opinion and supporting memorandum as required by North Dakota Century
				  Code section 26.1-35-01.1.
4. "Asset adequacy analysis" means an analysis that meets the
				  standards and other requirements referred to in subsection 4 of section
				  45-03-19-03.
5. "Company" means a life insurance company, fraternal
				  benefit society, or reinsurer subject to the provisions of this chapter.
6. "Qualified actuary" means an individual who meets the
				  requirements in subsection 2 of section
				  45-03-19-03.
General Authority: NDCC 26.1-35-01.1
Law Implemented: NDCC
					 26.1-35-01.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-19 - Actuarial Opinion and Memorandum Regulation › Section 45-03-19-03 - General requirements

Current through Supplement No. 393, July, 2024
1.
				Submission of statement of actuarial opinion.
a. There must be included on or attached to
				page one of the annual statement for each year beginning 1995 the statement of
				an appointed actuary, entitled "statement of actuarial opinion", setting forth
				an opinion relating to reserves and related actuarial items held in support of
				policies and contracts, in accordance with section
				45-03-19-06.
b. Upon written request by the company, the
				commissioner may grant an extension of the date for submission of the statement
				of actuarial opinion.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-19 - Actuarial Opinion and Memorandum Regulation › Section 45-03-19-06 - Statement of actuarial opinion based on an asset adequacy analysis

Current through Supplement No. 393, July, 2024
1. The statement of actuarial opinion
				submitted in accordance with this section must consist of:
a. A paragraph identifying the appointed
				actuary and the appointed actuary's qualifications (see subdivision a of
				subsection 2).
b. A scope
				paragraph identifying the subjects on which an opinion is to be expressed and
				describing the scope of the appointed actuary's work, including a tabulation
				delineating the reserves and related actuarial items that have been analyzed
				for asset adequacy and the method of analysis (see subdivision b of subsection
				2), and identifying the reserves and related actuarial items covered by the
				opinion that have not been so analyzed.
c. A reliance paragraph describing those
				areas, if any, where the appointed actuary has deferred to other experts in
				developing data, procedures or assumptions, for example, anticipated cash flows
				from currently owned assets, including variation in cash flows according to
				economic scenarios (see subdivision c of subsection 2), supported by a
				statement of each expert in the form prescribed by subsection 5.
d. An opinion paragraph expressing the
				appointed actuary's opinion with respect to the adequacy of the supporting
				assets to mature the liabilities (see subdivision f of subsection 2).
e. One or more additional
				paragraphs will be needed in individual company cases as follows:
(1) If the appointed actuary considers it
				necessary to state a qualification of the appointed actuary's opinion.
(2) If the appointed actuary must
				disclose an inconsistency in the method of analysis or basis of asset
				allocation used at the prior opinion date with that used for this opinion.
(3) If the appointed actuary must
				disclose whether additional reserves of the prior opinion date are released as
				of this opinion date, and the extent of the release.
(4) If the appointed actuary chooses to add a
				paragraph briefly describing the assumptions that form the basis for the
				actuarial opinion.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-19.1 - Property and Casualty Actuarial Opinion › Section 45-03-19.1-01 - Statement of actuarial opinion and supporting documentation

Current through Supplement No. 393, July, 2024
1.
Statement of actuarial opinion.
Every property and casualty insurance company doing business in this
				state, unless otherwise exempted by the domiciliary commissioner, shall
				annually submit to the North Dakota insurance commissioner the opinion of an
				appointed actuary entitled "statement of actuarial opinion". This opinion shall
				be filed in accordance with the appropriate national association of insurance
				commissioners property and casualty annual statement instructions.
2.
Actuarial opinion summary.
a. Every property and casualty insurance
				company domiciled in this state that is required to submit a statement of
				actuarial opinion shall annually submit to the North Dakota insurance
				commissioner an actuarial opinion summary, written by the company's appointed
				actuary. This actuarial opinion summary shall be filed in accordance with the
				appropriate national association of insurance commissioners property and
				casualty annual statement instructions and shall be considered as a document
				supporting the actuarial opinion required in subsection 1.
b. A company licensed but not domiciled in
				this state shall provide the actuarial opinion summary upon request.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-01 - Purpose and scope

Current through Supplement No. 393, July, 2024
1. The purpose of
				this chapter is to improve the North Dakota insurance department's surveillance
				of the financial condition of insurers by requiring:
a. An annual audit of financial statements
				reporting the financial position and the results of operations of insurers by
				independent certified public accountants;
b. Communication of internal control-related
				matters noted in an audit; and
c.
				Management's report of internal control over financial reporting.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-03 - General requirements related to filing and extensions for filing of annual audited financial reports and audit committee appointment

Current through Supplement No. 393, July, 2024
1. All insurers shall have an annual audit by
				an independent certified public accountant and shall file an audited financial
				report with the commissioner on or before June first for the year ended
				December thirty-first immediately preceding. The commissioner may require an
				insurer to file an audited financial report earlier than June first with ninety
				days' advance notice to the insurer.
2. Extensions of the June first filing date
				may be granted by the commissioner for thirty-day periods upon showing by the
				insurer and its independent certified public accountant the reasons for
				requesting an extension and determination by the commissioner of good cause for
				an extension. The request for extension must be submitted in writing not less
				than ten days prior to the due date in sufficient detail to permit the
				commissioner to make an informed decision with respect to the requested
				extension.
3. If an extension is
				granted in accordance with the provisions in subsection 2 of section
				45-03-20-03, a similar extension
				of thirty days is granted to the filing of management's report of internal
				control over financial reporting.
4. Every insurer required to file an annual
				audited financial report pursuant to this chapter shall designate a group of
				individuals as constituting its audit committee, as defined in section
				45-03-20-02. The audit committee
				of an entity that controls an insurer may be deemed to be the insurer's audit
				committee for purposes of this chapter at the election of the controlling
				person.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-04 - Contents of annual audited financial report

Current through Supplement No. 393, July, 2024
The annual audited financial report must report the
				  financial position of the insurer as of the end of the most recent calendar
				  year and the results of its operations, cashflows, and changes in capital and
				  surplus for the year then ended in conformity with statutory accounting
				  practices prescribed, or otherwise permitted, by the department of insurance of
				  the state of domicile.
The annual audited financial report must include the
				  following:
1. Report of independent
				certified public accountant.
2.
				Balance sheet reporting admitted assets, liabilities, capital, and surplus.
3. Statement of operations.
4. Statement of cashflows.
5. Statement of changes in capital
				and surplus.
6. Notes to financial
				statements. These notes must be those required by the appropriate national
				association of insurance commissioners annual statement instructions and the
				national association of insurance commissioners accounting practices and
				procedures manual. These notes must include a reconciliation of differences, if
				any, between the audited statutory financial statements and the annual
				statement filed pursuant to North Dakota Century Code section 26.1-03-07 with a
				written description of the nature of these differences.
7. The financial statements included in the
				audited financial report must be prepared in a form and using language and
				groupings substantially the same as the relevant sections of the annual
				statement of the insurer filed with the commissioner, and the financial
				statement must be comparative, presenting the amounts as of December
				thirty-first of the current year and the amounts as of the immediately
				preceding December thirty-first. However, in the first year in which an insurer
				is required to file an audited financial report, the comparative data may be
				omitted.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-06 - Qualifications of independent certified public accountant

Current through Supplement No. 393, July, 2024
1. The commissioner shall not recognize any
				person or firm as a qualified independent certified public accountant if the
				person or firm:
a. Is not in good standing
				with the American institute of certified public accountants and in all states
				in which the accountant is licensed to practice, or, for a Canadian or British
				company, that is not a chartered accountant; or
b. Has either directly or indirectly entered
				into an agreement of indemnity or release from liability, collectively referred
				to as indemnification, with respect to the audit of the insurer.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-07 - Consolidated or combined audits

Current through Supplement No. 393, July, 2024
An insurer may make written application to the commissioner
				  for approval to file audited consolidated or combined financial statements in
				  lieu of separate annual audited financial statements if the insurer is part of
				  a group of insurance companies which utilizes a pooling or one hundred percent
				  reinsurance agreement that affects the solvency and integrity of the insurer's
				  reserves and the insurer cedes all of its direct and assumed business to the
				  pool. In such cases, a columnar consolidating or combining worksheet must be
				  filed with the report, as follows:
1.
				Amounts shown on the consolidated or combined audited financial report must be
				shown on the worksheet.
2. Amounts
				for each insurer subject to this section must be stated separately.
3. Noninsurance operations may be shown on
				the worksheet on a combined or individual basis.
4. Explanations of consolidating and
				eliminating entries must be included.
5. A reconciliation must be included of any
				differences between the amounts shown in the individual insurer columns of the
				worksheet and comparable amounts shown on the annual statements of the
				insurers.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-08 - Scope of audit and report of independent certified public accountant

Current through Supplement No. 393, July, 2024
Financial statements furnished under section
				  45-03-20-04 must be examined by
				  the independent certified public accountant. The audit of the insurer's
				  financial statements shall be conducted in accordance with generally accepted
				  auditing standards. In accordance with AU 319 of the professional standards of
				  the American institute of certified public accountants, consideration of
				  internal control in a financial statement audit, the independent certified
				  public accountant should obtain an understanding of internal control sufficient
				  to plan the audit. To the extent required by AU 319, for those insurers
				  required to file a management's report of internal control over financial
				  reporting pursuant to section
				  45-03-20-12.3, the independent
				  certified public accountant should consider, as that term is defined in
				  statements on auditing standards no. 102, defining professional requirements in
				  statements on auditing standards or its replacement, the most recently
				  available report in planning and performing the audit of the statutory
				  financial statements. Consideration shall be given to the procedures
				  illustrated in the financial condition examiner's handbook promulgated by the
				  national association of insurance commissioners as the independent certified
				  public accountant deems necessary.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-09 - Notification of adverse financial condition

Current through Supplement No. 393, July, 2024
1. The insurer required to furnish the annual
				audited financial report shall require the independent certified public
				accountant to report, in writing, within five business days to the board of
				directors or its audit committee any determination by the independent certified
				public accountant that the insurer has materially misstated its financial
				condition as reported to the commissioner as of the balance sheet date
				currently under audit or that the insurer does not meet the minimum capital and
				surplus requirement of the North Dakota insurance statute as of that date. An
				insurer who has received a report under this section shall forward a copy of
				the report to the commissioner within five business days of receipt of the
				report and shall provide the independent certified public accountant making the
				report with evidence of the report being furnished to the commissioner. If the
				independent certified public accountant fails to receive the evidence within
				the required five-business-day period, the independent certified public
				accountant shall furnish to the commissioner a copy of its report within the
				next five business days.
2. An
				independent certified public accountant is not liable in any manner to any
				person for any statement made in connection with this section if the statement
				is made in good faith in compliance with subsection 1.
3. If the accountant, subsequent to the date
				of the audited financial report filed under this chapter, becomes aware of
				facts that might have affected the accountant's report, the commissioner notes
				the obligation of the accountant to take action as prescribed in volume 1,
				section AU 561 of the professional standards of the American institute of
				certified public accountants.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-10 - Communication of internal control-related matters noted in an audit

Current through Supplement No. 393, July, 2024
1. In addition to the annual audited
				financial report, each insurer shall furnish the commissioner with a written
				communication as to any unremediated material weaknesses in its internal
				controls over financial reporting noted during the audit. Such communication
				shall be prepared by the accountant within sixty days after the filing of the
				annual audited financial report, and shall contain a description of any
				unremediated material weakness, as the term material weakness is defined by
				statements on auditing standards no. 60, communication of internal
				control-related matters noted in an audit or its replacement, as of December
				thirty-first immediately preceding, in the insurer's internal control over
				financial reporting noted by the accountant during the course of the
				accountant's audit of the financial statements. If no unremediated material
				weaknesses were noted, the communication should so state.
2. The insurer is required to provide a
				description of remedial actions taken or proposed to correct unremediated
				material weaknesses, if the actions are not described in the accountant's
				communication.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-11 - Accountant's letter of qualifications

Current through Supplement No. 393, July, 2024
The accountant shall furnish the insurer in connection with,
				  and for inclusion in, the filing of the annual audited financial report, a
				  letter stating:
1. That the
				accountant is independent with respect to the insurer and conforms to the
				standards of the accountant's profession as contained in the code of
				professional ethics and pronouncements of the American institute of certified
				public accountants and the rules of professional conduct of the North Dakota
				board of accountancy, or similar code.
2. The background and experience in general,
				and the experience in audits of insurers of the staff assigned to the
				engagement and whether each is an independent certified public accountant.
				Nothing within this chapter may be construed as prohibiting the accountant from
				utilizing the staff as deemed appropriate where use is consistent with the
				standards prescribed by generally accepted auditing standards.
3. That the accountant understands the annual
				audited financial report and the accountant's opinion thereon will be filed in
				compliance with this chapter and that the commissioner will be relying on this
				information in the monitoring and regulation of the financial position of
				insurers.
4. That the accountant
				consents to the requirements of section
				45-03-20-12 and that the
				accountant consents and agrees to make available for review by the
				commissioner, the commissioner's designee, or the commissioner's appointed
				agent, the workpapers, as defined in section
				45-03-20-12.
5. A representation that the accountant is
				properly licensed by an appropriate state licensing authority and is a member
				in good standing in the American institute of certified public accountants.
6. A representation that the
				accountant is in compliance with the requirements of section
				45-03-20-06.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-12 - Definition, availability, and maintenance of independent certified public accountant workpapers

Current through Supplement No. 393, July, 2024
1. Workpapers are
				the records kept by the independent certified public accountant of the
				procedures followed, the tests performed, the information obtained, and the
				conclusions reached pertinent to the independent certified public accountant's
				audit of the financial statements of an insurer. Workpapers, accordingly, may
				include audit planning documentation, work programs, analyses, memoranda,
				letters of confirmation and representation, abstracts of company documents, and
				schedules or commentaries prepared or obtained by the independent certified
				public accountant in the course of the accountant's audit of the financial
				statements of an insurer and which support the accountant's opinion thereof.
2. Every insurer required to file
				an audited financial report under this chapter, shall require the accountant to
				make available for review by insurance department examiners, all workpapers
				prepared in the conduct of the accountant's audit and any communications
				related to the audit between the accountant and the insurer, at the offices of
				the insurer, at the insurance department, or at any other reasonable place
				designated by the commissioner. The insurer shall require that the accountant
				retain the audit workpapers and communications until the insurance department
				has filed a report on examination covering the period of the audit but no
				longer than seven years from the date of the audit report.
3. In the conduct of the aforementioned
				periodic review by the insurance department examiners, it must be agreed that
				photocopies of pertinent audit workpapers may be made and retained by the
				department. Such reviews by the department examiners must be considered
				investigations and all working papers and communications obtained during the
				course of the investigations must be afforded the same confidentiality as other
				examination workpapers generated by the department.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-12.2 - Conduct of insurer in connection with the preparation of required reports and documents

Current through Supplement No. 393, July, 2024
1. No director or
				officer of an insurer shall, directly or indirectly:
a. Make or cause to be made a materially
				false or misleading statement to an accountant in connection with any audit,
				review, or communication required under this chapter; or
b. Omit to state, or cause another person to
				omit to state, any material fact necessary in order to make statements made, in
				light of the circumstances under which the statements were made, not misleading
				to an accountant in connection with any audit, review, or communication
				required under this chapter.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-13 - Exemptions and effective dates

Current through Supplement No. 393, July, 2024
1. Upon written
				application of any insurer, the commissioner may grant an exemption from
				compliance with any and all provisions of this chapter if the commissioner
				finds, upon review of the application, that compliance with this chapter would
				constitute a financial or organizational hardship upon the insurer. An
				exemption may be granted at any time and from time to time for a specified
				period or periods. Within ten days from a denial of an insurer's written
				request for an exemption from this chapter, the insurer may request in writing
				a hearing on its application for an exemption. The hearing must be held in
				accordance with the rules and regulations of the North Dakota insurance
				department pertaining to administrative hearing procedures.
2. Domestic insurers retaining a certified
				public accountant on October 1, 1995, who qualify as independent shall comply
				with this chapter for the year ending December 31, 1996, and each year
				thereafter unless the commissioner permits otherwise.
3. Domestic insurers not retaining a
				certified public accountant on October 1, 1995, who qualify as independent may
				meet the following schedule for compliance unless the commissioner permits
				otherwise:
a. As of December 31, 1996, file
				with the commissioner an audited financial report.
b. For the year ending December 31, 1996, and
				each year thereafter, the insurers shall file with the commissioner all reports
				and communications required by this chapter.
North Dakota Administrative Code › Title 45 - Insurance, Commissioner of › Article 45-03 - Regulation of Insurance Companies › Chapter 45-03-20 - Annual Financial Reporting Model Regulation › Section 45-03-20-14 - Canadian and British companies

Current through Supplement No. 393, July, 2024
1. In
				the case of Canadian and British insurers, the annual audited financial report
				shall be defined as the annual statement of total business on the form filed by
				such companies with their supervision authority duly audited by an independent
				chartered accountant.
2. For such
				insurers, the letter required in subsection 2 of section
				45-03-20-05 shall state that the
				accountant is aware of the requirements relating to the annual audited
				financial report filed with the commissioner pursuant to section
				45-03-20-03 and shall affirm that
				the opinion expressed is in conformity with those requirements.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07,
					 26.1-03-11.1