Code of Vermont Rules › Agency 21 - DEPARTMENT OF FINANCIAL REGULATION › Sub-Agency 020 - INSURANCE DIVISION › Chapter 062 - REGULATION I-2009-06 - ANNUAL FINANCIAL REPORTING › Section 21 020 062 - REGULATION I-2009-06 - ANNUAL FINANCIAL REPORTING

Current through June,
				2024
Section 1 Authority
This Regulation is promulgated under the authority granted
				  the Commissioner of the Department of Financial Regulation pursuant to
				  8 V.S.A.
				  §§
											15 and
				  3578a.
Section 2 Purpose and Scope
The purpose of this regulation is to improve the Department's
				  surveillance of the financial condition of insurers by requiring
(1) an annual audit of financial statements
				reporting the financial position and the results of operations of insurers by
				independent certified public accountants,
(2) Communication of Internal Control Related
				Matters Noted in an Audit, and
(3)
				Management's Report of Internal Control over Financial Reporting. Every insurer
				(as defined in Section
				3 ) shall be
				subject to this regulation. Insurers having direct premiums written in this
				state of less than $ 1,000,000 in any calendar year and less than 1,000
				policyholders or certificate holders of direct written policies nationwide at
				the end of the calendar year shall be exempt from this regulation for the year
				(unless the commissioner makes a specific finding that compliance is necessary
				for the commissioner to carry out statutory responsibilities) except that
				insurers having assumed premiums pursuant to contracts and/or treaties of
				reinsurance of $ 1,000,000 or more will not be so exempt.
Foreign or alien insurers filing the Audited financial report
				  in another state, pursuant to that state's requirement for filing of Audited
				  financial reports, which has been found by the commissioner to be substantially
				  similar to the requirements herein, are exempt from Sections
				  4
				  through 13 of this regulation if:
A. A
				copy of the Audited financial report, Communication of Internal Control Related
				Matters Noted in an Audit, and the Accountant's Letter of Qualifications that
				are filed with the other state are filed with the commissioner in accordance
				with the filing dates specified in Sections
				4,
				11 and 12, respectively (Canadian insurers may submit accountants' reports as
				filed with the Office of the Superintendent of Financial Institutions,
				Canada).
B. A copy of any
				Notification of Adverse Financial Condition Report filed with the other state
				is filed with the commissioner within the time specified in Section 10.
Foreign or alien insurers required to file Management's
				  Report of Internal Control over Financial Reporting in another state are exempt
				  from filing the Report in this state provided the other state has substantially
				  similar reporting requirements and the Report is filed with the commissioner of
				  the other state within the time specified.
This regulation shall not prohibit, preclude or in any way
				  limit the commissioner from ordering or conducting or performing examinations
				  of insurers under the rules and regulations of the Department and the practices
				  and procedures of the Department.