Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.17 - Management's Report of Internal Control over Financial Reporting

Current through June 14, 2024
A. Every insurer required to file an audited
				  financial report pursuant to this Regulation that has annual direct written and
				  assumed premiums, excluding premiums reinsured with the Federal Crop Insurance
				  Corporation and Federal Flood Program, of five hundred million dollars
				  ($500,000,000.00) 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 §
										7.3   of this Part. The report shall be filed with the commissioner
				  along with the Communication of Internal Control Related Matters Noted in an
				  Audit described under §
										7.11   of this Part. Management's Report of Internal
				  Control over Financial Reporting shall be as of December 31 immediately
				  preceding.
B. Notwithstanding the
				  premium threshold in §
										7.17(A)   of this Part, the Commissioner 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 (1) or
				  more of the standards of an insurer deemed to be in hazardous financial
				  condition as defined in R.I. Gen. Laws §
										27-14.2-2.
C. An insurer or a group of insurers that is
1. Directly subject to §
											404;
2. Part of a holding company system whose
				  parent is directly subject to §
											404;
3. Not directly subject to §
											404   but is a
				  SOX Compliant Entity; or
4. A
				  member of a holding company system whose parent is not directly subject to
				  §
											404   but is a SOX Compliant Entity; may file its or its parent's §
											404    R eport and an addendum in satisfaction of this §
											7.16   of this Part
				  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
				  §§
											7.5(B)(2) - (7)   of this Part) were included in the scope of the
				  §
											404   R eport. 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 §§
											7.5(B)(2) - (7)   of this Part) excluded from the
				  §
											404   R eport. 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 §
											404   R eport, the insurer
				  or group of insurers may either file (i) a report under §
											7.17   of this
				  Part, or (ii) the §
											404   R eport and a report under §
											7.17   of this Part
				  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 §
											404   R eport.