Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 147 - ANNUAL FINANCIAL REPORTING REQUIREMENTS › Section 147.13 - Effective date and exemption

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				This chapter applies to all insurers doing business in this
				Commonwealth.
(b) Insurers shall
				comply with this chapter for annual audited financial reports beginning January
				1, 2010.
(c) Foreign insurers
				having direct premiums written in this Commonwealth less than $1 million in a
				calendar year and having fewer than 1,000 policyholders or certificateholders
				of directly written policies in this Commonwealth at the end of that calendar
				year shall be exempt from this chapter for that year unless the Commissioner
				makes a specific finding that compliance is necessary for the Commissioner to
				carry out statutory responsibilities. Foreign insurers having assumed premiums
				pursuant to contracts or treaties of reinsurance, or both, of $1 million or
				more are not exempt.
(d) Domestic
				insurers having total admitted assets less than $10 million, direct premium
				written Nationwide less than $1 million in a calendar year and having fewer
				than 1,000 policyholders or certificateholders of directly written policies
				Nationwide at the end of that calendar year are exempt from this chapter for
				that year unless the Commissioner makes a specific finding that compliance is
				necessary for the Commissioner to carry out statutory responsibilities.
				Domestic insurers having total admitted assets greater than $10 million or
				assumed premiums pursuant to contracts or treaties, or both, of reinsurance of
				$1 million or more are not exempt.
(e) Domestic insurers not insuring or
				reinsuring risks located outside of this Commonwealth having total admitted
				assets less than $10 million and either direct premium written of less than $1
				million in a calendar year or fewer than 1,000 policyholders or
				certificateholders of directly written policies at the end of that calendar
				year are exempt from this chapter for that year, unless the Commissioner makes
				a specific finding that compliance is necessary for the Commissioner to carry
				out statutory responsibilities. Insurers having total admitted assets greater
				than $10 million or assumed premiums pursuant to contracts or treaties of
				reinsurance, or both, of $1 million or more are not exempt.
(f) Foreign insurers filing annual audited
				financial reports in another state, pursuant to that state's requirements for
				annual audited financial reports whose requirements are substantially similar
				to the requirements of this chapter, are exempt from this chapter.
(g) Upon written application of an insurer,
				the Commissioner may grant an exemption from compliance with all or part 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 specified periods. If an exemption is granted, the insurer
				shall file a copy of the exemption with the NAIC and as required by the chief
				insurance regulatory official in all states where the insurer is licensed or is
				doing business. Within 10 days from a denial of the written application of an
				insurer for an exemption from this chapter, the insurer may request in writing
				a hearing on its application for an exemption. Hearings will be held in
				accordance with
				2
				Pa.C.S. §§
										501-508 and
				701-704 (relating to
				Administrative Agency Law) and Chapters 56 and 57 (relating to special rules of
				administrative practice and procedure; publication of citations and notice of
				hearings).
(h) Subsections (c)-(g)
				do not apply to continuing care providers.
(i) In the case of insurers organized in
				Canada or the United Kingdom of Great Britain and Northern Ireland, the annual
				audited financial report is defined as the annual statement of total business
				on the form filed by the insurers with their domiciliary supervision authority,
				audited by an independent chartered accountant. For these insurers, the letter
				required in §
									147.6a (relating to letter of
				qualifications of independent certified public accountant) must state that the
				independent certified public accountant is aware of the requirements relating
				to the annual audited financial report filed with the Commissioner under §
									147.3 (relating to filing and
				extensions for filing required reports and communications) and affirm that the
				opinion expressed is in conformity with those requirements.
(j) If an insurer or group of insurers exempt
				from the requirements of §
									147.8a (relating to internal audit
				function requirements) no longer qualifies for that exemption, it shall have
				until December 31 of the year in which the annual statement was filed showing
				the threshold is exceeded to comply with the requirements of §
				147.8a.
The provisions of this §
											147.13 amended under the authority
					 of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929
					 (71
					 P.S. §§
												66,
					 186,
					 411 and
					 412); sections 320, 630, 1007
					 and 2452 of The Insurance Company Law of 1921 (40 P.S. §§
												443,
					 764a,
					 967 and
					 991.2452); sections 205 and
					 206 of The Pennsylvania Fair Plan Act (40 P.S. §§
												1600.205 and
					 1600.206); section 731 of the
					 Medical Care Availability and Reduction of Error (MCARE) Act (40 P.S. §
												1303.731);
					 40 Pa.C.S. §§
												6125,
					 6331 and
					 6701; sections 11 and 14
					 of the Health Maintenance Organization Act (40 P.S. §§
												1561 and
					 1564); and sections 7 and 25
					 of the Continuing-Care Provider Registration and Disclosure Act (40 P.S.
					 §§
												3207 and
					 3225).
This section cited in 31 Pa. Code §
											147.3 (relating to filing and
					 extensions for filing of annual audited financial reports); 31 Pa. Code §
											147.3a (relating to requirements
					 for audit committees); and 31 Pa. Code §
											147.6 (relating to recognition,
					 qualification and responsibilities of an independent certified public
					 accountant).