Oregon Administrative Rules › Chapter 836 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, INSURANCE REGULATION › Division 11 - ANNUAL STATEMENTS AND REPORTS BY INSURERS › Section 836-011-0110 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
As used in OAR 836-011-0100  to 836-011-0230:
(1) "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 and in each state in which the accountant or accounting firm
			 is licensed to practice. For a Canadian or British insurer, the term means a
			 Canadian-chartered or a British-chartered accountant.
(2) An "affiliate" of, or a 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.
(3) "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 an entity that
			 controls a group of insurers may be considered to be the audit committee for
			 one or more of the controlled insurers solely for the purposes of OAR
			 836-011-0100  to 836-011-0230  at the election of the controlling person.
			 836-011-0223(6)  governs the exercise of this election. If an audit committee is
			 not designated by the insurer, the insurer's entire board of directors
			 constitutes the audit committee.
(4) "Audited financial report" means a report
			 that includes the items specified in OAR 836-011-0140.
(5) "Group of insurers" means those
			 authorized insurers included in the reporting requirements of ORS
			 732.517 to
			 732.592,
			 or a set of insurers as identified by management, for the purpose of assessing
			 the effectiveness of internal control over the financial reporting.
(6) "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.
(7) "Indemnification"
			 means an agreement of indemnity or a release from liability when 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 of other misrepresentations made
			 by the insurer or its representatives.
(8) "Independent board member" has the same
			 meaning given the term in OAR 836-011-0223(4).
(9) "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 OAR 836-011-0140(2) and (3), except for 836-011-0140(2)(a), and
			 includes those policies and procedures that:
(a) Pertain to the maintenance of records
			 that, in reasonable detail, accurately and fairly reflect the transactions and
			 dispositions of assets;
(b) Provide
			 reasonable assurance that transactions are recorded as necessary to permit
			 preparation of the financial statements, i.e., those items specified in OAR
			 836-011-0140(2) and (3), except for 836-011-0140(2)(a), and that receipts and
			 expenditures are being made only in accordance with authorizations of
			 management and directors; and
(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 OAR
			 836-011-0140(2) and (3), except for 836-011-0140(2)(a).