reglab/statecodes huggingface dataset:
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 260 - RULES GOVERNING INSURANCE HOLDING COMPANIES › Section 14VAC5-260-87 - Group capital calculation

Current through Register Vol. 40, No. 24, July 15, 2024
A. Where an
				insurance holding company system has previously filed the annual group capital
				calculation at least once, the commissioner, if the lead state commissioner,
				has the discretion to exempt the ultimate controlling person from filing the
				annual group capital calculation if the commissioner makes a determination
				based upon that filing that the insurance holding company system meets all of
				the following criteria:
1. Has annual direct
				written and unaffiliated assumed premium (including international direct and
				assumed premium), but excluding premiums reinsured with the Federal Crop
				Insurance Corporation and Federal Flood Program, of less than $1
				billion;
2. Has no insurers within
				its holding company structure that are domiciled outside of the United States
				or one of its territories;
3. Has
				no banking, depository, or other financial entity that is subject to an
				identified regulatory capital framework within its holding company
				structure;
4. The holding company
				system attests that there are no material changes in the transactions between
				insurers and non-insurers in the group that have occurred since the last filing
				of the annual group capital; and
5.
				The non-insurers within the holding company system do not pose a material
				financial risk to the insurer's ability to honor policyholder
				obligations.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 260 - RULES GOVERNING INSURANCE HOLDING COMPANIES › Section 14VAC5-260-90 - Dividends and other distributions

Current through Register Vol. 40, No. 24, July 15, 2024
A. Each registered insurer shall report to
				the commission as required under § 38.2-1329 of the Act, all dividends and
				other distributions to shareholders within five business days following
				declaration. An insurer shall not pay a dividend or other distribution until 30
				days after the commission has received written notice of the declaration
				thereof and has not within such period disapproved such payment. The commission
				may approve the payment of such dividend or other distribution prior to the 30
				days. Such dividends and other distributions are to be paid out of earned
				surplus unless the commission has provided prior written approval for such
				dividends or other distributions to be paid from another source. Except as
				provided in subsection B of this section, the report shall be filed in the
				format prescribed by Form F and shall include at least the following:
1. A statement stating whether the dividend
				or distribution is extraordinary. If the dividend or distribution is
				extraordinary, the insurer also shall state the date of approval, if any,
				obtained pursuant to § 38.2-1330.1A of the Act, or the earliest date on
				which approval may be deemed;
2.
				Earned surplus as of the immediately preceding December 31;
3. The amount of the proposed
				dividend;
4. The date of
				declaration, date of record and date established for payment of the
				dividend;
5. A statement as to
				whether the dividend is to be in cash or other property and, if in property, a
				description thereof, its cost, and its fair market value together with an
				explanation of the basis for valuation;
6. The amounts, dates and form of payment of
				all dividends or distributions (including regular dividends but excluding
				distributions of the insurer's own securities) paid within the period of 12
				consecutive months ending on the date fixed for payment of the proposed
				dividend for which approval is sought and commencing on the day after the same
				day of the same month in the last preceding year;
7. A brief statement as to the effect of the
				proposed dividend upon the insurer's surplus and the reasonableness of surplus
				in relation to the insurer's outstanding liabilities and the adequacy of
				surplus relative to the insurer's financial needs; and
8. A statement identifying any and all
				revaluations of assets.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 260 - RULES GOVERNING INSURANCE HOLDING COMPANIES › Section 14VAC5-260-100 - Management of controlled insurers and standards for transactions with affiliates

Current through Register Vol. 40, No. 24, July 15, 2024
A.
				Notwithstanding the control of an authorized insurer by any person, neither the
				officers and directors of the insurer nor any similarly situated person to whom
				authority has been delegated, shall thereby be relieved of any obligation or
				liability to which they would otherwise be subject by law, and the insurer
				shall be managed so as to assure its separate operating identity consistent
				with the Act and Title 38.2 of the Code of Virginia.
B. Nothing herein shall preclude an
				authorized insurer from having or sharing a common management or cooperative or
				joint use of personnel, property, or services with one or more other persons
				under arrangements meeting the standards of subsection A of § 38.2-1330 of
				the Act:
1. The terms shall be fair and
				reasonable;
2. Charges or fees for
				services performed shall be reasonable;
3. Expenses incurred and payments received
				shall be allocated to the insurer in conformity with customary insurance
				accounting practices consistently applied;
4. The books, accounts, and records of each
				party shall disclose clearly and accurately the precise nature and details of
				the transactions as agreed upon in writing by the parties; and
5. The insurer's surplus to policyholders
				following any dividends or distributions to shareholder affiliates shall be
				reasonable in relation to the insurer's outstanding liabilities and adequate to
				its financial needs.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 260 - RULES GOVERNING INSURANCE HOLDING COMPANIES › Section 14VAC5-260-110 - Severability clause

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 260 - RULES GOVERNING INSURANCE HOLDING COMPANIES › Form - FORMS (14VAC5-260)

Current through Register Vol. 40, No. 24, July 15, 2024
Form
				  A, Instructions for Application for Approval of Acquisition of Control of or
				  Merger with a Domestic Insurer Pursuant to § 38.2-1323 of the Code of
				  Virginia, and Application (rev. 7/2022)
Form
				  B, Instructions for Insurance Holding Company System Annual Registration
				  Statement Pursuant to § 38.2-1329 of the Code of Virginia, and Statement
				  (rev. 1/2015)
Form
				  C, Instructions for Summary of Changes to Registration Statement Pursuant to
				  § 38.2-1329 of the Code of Virginia, and Summary (rev.
				  1/2015)
Form
				  D, Instructions for Prior Notice and Application for Approval of Certain
				  Transactions Pursuant to § 38.2-1330 B of the Code of Virginia, and Notice
				  and Application (rev. 1/2015)
Form
				  E, Instructions for Pre-Acquisition Notification Form Regarding the Potential
				  Competitive Impact of a Proposed Merger or Acquisition by a Non-Domiciliary
				  Insurer Doing Business in this Commonwealth or by a Domestic Insurer Pursuant
				  to § 38.2-1323 of the Code of Virginia, and Notification (rev.
				  1/2015)
Form
				  F, Instructions for Enterprise Risk Report Pursuant to § 38.2-1329 L of
				  the Code of Virginia, and Report (eff. 1/2015)
Form
				  G, Instructions for Notice of Dividends and Distributions to Shareholders
				  Pursuant to §§ 38.2-1329 F and 38.2-1330.1 of the Code of Virginia,
				  and Notice (rev. 1/2015)
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 260 - RULES GOVERNING INSURANCE HOLDING COMPANIES › Section - DOCUMENTS INCORPORATED BY REFERENCE (14VAC5-260)

Current through Register Vol. 40, No. 24, July 15, 2024
NAIC
				  Accounting Practices & Procedures Manual March 2022
, National
				  Association of Insurance Commissioners, 1100 Walnut Street, Suite 1500, Kansas
				  City, MO 64106,
www.naic.org
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 265 - RULES GOVERNING CORPORATE GOVERNANCE ANNUAL DISCLOSURES › Section 14VAC5-265-10 - Purpose and scope

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to set forth rules and
				  procedures for filing and for the required contents of the Corporate Governance
				  Annual Disclosure that the commission deems necessary to carry out the
				  provisions of Article 5.2 (§
									38.2-1334.11 et seq.)
				  of Chapter 13 of Title 38.2 of the Code of Virginia.
Statutory Authority §§
											12.1-13
					 and
					 38.2-223
					 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 265 - RULES GOVERNING CORPORATE GOVERNANCE ANNUAL DISCLOSURES › Section 14VAC5-265-20 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms when used in this chapter shall
				  have the following meanings, unless the context clearly indicates
				  otherwise:
"Corporate Governance Annual Disclosure" or "CGAD" means a
				  confidential report filed by the insurer or insurance group made in accordance
				  with the requirements of this chapter.
"Insurance group" means those insurers and affiliates
				  included within an insurance holding company system as defined in §
									38.2-1322 of the Code
				  of Virginia.
"Insurer" means an insurance company as defined in §
									38.2-100 of the Code
				  of Virginia. "Insurer" shall not include agencies, authorities, or
				  instrumentalities of the United States, its possessions and territories, the
				  Commonwealth of Puerto Rico, the District of Columbia, or a state or political
				  subdivision of a state.
"Senior management" means any corporate officer responsible
				  for reporting information to the board of directors at regular intervals or
				  providing this information to shareholders or regulators and shall include, for
				  example and without limitation, the chief executive officer (CEO), chief
				  financial officer, chief operations officer, chief procurement officer, chief
				  legal officer, chief information officer, chief technology officer, chief
				  revenue officer, chief visionary officer, or any other "C" level
				  executive.
"The Act" means Article 5.2 (§
									38.2-1334.11 et seq.)
				  of Chapter 13 of Title 38.2 of the Code of Virginia.
Statutory Authority §§
											12.1-13
					 and
					 38.2-223
					 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 265 - RULES GOVERNING CORPORATE GOVERNANCE ANNUAL DISCLOSURES › Section 14VAC5-265-40 - Contents of Corporate Governance Annual Disclosure

Current through Register Vol. 40, No. 24, July 15, 2024
A. The insurer or insurance group shall be as
				descriptive as possible in completing the CGAD and include attachments or
				example documents that are used in the governance process since these may
				provide a means to demonstrate the strengths of the governance framework and
				practices.
B. The CGAD shall
				describe the insurer's or insurance group's corporate governance framework and
				structure including consideration of the following:
1. The board of directors (board) and various
				committees thereof ultimately responsible for overseeing the insurer or
				insurance group and the level at which that oversight occurs (e.g., ultimate
				control level, intermediate holding company, legal entity, etc.). The insurer
				or insurance group shall describe and discuss the rationale for the current
				board size and structure; and
2.
				The duties of the board and each of its significant committees and how they are
				governed (e.g., bylaws, charters, informal mandates, etc.), as well as how the
				board's leadership is structured, including a discussion of the roles of the
				chief executive officer (CEO) and chairman of the board within the
				organization.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 265 - RULES GOVERNING CORPORATE GOVERNANCE ANNUAL DISCLOSURES › Section 14VAC5-265-50 - Severability clause

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision in this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority §§
											12.1-13
					 and
					 38.2-223
					 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-10 - Purpose

Current through Register Vol. 40, No. 24, July 15, 2024
The purpose of this chapter is to improve the commission's
				  surveillance of the financial condition of licensed companies by requiring (i)
				  an annual audit of financial statements reporting the financial position and
				  the results of operations of insurers by an independent certified public
				  accountant, (ii) Communicating Internal Control Related Matters Identified in
				  an Audit, and (iii) Management's Report of Internal Control over Financial
				  Reporting.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-20 - Applicability

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter shall apply to all life, accident and sickness,
				  and property and casualty insurers licensed to transact the business of
				  insurance in this Commonwealth under Chapter 10 (§ 38.2-1000 et seq.) of
				  Title 38.2 of the Code of Virginia and all other entities licensed to do
				  business under any one or more of the following chapters of Title 38.2 of the
				  Code of Virginia, subject to the limitations and/or exemptions as further
				  stated in this chapter:
1. Chapter 11
				- Captive Insurers.
2. Chapter 12 -
				Reciprocal Insurance.
3. Chapter 25
				- Mutual Assessment Property and Casualty Insurers.
4. Chapter 26 (Article 1) - Home Protection
				Companies.
5. Chapter 40 - Burial
				Societies.
6. Chapter 41 -
				Fraternal Benefit Societies.
7.
				Chapter 42 - Health Services Plans.
8. Chapter 43 - Health Maintenance
				Organizations.
9. Chapter 44 -
				Legal Services Plans.
10. Chapter
				45 - Dental or Optometric Services Plans.
11. Chapter 46 - Title Insurance.
12. Chapter 61 - Dental Plan
				Organizations.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-30 - Scope

Current through Register Vol. 40, No. 24, July 15, 2024
This chapter shall apply to all entities listed in
				  14VAC5-270-20, hereinafter
				  referred to as "insurers." Insurers having direct premiums written of less than
				  $1 million in any calendar year and having less than 1,000 policyholders or
				  certificate holders of direct written policies at the end of such calendar year
				  are exempt from the requirements of this chapter for such year unless the
				  commission deems that compliance with the reporting requirements of this
				  chapter is necessary to establish the financial condition of an insurer.
				  Insurers having assumed premiums of $1 million or more pursuant to contracts
				  and/or treaties of reinsurance will not be so exempt.
Foreign or alien insurers filing the Audited Financial Report
				  in another state, pursuant to that state's requirements for filing Audited
				  Financial Reports and where the requirements have been found by the commission
				  to be substantially similar to the requirements herein, are exempt from
				  14VAC5-270-50 through
				  14VAC5-270-140 if:
1. A copy of the Audited Financial Report,
				the Communicating Internal Control Related Matters Identified in an Audit, and
				the Accountant's Letter of Qualifications, which are filed with the other
				state, are filed with the commission in accordance with the filing dates
				specified in
				14VAC5-270-50,
				14VAC5-270-120, and
				14VAC5-270-130, respectively
				(Canadian insurers may submit accountants' reports as filed with the Canadian
				Office of the Superintendent of Financial Institutions).
2. A copy of any Notification of Adverse
				Financial Condition Report filed with the other state is filed with the
				commission within the time specified in
				14VAC5-270-110.
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 Commonwealth 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 provision shall not prohibit, preclude or in any way
				  limit the commission's rights with respect to workpapers described in
				  14VAC5-270-140 or its rights
				  concerning the ordering and/or conducting and/or performing of examinations of
				  insurers under Title 38.2 of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-50 - General requirements related to filing and extensions for filing of annual Audited Financial Reports and Audit Committee appointment

Current through Register Vol. 40, No. 24, July 15, 2024
A. All insurers
				shall have an annual audit by an accountant and shall file an Audited Financial
				Report with the commission on or before the applicable due date for the year
				ending the immediately preceding December 31.
The commission may require an insurer to file an Audited
				  Financial Report earlier than the due date with 90 days advance notice to the
				  insurer.
B. An extension of
				the due date filing date may be granted by the commission for periods of up to
				30 days upon a showing by the insurer and its accountant of the reasons for
				requesting an extension and upon determination by the commission of good cause
				for an extension. The request for extension shall be submitted in writing not
				less than 10 days prior to the due date in sufficient detail to permit the
				commission to make an informed decision with respect to the requested
				extension.
C. If an extension is
				granted in accordance with the provisions of subsection B of this section, an
				extension of 30 days also is granted to the filing of Management's Reports of
				Internal Control over Financial Reporting.
D. An insurer required to file an annual
				Audited Financial Report pursuant to this chapter shall designate a group of
				individuals as constituting its Audit Committee. 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.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-60 - Contents of annual Audited Financial Report

Current through Register Vol. 40, No. 24, July 15, 2024
The annual Audited Financial Report shall report the
				  financial position of the insurer as of the end of the most recent calendar
				  year and the results of its operations, cash flow, and changes in capital and
				  surplus for the year then ended in conformity with statutory accounting
				  practices prescribed, or otherwise permitted, by the insurer's state of
				  domicile. The annual Audited Financial Report shall 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 cash
				flow.
5. Statement of changes in
				capital and surplus.
6. Notes to
				financial statements. These notes shall be those required by the appropriate
				annual statement and NAIC accounting practices and procedures manual. The notes
				shall include a reconciliation of differences, if any, between the audited
				statutory financial statements and the annual statement filed pursuant to
				§§ 38.2-1300, 38.2-4126 or 38.2-4307 of the Code of Virginia with a
				written description of the nature of these differences.
7. The financial statements included in the
				annual Audited Financial Report shall be prepared in a form and using language
				and groupings substantially the same as the relevant sections of the annual
				statement the insurer filed with the commission, and the financial statements
				shall be comparative, presenting the amounts as of December 31 of the current
				year and the amounts as of the immediately preceding December 31. However, in
				the first year in which an insurer is required to file an Audited Financial
				Report, the comparative data may be omitted.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-70 - Designation of independent certified public accountant

Current through Register Vol. 40, No. 24, July 15, 2024
A. Each insurer required by this chapter to
				file an annual Audited Financial Report, within 60 days after becoming subject
				to the requirement, shall register with the commission in writing the name and
				address of the independent certified public accountant retained to conduct the
				annual audit set forth in this chapter.
B. As part of this registration, the insurer
				shall obtain a letter from the accountant and file a copy with the commission
				stating that the accountant is aware of the provisions of the insurance code
				and the rules and regulations of the insurance department of the state of
				domicile that relate to accounting and financial matters, and affirming that
				the accountant will express an opinion on the financial statements in terms of
				their conformity to the statutory accounting practices prescribed or otherwise
				permitted by that department, specifying such exceptions as the accountant may
				believe appropriate.
C. If the
				accountant who was the insurer's accountant for the immediately preceding filed
				Audited Financial Report is dismissed or resigns, the insurer shall notify the
				commission within five business days of this event. The insurer also shall
				furnish the commission with a separate letter within 10 business days of the
				above notification stating whether in the 24 months preceding the event there
				were any disagreements with the former accountant on any matter of accounting
				principles or practices, financial statement disclosure, or auditing scope or
				procedure, which if not resolved to the satisfaction of the former accountant,
				would have caused the accountant to make reference to the subject matter of the
				disagreement in the opinion. The disagreements required to be reported in
				response to this subsection include those resolved to the former accountant's
				satisfaction and those not resolved to the former accountant's satisfaction.
				Disagreements contemplated by this subsection are those that occur at the
				decision-making level, i.e., between personnel of the insurer responsible for
				presentation of its financial statements and personnel of the accounting firm
				responsible for rendering its report. The insurer also in writing shall request
				the former accountant to furnish a letter addressed to the insurer stating
				whether the accountant agrees with the statements contained in the insurer's
				letter and, if not, stating the reasons for disagreement; and the insurer shall
				furnish a responsive letter from the former accountant to the commission
				together with its own letter.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-80 - Qualifications of accountant

Current through Register Vol. 40, No. 24, July 15, 2024
A. The
				commission shall not recognize a person or firm as a qualified accountant if
				that person or firm:
1. Is not in good
				standing with the AICPA 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
2. 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.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-90 - Consolidated or combined audits

Current through Register Vol. 40, No. 24, July 15, 2024
An insurer may make written application to the commission for
				  approval to include in its Audited Financial Report 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 that
				  utilizes a pooling or 100% 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 shall be filed with the report, as follows:
1. Amounts shown on the consolidated or
				combined Audited Financial Report shall be shown on the worksheet.
2. Amounts for each insurer subject to this
				section shall 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 shall be included.
5. A reconciliation shall 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.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-100 - Scope of audit and report of independent certified public accountant

Current through Register Vol. 40, No. 24, July 15, 2024
Financial statements furnished pursuant to
				  14VAC5-270-60 shall be examined by
				  an accountant. The audit of the insurer's financial statements shall be
				  conducted in accordance with generally accepted auditing standards. In
				  accordance with U.S. Auditing Standards - AICPA Clarified (AU-C) Section 315 of
				  the AICPA Professional Standards, Understanding the Entity and Its Environment
				  and Assessing the Risks of Material Misstatement, the accountant shall obtain
				  an understanding of internal control sufficient to plan the audit. To the
				  extent required by AU-C Section 315, for those insurers required to file a
				  Management's Report of Internal Control over Financial Reporting pursuant to
				  14VAC5-270-148, the accountant
				  should consider (as the term should consider is defined in AU-C Section 200 of
				  the AICPA Professional Standards, Overall Objectives of the Independent Auditor
				  and the Conduct of an Audit in Accordance with Generally Accepted Auditing
				  Standards) 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 Examiners Handbook
				  promulgated by the NAIC as the accountant deems necessary.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-110 - Notification of adverse financial condition

Current through Register Vol. 40, No. 24, July 15, 2024
A. The insurer required to furnish the annual
				Audited Financial Report shall require the accountant to report in writing
				within five business days to the board of directors or its Audit Committee any
				determination by the accountant that the insurer has materially misstated its
				financial condition as reported to the commission as of the balance sheet date
				under examination or that the insurer does not meet its minimum statutory
				capital and surplus requirements as of that date pursuant to Virginia law. An
				insurer that has received a report pursuant to this subsection shall forward a
				copy of the report to the commission within five business days of receipt of
				the report and shall provide the accountant making the report with evidence of
				the report being furnished to the commission. If the accountant fails to
				receive the evidence within the required five-business-day period, the
				accountant shall furnish to the commission a copy of its report within the next
				five business days.
B. No
				accountant shall be liable in any manner to any person for any statement made
				in connection with subsection A of this section if the statement is made in
				good faith in compliance with subsection A of this section.
C. If the accountant, subsequent to the date
				of the Audited Financial Report filed pursuant to this chapter, becomes aware
				of facts which might have affected the report, the commission notes the
				obligation of the accountant to take action as prescribed in AU-C Section 560
				of the AICPA Professional Standards, Subsequent Events and Subsequently
				Discovered Facts .
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-120 - Communicating internal control related matters identified in an audit

Current through Register Vol. 40, No. 24, July 15, 2024
A. In addition to
				the annual Audited Financial Report, each insurer shall furnish the commission
				with a written communication as to any unremediated material weaknesses in its
				internal controls over financial reporting identified during the audit. The
				communication shall be prepared by the accountant within 60 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
				in AU-C Section 265 of the AICPA Professional Standards, Communicating Internal
				Control Related Matters Identified in an Audit) as of the immediately preceding
				December 31 (so as to coincide with the Audited Financial Report discussed in
				14VAC5-270-50 A) in the insurer's
				internal control over financial reporting identified by the accountant during
				the course of the audit of the financial statements. If no unremediated
				material weaknesses were identified, the communication should so
				state.
B. 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.
C. The
				insurer is expected to maintain information about significant deficiencies
				communicated by the independent certified public accountant. The information
				should be made available to the examiner conducting a financial condition
				examination for review and kept in a manner as to remain
				confidential.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-130 - Accountant's letter of qualifications

Current through Register Vol. 40, No. 24, July 15, 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 his
				profession as contained in the AICPA's Code of Professional Conduct and
				pronouncements of its Financial Accounting Standards Board, and the Standards
				of Practice of the Virginia Board for 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 accountant. Nothing within this chapter shall
				be construed as prohibiting the accountant from utilizing staff as deemed
				appropriate where such use is consistent with the standards prescribed by
				generally accepted auditing standards.
3. That the accountant understands the annual
				Audited Financial Report, and that its opinion thereon will be filed in
				compliance with this chapter and that the commission 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
				14VAC5-270-140 and that the
				accountant consents and agrees to make available for review by the commission,
				its designee or appointed agent, the workpapers, as defined in
				14VAC5-270-40.
5. That the accountant is properly licensed
				by an appropriate state licensing authority and that he is a member in good
				standing in the AICPA.
6. That the
				accountant is in compliance with
				14VAC5-270-80.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-140 - Availability and maintenance of independent certified public accountant workpapers

Current through Register Vol. 40, No. 24, July 15, 2024
Every insurer required to file the Audited Financial Report
				  described in this chapter shall require the accountant to make available for
				  review by the commission's 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 commission or
				  at any other reasonable place designated by the commission. The insurer shall
				  require that the accountant retain the workpapers and communications until the
				  commission 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.
In the conduct of the aforementioned periodic review by the
				  commission's examiners, it shall be agreed that photocopies of pertinent
				  workpapers may be made and retained by the commission. Reviews by the
				  commission's examiners shall be considered investigations and all workpapers
				  and communications obtained during the course of investigations shall be
				  confidential.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-145 - Internal audit function requirements

Current through Register Vol. 40, No. 24, July 15, 2024
A. An insurer is exempt from the requirements
				of this section if:
1. The insurer has annual
				direct written and unaffiliated assumed premium, including international direct
				and assumed premium but excluding premiums reinsured with the Federal Crop
				Insurance Corporation and Federal Flood Program, less than $500 million;
				and
2. If the insurer is a member
				of a group of insurers, the group has annual direct written and unaffiliated
				assumed premium including international direct and assumed premium, but
				excluding premiums reinsured with the Federal Crop Insurance Corporation and
				Federal Flood Program, less than $1 billion.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-146 - Conduct of insurer in connection with the preparation of required reports and documents

Current through Register Vol. 40, No. 24, July 15, 2024
A. No
				director or officer of an insurer shall, directly or indirectly:
1. 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
2. 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.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-150 - Exemptions

Current through Register Vol. 40, No. 24, July 15, 2024
Upon written application of an insurer, the commission may
				  grant an exemption from any provision and/or requirement of this chapter if the
				  commission finds, upon review of the application, that compliance with this
				  chapter would constitute an undue 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. Upon written application of an insurer, the
				  commission may, for a specified period or periods, permit an insurer to file
				  annual Audited Financial Reports on some basis other than a calendar year
				  basis.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-170 - Canadian and British companies

Current through Register Vol. 40, No. 24, July 15, 2024
A. For Canadian and British insurers, the
				annual Audited Financial Report shall be defined as the annual statement of
				total business on the form filed by the companies with their domiciliary
				regulatory authority duly audited by an independent chartered
				accountant.
B. For Canadian and
				British insurers, the letter from the accountant required in
				14VAC5-270-70 shall state that the
				accountant is aware of the requirements relating to the annual Audited
				Financial Report filed with the commission pursuant to this section and
				14VAC5-270-50 and shall affirm
				that the opinion expressed is in conformity with the requirements.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-174 - Retention of independent certified public accountant on or after January 1, 2010, and other effective dates

Current through Register Vol. 40, No. 24, July 15, 2024
A. Unless otherwise noted, the requirements
				of this chapter shall become effective for the reporting period ending December
				31, 2010, and each year thereafter. An insurer or group of insurers not
				required to file a report because its total written premium is below the
				threshold that subsequently becomes subject to the reporting requirements shall
				have two years following the year the threshold is exceeded (but not earlier
				than December 31, 2010) to file a report. Likewise, an insurer acquired in a
				business combination shall have two calendar years following the date of
				acquisition or combination to comply with the reporting requirements.
B. The requirements of
				14VAC5-270-80 D shall become
				effective for audits of the year beginning January 1, 2010, and
				thereafter.
C. The requirements of
				14VAC5-270-144 shall become
				effective on January 1, 2010. An insurer or group of insurers that is not
				required to have independent Audit Committee members or only a majority of
				independent Audit Committee members (as opposed to a supermajority) because the
				total direct written and assumed premium is below the threshold and
				subsequently becomes subject to one of the independence requirements due to
				changes in premium shall have one year following the year the threshold is
				exceeded (but not earlier than January 1, 2010) to comply with the independence
				requirements. Likewise, an insurer that becomes subject to one of the
				independence requirements as a result of a business combination shall have one
				calendar year following the date of acquisition or combination to comply with
				the independence requirements.
D.
				The requirements of 14VAC5-270-145 are to become effective January 1, 2016. If
				an insurer or group of insurers that is exempt from the 14VAC5-270-145
				requirements no longer qualifies for that exemption, it shall have one year
				after the year the threshold is exceeded to comply with the requirements of
				this chapter.
NOTICE: The following forms used in administering the
				  regulation were filed by the agency. The forms are not being published;
				  however, online users of this issue of the Virginia Register of Regulations may
				  click on the name of a form with a hyperlink to access it. The forms are also
				  available from the agency contact or may be viewed at the Office of the
				  Registrar of Regulations, General Assembly Building, 2nd Floor, Richmond,
				  Virginia 23219.
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section 14VAC5-270-180 - Severability

Current through Register Vol. 40, No. 24, July 15, 2024
If any provision of this chapter or the application thereof
				  to any person or circumstance is for any reason held to be invalid, the
				  remainder of the chapter and the application of the provision to other persons
				  or circumstances shall not be affected thereby.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Form - FORMS (14VAC5-270)

Current through Register Vol. 40, No. 24, July 15, 2024
Audited
				  Financial Statements Exemption Affidavit Year Ended December 31, 2014, R03
				  (eff. 10/2014)
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 270 - RULES GOVERNING ANNUAL FINANCIAL REPORTING › Section - DOCUMENTS INCORPORATED BY REFERENCE (14VAC5-270)

Current through Register Vol. 40, No. 24, July 15, 2024
AICPA Professional Standards, Volume 1, as of June 1, 2015,
				  American Institute of Certified Public Accountants, New York, New York
				  10036-8775,
http://www.aicpa.org
AICPA Professional Standards, Volume 2, as of June 1, 2015,
				  American Institute of Certified Public Accountants, New York, New York
				  10036-8775,
http://www.aicpa.org
Statutory Authority: §§ 12.1-13 and 38.2-223 of
					 the Code of Virginia.
Virginia Administrative Code › Title 14 - INSURANCE › Agency 5 - STATE CORPORATION COMMISSION, BUREAU OF INSURANCE › Chapter 280 - RULES ESTABLISHING STANDARDS FOR LIFE, ANNUITY, AND ACCIDENT AND SICKNESS REINSURANCE AGREEMENTS › Section 14VAC5-280-10 - Definitions

Current through Register Vol. 40, No. 24, July 15, 2024
The following words and terms, when used in this chapter,
				  shall have the following meaning unless the context clearly indicates
				  otherwise:
"Commission" means State Corporation Commission.
"Insurer" means a cooperative nonprofit life benefit company,
				  a mutual assessment life, accident and sickness insurer, a fraternal benefit
				  society, a health services plan, a dental services plan, or an optometric
				  services plan licensed under Title 38.2 of the Code of Virginia; and also any
				  insurance company, whether known as a life and health insurer, a property and
				  casualty insurer, or a reciprocal, which is licensed in Virginia and authorized
				  to write any class of life insurance, annuities, or accident and sickness
				  insurance.
"Life and health business" means
(i) a class of insurance defined by
				§§ 38.2-102 through 38.2-109 of the Code of Virginia or
(ii) any product or service sold or offered
				by a person organized and licensed in Virginia under Chapter 38 (§
				38.2-3800 et seq., cooperative nonprofit life benefit companies), Chapter 39
				(§ 38.2-3900 et seq., mutual assessment life, accident and sickness
				insurers), Chapter 41 (§ 38.2-4100 et seq., fraternal benefit societies),
				Chapter 42 (§ 38.2-4200 et seq., health services plans), Chapter 43
				(§ 38.2-4300 et seq., health maintenance organizations), or Chapter 45
				(§ 38.2-4500 et seq., dental or optometric services plans) of Title 38.2
				of the Code of Virginia.
Statutory Authority
§§ 12.1-13 and 38.2-223 of the Code of Virginia.
12.1-13 and
					 38.2-223