reglab/statecodes huggingface dataset:
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-150 - Qualifications of independent certified public accountant

Current through Register Vol. 24-14, July 15, 2024
(1) The commissioner shall not recognize a
				person or firm as a qualified independent certified public accountant if the
				person or firm:
(a) Is not in good standing
				with the American Institute of Certified Public Accountants (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
(b) Has either directly or indirectly entered
				into an agreement of indemnity or release from liability (collectively referred
				to as an indemnification) with respect to the audit of the insurer.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-160 - Consolidated or combined audits

Current through Register Vol. 24-14, July 15, 2024
An insurer may make written application to the commissioner
				  for approval to file 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 which utilizes a pooling or one hundred percent
				  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; and
(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:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-160, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-160, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-170 - Scope of audit and report of independent certified public accountant

Current through Register Vol. 24-14, July 15, 2024
Financial statements furnished pursuant to WAC
				  284-07-130 hereof shall be
				  examined by an independent certified public accountant. The audit of the
				  insurer's financial statements shall be conducted in accordance with generally
				  accepted auditing standards. In accordance with AU Section 319 of the
				  Professional Standards of the AICPA,
Consideration of Internal Control
				  in a Financial Statement Audit
, the independent certified public
				  accountant should obtain an understanding of internal control sufficient to
				  plan the audit. To the extent required by AU 319, for those insurers required
				  to file a management's report of internal control over financial reporting
				  pursuant to WAC
				  284-07-217, the independent
				  certified public accountant should consider (as that term is defined in
				  Statement of Auditing Standards (SAS) No. 102,
Defining Professional
				  Requirements in Statements on Auditing Standards
, or its replacement)
				  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 Examiner's Handbook promulgated by the
				  National Association of Insurance Commissioners as the independent certified
				  public accountant deems necessary.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-170, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-170, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-180 - Notification of adverse financial condition

Current through Register Vol. 24-14, July 15, 2024
(1) The insurer required to furnish the
				annual audited financial report shall require the independent certified public
				accountant to report, in writing, within five business days to the board of
				directors or its audit committee any determination by the independent certified
				public accountant that the insurer has materially misstated its financial
				condition as reported to the commissioner as of the balance sheet date
				currently under audit or that the insurer does not meet the minimum capital and
				surplus or net worth requirements of the Washington state insurance code,
				Title
				48 RCW, as of that date. An
				insurer that has received a report pursuant to this subsection shall forward a
				copy of the report to the commissioner within five business days of receipt of
				the report and shall provide the independent certified public accountant making
				the report with evidence of the report being furnished to the commissioner. If
				the independent certified public accountant fails to receive the evidence
				within the required five business day period, the independent certified public
				accountant shall furnish to the commissioner a copy of its report within the
				next five business days.
(2) No
				independent public accountant shall, by virtue of WAC
				284-07-100 through
				284-07-230, be liable in any
				manner to any person for any statement made in connection with subsection (1)
				of this section if the statement is made in good faith in compliance with
				subsection (1) of this section.
(3)
				If the accountant, subsequent to the date of the audited financial report filed
				pursuant to WAC
				284-07-100 through
				284-07-230, becomes aware of
				facts which might have affected his or her report, the commissioner notes the
				obligation of the accountant to take such action as prescribed in Volume 1,
				Section AU 561 of the Professional Standards of the American Institute of
				Certified Public Accountants (AICPA) or its replacement.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-180, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					  48.02.060, 48.43.140,
					 48.44.050 and
					 48.46.200. 94-04-045 (Order R
					 94-2), §
											284-07-180, filed 1/27/94,
					 effective 2/27/94. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-180, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-190 - Communication of internal control related matters noted in an audit

Current through Register Vol. 24-14, July 15, 2024
(1) In addition to
				the annual audited financial report, each insurer must furnish the commissioner
				with a written communication as to any unremediated material weaknesses in its
				internal controls over financial reporting noted during the audit. Such
				communication must be prepared by the accountant within sixty days after the
				filing of the annual audited financial report, and must contain a description
				of any unremediated material weakness (as the term material weakness is defined
				by SAS No. 60, Communication of Internal Control Related Matters Noted in an
				Audit, or its replacement) as of December 31 immediately preceding (so as to
				coincide with the audited financial report discussed in WAC
				284-07-120(1)) 
				in the insurer's internal control over financial reporting noted by the
				accountant during the course of their audit of the financial statements. If no
				unremediated material weaknesses were noted, the communication should so
				state.
(2) The insurer must provide
				a description of remedial actions taken or proposed to correct unremediated
				material weaknesses, if such actions are not described in the accountant's
				communication.
(3) Insurers must
				electronically file the written communication as to any unremediated material
				weakness in its internal controls over financial reporting noted during an
				audit, as described in subsection (1) of this section, in PDF or other format
				as noted on the commissioner's web site.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-190, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					  48.02.060. 92-19-040 (Order R 92-10), §
											284-07-190, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-200 - Accountant's letter of qualifications

Current through Register Vol. 24-14, 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 or her profession as contained in the Code of Professional
				Ethics and pronouncements of the American Institute of Certified Public
				Accountants (AICPA) and the statutes (chapter 18.04 RCW) and rules (chapter 4-25
				WAC) of the Washington state board of accountancy, or similar rules;
(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 independent certified public accountant.
				Nothing within WAC
				284-07-100 through
				284-07-230 shall be construed as
				prohibiting the accountant from utilizing such staff as he or she deems
				appropriate where use is consistent with the standards prescribed by generally
				accepted auditing standards;
(3)
				That the accountant understands the annual audited financial report and his or
				her opinion thereon will be filed in compliance with WAC
				284-07-100 through
				284-07-230 and that the
				commissioner 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 WAC
				284-07-210 and that the
				accountant consents and agrees to make available for review by the
				commissioner, or the commissioner's designee or appointed agent, the
				workpapers, as defined in WAC
				284-07-210;
(5) A representation that the accountant is
				properly licensed by an appropriate state licensing authority and is a member
				in good standing in the American Institute of Certified Public Accountants
				(AICPA); and
(6) A representation
				that the accountant is in compliance with the requirements of WAC
				284-07-150.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-200, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-200, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-210 - Definition, availability, and maintenance of independent certified public accountants workpapers

Current through Register Vol. 24-14, July 15, 2024
(1)
				Workpapers are the records kept by the independent certified public accountant
				of the procedures followed, the tests performed, the information obtained, and
				the conclusions reached pertinent to the accountant's audit of the financial
				statements of an insurer. Workpapers, accordingly, may include audit planning
				documentation, work programs, analyses, memoranda, letters of confirmation and
				representation, abstracts of company documents and schedules or commentaries
				prepared or obtained by the independent certified public accountant in the
				course of his or her audit of the financial statements of an insurer and which
				support the accountant's opinion.
(2) Every insurer required to file an audited
				financial report pursuant to WAC
				284-07-100 through
				284-07-230, shall require the
				accountant to make available for review by the commissioner'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 commissioner's office or at any other
				reasonable place designated by the commissioner. The insurer shall require that
				the accountant retain the audit workpapers and communications until the
				commissioner 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.
(3) In the conduct of the aforementioned
				periodic review by the commissioner's examiners, it shall be agreed that
				photocopies of pertinent audit workpapers may be made and retained by the
				commissioner's office. Such reviews by the commissioner's examiners shall be
				considered investigations and all working papers and communications obtained
				during the course of such investigations shall be afforded the same
				confidentiality as other examination workpapers generated by the insurance
				commissioner.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-210, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-210, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-214 - Internal audit function requirements

Current through Register Vol. 24-14, July 15, 2024
(1) An insurer is exempt from the
				requirements of this section if:
(a) 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 Insurance Program,
				less than five hundred million dollars; and
(b) If the insurer is a member of a group of
				insurers, the group has annual direct written and unaffiliated assumed premium
				including direct and assumed premium, but excluding premiums reinsured with the
				Federal Crop Insurance Corporation and Federal Flood Insurance Program, less
				than one billion dollars.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-215 - Conduct of insurers in connection with the preparation of required reports and documents

Current through Register Vol. 24-14, July 15, 2024
(1) No director
				or officer of an insurer shall, directly or indirectly:
(a) 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 WAC
				284-07-100 through
				284-07-230; or
(b) 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 WAC
				284-07-100 through
				284-07-230.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-220 - Exemptions and effective dates

Current through Register Vol. 24-14, July 15, 2024
(1) Upon written application of any insurer,
				the commissioner may grant an exemption from compliance with any and all
				provisions of WAC
				284-07-100
				through
				284-07-230
				if the commissioner finds, upon review of the application, that compliance with
				WAC
				284-07-100
				through
				284-07-230
				would constitute a 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. Within ten days from a denial of an insurer's written
				request for an exemption from WAC
				284-07-100
				through
				284-07-230,
				the insurer may request in writing a hearing on its application for an
				exemption. The hearing shall be held in accordance with the rules and
				procedures pertaining to administrative hearings.
(2) Domestic insurers retaining a certified
				public accountant on the effective date of WAC
				284-07-100
				through
				284-07-230
				who qualify as independent must comply with WAC
				284-07-100
				through
				284-07-230
				for the year ending December 31, 1992, and each year thereafter unless the
				commissioner permits otherwise.
(3)
				Domestic insurers not retaining a certified public accountant on the effective
				date of WAC
				284-07-100
				through
				284-07-230
				who qualify as independent may meet the following schedule for compliance
				unless the commissioner permits otherwise.
(a) As of December 31, 1992, file with the
				commissioner an audited financial report.
(b) For the year ending December 31, 1992,
				and each year thereafter, the insurers must file with the commissioner all
				reports and communications required by WAC
				284-07-100
				through
				284-07-210.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-230 - Canadian and British companies

Current through Register Vol. 24-14, July 15, 2024
(1) In the case of 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
				supervision authority duly audited by an independent chartered
				accountant.
(2) For the insurers,
				the letter required in WAC
				284-07-140(2)
				 shall state that the accountant is aware of the requirements relating to the
				annual audited report filed with the commissioner pursuant to WAC
				284-07-120 and shall affirm that
				the opinion expressed is in conformity with those requirements.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-230, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-230, filed 9/9/92,
					 effective 10/10/92.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-240 - Severability provision

Current through Register Vol. 24-14, July 15, 2024
If any provision of WAC
				  284-07-100 through
				  284-07-230 or its application to
				  any person or circumstances is held invalid, the remainder of WAC
				  284-07-100 through
				  284-07-230 or the application of
				  the provision to other persons or circumstances is not
				  affected.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-240, filed 10/5/09,
					 effective 11/5/09.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-310 - Purpose

Current through Register Vol. 24-14, July 15, 2024
The purpose of this regulation, WAC 284-07-310 through and
				  including WAC
				  284-07-400,
				  called the actuarial opinion and memorandum regulation, is to prescribe:
(1) Guidelines and standards for statements
				of actuarial opinion submitted in accordance with the requirements of chapter
				48.74 RCW,
				RCW
				 48.36A.250,
				48.36A.260,
				and for supporting memoranda;
(2)
				Rules applicable to the appointment of an appointed actuary; and
(3) Guidelines and standards relating to
				"adequacy of reserves."
Statutory Authority:
					 RCW
					  48.02.060,
					 48.74.025,
					 48.36A.250,
					 48.36A.260. 08-01-077 (Matter No.
					 R 2006-10), §
											284-07-310, filed 12/17/07,
					 effective 1/17/08. Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-310, filed 12/30/94,
					 effective 1/30/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-320 - Authority

Current through Register Vol. 24-14, July 15, 2024
This regulation is issued pursuant to the authority vested in
				  the commissioner under
				  RCW
				   48.01.030,
				  48.02.060, and chapters 48.36A and
				  48.74 RCW.
Statutory Authority:
					 RCW
					 48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-320, filed 12/30/94,
					 effective 1/30/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-330 - Scope

Current through Register Vol. 24-14, July 15, 2024
(1) This regulation
				applies to all life insurance companies and fraternal benefit societies doing
				business in this state, to all life insurance companies and fraternal benefit
				societies which are authorized to reinsure life insurance, annuities, or
				disability insurance business in this state; and to all disability insurers
				that file annual statements on the life and accident and health blank. This
				regulation requires the appointed actuary to use his or her professional
				judgment in performing the required asset analysis and developing the actuarial
				opinion and supporting memoranda, consistent with relevant actuarial standards
				of practice. The commissioner may specify specific methods of actuarial
				analysis and actuarial assumptions when, in the commissioner's opinion, such
				specifications are necessary.
(2)
				This regulation applies to all annual statements filed with the commissioner on
				and after December 31, 2020.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.74.025,
					 48.36A.250,
					 48.36A.260. 08-01-077 (Matter No.
					 R 2006-10), §
											284-07-330, filed 12/17/07,
					 effective 1/17/08. Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-330, filed 12/30/94,
					 effective 1/30/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-340 - Definitions

Current through Register Vol. 24-14, July 15, 2024
The following definitions apply throughout this
				  regulation:
(1) "Actuarial opinion"
				means the opinion of an appointed actuary regarding the adequacy of the
				reserves and related actuarial items based on an asset adequacy analysis set
				forth in WAC
				284-07-380 and according to
				applicable actuarial standards of practice.
(2) "Actuarial Standards Board" means the
				board established by the American Academy of Actuaries to develop and
				promulgate standards of actuarial practice.
(3) "Annual statement" means that statement
				required by
				RCW
				 48.05.250 to be filed annually by the company
				with the commissioner.
(4)
				"Appointed actuary" means any individual who is appointed or retained in
				accordance with the requirements set forth in WAC
				284-07-350(3) to
				provide the actuarial opinion and supporting memorandum as required by
				RCW
				 48.74.025.
(5) "Asset adequacy analysis" means an
				analysis that meets the standards and other requirements set forth in WAC
				284-07-350(4).
(6) "Company" means an insurance company,
				fraternal benefit society, or reinsurer subject to this regulation.
(7) "Qualified actuary" means an individual
				who meets the requirements set forth in WAC
				284-07-350(1).
Statutory Authority:
					 RCW
					 48.02.060,
					 48.74.025,
					 48.36A.250,
					 48.36A.260. 08-01-077 (Matter No.
					 R 2006-10), §
											284-07-340, filed 12/17/07,
					 effective 1/17/08. Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-340, filed 12/30/94,
					 effective 1/30/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-350 - General requirements

Current through Register Vol. 24-14, July 15, 2024
The statement of an appointed actuary, entitled "Statement of
				  Actuarial Opinion," setting forth an opinion relating to reserves and related
				  actuarial items held in support of policies and contracts, in accordance with
				  WAC
				  284-07-380,
				  must be included with an annual statement. A memorandum in support thereof in
				  accordance with WAC
				  284-07-390,
				  is required to be available by May 1st each year. The statement of opinion on
				  the adequacy of the reserves and related actuarial items must comply with the
				  requirements of the
Valuation Manual
, as revised from time to
				  time by the National Association of Insurance Commissioners, and as defined in
				  RCW
				   48.74.015.
Statement of actuarial opinion:
(1) "Qualified actuary" means an individual
				who:
(a) Is a member in good standing of the
				American Academy of Actuaries; and
(b) Is qualified to sign statements of
				actuarial opinion for life and health insurance company annual statements in
				accordance with the American Academy of Actuaries qualification standards for
				actuaries signing such statements or equivalent standards acceptable to the
				commissioner; and
(c) Is familiar
				with the valuation requirements applicable to life and health insurance
				companies; and
(d) Has not been
				found by the commissioner (or if so found has subsequently been reinstated as a
				qualified actuary), following appropriate notice to have:
(i) Violated any provision of, or any
				obligation imposed by, Title 48 RCW or other law or any applicable regulation
				or order of the commissioner in the course of his or her dealings as a
				qualified actuary;
(ii) Been found
				guilty of fraudulent or dishonest practices;
(iii) Demonstrated his or her incompetence,
				lack of cooperation, or untrustworthiness to act as a qualified
				actuary;
(iv) Submitted to the
				commissioner during the past five years, an actuarial opinion or memorandum
				that the commissioner rejected because it did not meet the provisions of this
				regulation or standards set by the Actuarial Standards Board; or
(v) Resigned or been removed as an actuary
				within the past five years as a result of acts or omissions indicated in any
				adverse report on examination or as a result of failure to adhere to generally
				acceptable actuarial standards; and
(e) Has not failed to notify the commissioner
				of any action taken by any commissioner of any other state similar to that
				under (d) of this subsection.
(f)
				The commissioner may accept equivalent qualifications in place of those in (a)
				and (b) of this subsection if the individual has otherwise demonstrated his or
				her actuarial competence to the satisfaction of the commissioner, and meets the
				qualifications in (c), (d), and (e) of this subsection.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-380 - Statement of actuarial opinion based on an asset adequacy analysis

Current through Register Vol. 24-14, July 15, 2024
The statement of actuarial opinion must comply with VM-30 of
				  the
Valuation Manual
, as revised from time to time by the
				  National Association of Insurance Commissioners, and as defined in
				  RCW
				   48.74.015.
Statutory Authority:
					 RCW
					  48.02.060,
					 48.74.025,
					 48.36A.250,
					 48.36A.260. 08-01-077 (Matter No.
					 R 2006-10), §
											284-07-380, filed 12/17/07,
					 effective 1/17/08. Statutory Authority:
					 RCW
					  48.02.060. 06-12-077 (Matter No. R 2006-04),
					 §
											284-07-380, filed 6/6/06,
					 effective 7/7/06. Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-380, filed 12/30/94,
					 effective 1/30/95.
Reviser's note:
The brackets and enclosed
					 material in the text of the above section occurred in the copy filed by the
					 agency.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-390 - Description of actuarial memorandum including an asset adequacy analysis and regulatory asset adequacy issues summary

Current through Register Vol. 24-14, July 15, 2024
(1) In accordance with
				RCW
				 48.74.025, the appointed actuary must prepare
				a memorandum to the company describing the analysis done in support of his or
				her opinion regarding the reserves. The memorandum must comply with VM-30 of
				the
Valuation Manual
, as revised from time to time by the
				National Association of Insurance Commissioners, and as defined in
				RCW
				 48.74.015. The memorandum must be made
				available for examination by the commissioner upon his or her request but will
				not be considered a record of the commissioner or subject to automatic filing
				with the commissioner.
(2) In
				accordance with
				RCW
				 48.74.025, the appointed actuary must prepare
				a regulatory asset adequacy issues summary according to the requirements set
				forth in VM-30 of the
Valuation Manual
, as revised from time
				to time by the National Association of Insurance Commissioners, and as defined
				in
				RCW
				 48.74.015. The regulatory asset adequacy
				issues summary must be submitted no later than April 1st of the year following
				the year for which a statement of actuarial opinion based on asset adequacy is
				required. Except for a domestic life insurance company, the regulatory asset
				adequacy issues summary must be submitted only upon request of the
				commissioner. The regulatory asset adequacy issues summary has the standing of
				a memorandum in support of the actuarial opinion, and will be kept confidential
				to the extent and under the conditions provided for in
				RCW
				 48.74.025(4).
Statutory Authority:
					 RCW
					  48.02.060,
					 48.74.025,
					 48.36A.250,
					 48.36A.260. 08-01-077 (Matter No.
					 R 2006-10), §
											284-07-390, filed 12/17/07,
					 effective 1/17/08. Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-390, filed 12/30/94,
					 effective 1/30/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › ACTUARIAL OPINION AND MEMORANDUM REGULATION › Section 284-07-400 - Additional considerations for analysis

Current through Register Vol. 24-14, July 15, 2024
(1) Any additional consideration for analysis
				must be compiled in accordance with VM-30 of the
Valuation
				Manual
, as revised from time to time by the National Association of
				Insurance Commissioners, and as defined in RCW 48.74.-015.
(2) Documentation: The appointed actuary
				shall retain on file, for at least seven years, sufficient documentation so
				that it will be possible to determine the procedures followed, the analyses
				performed, the bases for assumptions, and the results obtained.
Statutory Authority:
					 RCW
					  48.01.030,
					 48.02.060,
					 48.74.025,
					 48.36A.250 and
					 48.36A.260. 95-02-036 (Order R
					 94-26), §
											284-07-400, filed 12/30/94,
					 effective 1/30/95.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › PERMITTED ACCOUNTING PRACTICES › Section 284-07-500 - Definitions

Current through Register Vol. 24-14, July 15, 2024
For purposes of this rule:
(1) A "permitted accounting practice" is an
				accounting practice that departs from the National Association of Insurance
				Commissioners (NAIC)
Accounting Practices and Procedures
				Manual
or state prescribed accounting practices, and has been approved
				in writing by the commissioner.
(2)
				"State prescribed accounting practices" are those accounting practices that are
				incorporated directly or by reference by
				Titles
				48 RCW and 284 WAC applicable
				to domestic insurers.
(3) A
				"domestic insurer" includes an entity organized under the laws of this state as
				an insurer authorized under
				chapter
				48.05 RCW, a fraternal
				benefit society licensed under chapter 48.36A RCW, a health care service
				contractor registered under
				chapter
				48.44 RCW, a health
				maintenance organization registered under
				chapter
				48.46 RCW, a self-funded
				multiple employer welfare arrangement authorized under chapter 48.125 RCW, or
				other entity regulated under
				Title
				48 RCW and required to comply
				with the NAIC
Accounting Practices and Procedures Manual
and
				state prescribed accounting practices.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050, and
					 48.46.200. 09-03-102 (Matter No. R
					 2008-26), §
											284-07-500, filed 1/21/09,
					 effective 2/21/09.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › PERMITTED ACCOUNTING PRACTICES › Section 284-07-510 - Prior approval required for a domestic insurer to use permitted accounting practice

Current through Register Vol. 24-14, July 15, 2024
(1) If a
				domestic insurer wishes to use a permitted accounting practice, the domestic
				insurer must obtain prior written approval of the permitted accounting practice
				from the commissioner.
(2) An
				insurer must submit its request for a permitted accounting practice to the
				commissioner in writing.
(3) A
				request for a permitted accounting practice must be received by the
				commissioner more than thirty days prior to its proposed effective date and may
				not be used until thirty days after the commissioner has approved the practice
				in writing. For good cause shown, the commissioner may reduce either time
				period.
(4) Instructions as to how
				and where a domestic insurer must send its request for a permitted accounting
				practice to the commissioner may be found on the commissioner's web site at
www.insurance.wa.gov
.
(5) The insurer may not implement any
				permitted practice prior to written approval by the commissioner.
(6) An insurer may use only those permitted
				accounting practices which have been specifically approved for that insurer and
				only for the time period permitted by the commissioner.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050, and
					 48.46.200. 09-03-102 (Matter No. R
					 2008-26), §
											284-07-510, filed 1/21/09,
					 effective 2/21/09.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › PERMITTED ACCOUNTING PRACTICES › Section 284-07-520 - Information to be included in a permitted accounting practice request

Current through Register Vol. 24-14, July 15, 2024
A request for a permitted accounting practice must contain,
				  at a minimum, all of the following information:
(1) The proposed effective date and the date
				of the first filed financial statement in which the proposed permitted
				accounting practice will be reported;
(2) A detailed description of the permitted
				accounting practice being requested, including specific citation to the NAIC
Accounting Practices and Procedures Manual
or state prescribed
				accounting practices from which the proposed permitted accounting practice will
				depart;
(3) The periods, if any, in
				which the proposed permitted accounting practice was previously in
				effect;
(4) The period in which the
				proposed permitted accounting practice will be effective (e.g., specific
				beginning and ending dates);
(5)
				Specific identification of each financial statement line item and its
				respective impact from the proposed permitted accounting practice. The
				respective impact must compare the financial statements prepared in accordance
				with RCW
				 48.05.073,
				48.36A.263,
				48.43.097, or
				48.125.090(2) and
				financial statements incorporating the permitted accounting
				practices;
(6) The total financial
				impact on the capital and surplus of the proposed permitted accounting practice
				and any other previously granted permitted accounting practices. The total
				impact must compare the financial statements prepared in accordance with
				RCW
				 48.05.073,
				48.36A.263,
				48.43.097, or
				48.125.090(2) and
				financial statements incorporating the permitted accounting practice;
				and
(7) The capital and surplus
				effect of the proposed permitted accounting practice, on a legal entity basis,
				on the domestic insurer, its ultimate and intermediate parents and all
				affiliated United States insurers. The capital and surplus effect must compare
				the financial statements prepared in accordance with
				RCW
				 48.05.073,
				48.36A.263,
				48.43.097, or
				48.125.090(2) and
				financial statements incorporating the permitted accounting practice on a legal
				entity basis on the domestic insurer, its ultimate and intermediate parents and
				all affiliated United States insurers.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050, and
					 48.46.200. 09-03-102 (Matter No. R
					 2008-26), §
											284-07-520, filed 1/21/09,
					 effective 2/21/09.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › PERMITTED ACCOUNTING PRACTICES › Section 284-07-530 - Expiration of a permitted accounting practice

Current through Register Vol. 24-14, July 15, 2024
The commissioner may only approve a request to use a
				  permitted accounting practice for up to one calendar year. All permitted
				  practices will expire no later than December 31. An insurer wishing to continue
				  the permitted practice must file a new permitted practice request with the
				  commissioner. Permitted accounting practices that were previously approved by
				  the commissioner that remain in effect as of the effective date of this rule
				  which do not have a specific termination date will expire upon any change of
				  control of the insurer or December 31, 2010, whichever occurs
				  first.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050, and
					 48.46.200. 09-03-102 (Matter No. R
					 2008-26), §
											284-07-530, filed 1/21/09,
					 effective 2/21/09.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › PERMITTED ACCOUNTING PRACTICES › Section 284-07-540 - Issuer segregation of premium accounting plan

Current through Register Vol. 24-14, July 15, 2024
(1) For purposes of this section, "issuer"
				has the definition found in
				RCW
				 48.01.053.
(2) A health plan issuer, whether domestic,
				foreign or alien, must obtain the commissioner's prior written approval of its
				accounting practice plan for segregating premium allocated to a termination of
				pregnancy benefit. This requirement only applies to qualified issuers certified
				through the health benefit exchange, for qualified health plans issued on the
				exchange.
(a) The segregation plan must
				describe the accounting practices the issuer will use to ensure segregation of
				federal funds for premium and claims for nonexcepted termination of pregnancy
				benefits from other premium received from an enrollee who receives a premium
				tax benefit or cost-sharing subsidy pursuant to enrollment on the health
				benefit exchange. The segregation plan must allocate the two types of premium
				to separate accounts (allocation accounts). The segregation plan must also
				ensure that claims for the nonexcepted termination of pregnancy benefit are not
				paid from an allocation account into which federal funds are placed.
(b) The segregation plan must ensure strict
				separation of funds between the allocation accounts, and include at least one
				allocation account solely for the deposit of private premium dollars used to
				pay for abortion coverage, and a second allocation account to process premium
				dollars paid for all other covered benefits.
(c) This rule does not require an issuer to
				conduct two separate premium transactions with enrollees. For purposes of
				approval by the commissioner, the segregation of premium may occur solely as an
				accounting transaction.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › BIOGRAPHICAL AFFIDAVITS › Section 284-07-600 - Definitions

Current through Register Vol. 24-14, July 15, 2024
For the purposes of this regulation, WAC
				  284-07-610 and
				  284-07-620, called the
				  biographical affidavits regulation, the following definitions apply:
(1) A "biographical affidavit" means the
				current National Association of Insurance Commissioners (NAIC) Biographical
				Affidavit, Form 11, available on the NAIC's web site at
www.naic.org.
(2) A "domestic insurer" includes an entity
				organized under the laws of this state, domiciled in this state or using this
				state as its state of entry including:
(a) An
				insurer authorized under
				chapter
				48.05 RCW.
(b) A fraternal benefit society as defined in
				RCW
				 48.36A.010 and authorized under chapter
				48.36A RCW.
(c) A health care
				service contractor defined in
				RCW
				 48.44.010 and registered under
				chapter
				48.44 RCW.
(d) A health maintenance organization defined
				in RCW
				 48.46.020 and registered under
				chapter
				48.46 RCW.
(e) A self-funded multiple employer welfare
				arrangement defined in
				RCW
				 48.125.010 and authorized under chapter
				48.125 RCW.
(f) An alien insurer
				authorized under
				chapter
				48.05 RCW and subject to
				the requirements under chapter 48.35 RCW.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › BIOGRAPHICAL AFFIDAVITS › Section 284-07-610 - Filing requirements for foreign and alien insurers

Current through Register Vol. 24-14, July 15, 2024
(1) Foreign and alien insurers must file a
				biographical affidavit for each officer or director as specified by the NAIC
				Uniform Certificate of Authority Application (UCAA) as part of an application
				for certificate of authority or certificate of registration.
(2) Alien insurers authorized under chapter
				48.35 RCW must meet the requirements of WAC
				284-07-620.
(3) Biographical affidavits must be
				investigated and verified by a vendor authorized by the NAIC to perform a
				state, national, or international history background check. Verification
				reports must be submitted directly to the commissioner by the background
				investigation agency.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.36A.290,
					 48.44.050,
					 48.46.030, and
					 48.46.200. 11-24-087 (Matter No. R
					 2011-19), §
											284-07-610, filed 12/7/11,
					 effective 1/7/12.
Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › BIOGRAPHICAL AFFIDAVITS › Section 284-07-620 - Filing requirements for domestic insurers

Current through Register Vol. 24-14, July 15, 2024
(1) Domestic insurers must file a
				biographical affidavit:
(a) For each officer
				or director as part of an application for a solicitation permit, certificate of
				authority, or certificate of registration.
(b) Within thirty business days after:
(i) An individual becomes an officer or
				director;
(ii) A material change of
				filed information required in the biographical affidavit; or
(iii) At the request of the
				commissioner.
(c) Within
				fifteen business days, of any information concerning the conviction of an
				officer or director of a felony or the naming of an officer or director, other
				than as a party plaintiff or complainant, in a criminal or civil action in
				which fraud is an issue.
(d) Every
				thirty-six months after the last biographical affidavit filed.