Okla. Admin. Code § 365:25-7-101 Purpose and Scope

• Library: Oklahoma Administrative Code
• Edition: 2023
• Currency: Current through Vol. 41, No. 7, December 15, 2023
• Citation: Okla. Admin. Code § 365:25-7-101
• Year: 2023

(a) The purpose of this regulation is to improve the Oklahoma Insurance Department's surveillance of the financial condition of insurers by requiring:

(1) an annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants,

(2) Communication of Internal Control Related Matters Noted in an Audit, and

(3) Management's Report of Internal Control over Financial Reporting.

(b) Every insurer, as defined in O.A.C. 365:25-7-102 shall be subject to this regulation. Insurers having direct premiums written in this state of less than $1,000,000 in any calendar year and less than 1,000 policyholders or certificate holders of direct written policies nationwide at the end of the calendar year shall be exempt from this regulation for the year (unless the commissioner makes a specific finding that compliance is necessary for the commissioner to carry out statutory responsibilities) except that insurers having assumed premiums pursuant to contracts and/or treaties of reinsurance of $1,000,000 or more will not be so exempt.

(c) Foreign or alien insurers filing the audited financial report in another state, pursuant to that state's requirement for filing of audited financial reports, which has been found by the commissioner to be substantially similar to the requirements herein, are exempt from O.A.C. 365:25-7-103 through O.A.C. 365:25-7-112 of this regulation if:

(1) A copy of the audited financial report Communication of Internal Control Related Matters Noted in an Audit, and the Accountant's Letter of Qualifications that are filed with the other state are filed with the commissioner in accordance with the filing dates specified in O.A.C. 365:25-7-103, 110, and 111, respectively (Canadian insurers may submit accountants' reports...