307 - Annual statements; audited financial statements.

§  307. Annual statements; audited financial statements. (a) (1) Every  insurer and every fraternal benefit society which is authorized to do an  insurance business in this state, and  every  pension  fund,  retirement  system  or  state  fund  which is required, by any law of this state, to  report to the superintendent or is subject  to  his  examination,  shall  file  in  the  office  of  the superintendent, annually on or before the  first day of March, a statement, to be known as  its  annual  statement,  executed  in  duplicate,  verified  by  the  oath of at least two of its  principal officers, showing its condition at last year-end  or,  in  the  case  of  a  pension fund or retirement system, on such date in the year  next preceding as the superintendent may approve. Such  statement  shall  be  in  such  form  and shall contain such matters as the superintendent  shall prescribe.    (2) The superintendent shall from time to time prescribe the  form  of  such annual statement, which may be a printed document and/or electronic  media,  and  which  may  be  varied  as  to different types of insurers,  corporations, societies, pension funds and retirement systems, as  shall  seem  to  him  best adapted to elicit a true exhibit of the condition of  each such entity, in respect to every matter which he may deem material.  For every annual statement form which differs from or is in addition  to  those adopted from time to time by the national association of insurance  commissioners,  the  superintendent  shall  cause  to  be  prepared  and  furnished to every insurer, pension fund or retirement  system  required  by  law  to report to him, printed forms of the statements and schedules  required by him.    (3) The annual statement of an alien insurer may be  verified  by  the  oath  of  the  manager  or  assistant  manager thereof within the United  States, or by any other official of such insurer  authorized  by  it  to  sign  and  verify  its annual statements, if such authorization shall be  proved by filing  with  the  superintendent  such  evidence  as  he  may  require. The annual statement of an alien insurer, excepting a fraternal  benefit  society,  shall  be  a  separate  statement, to be known as its  general form of statement, of the business done within the United States  and of the assets held by or for it within the  United  States  for  the  protection  of  policyholders and creditors within the United States and  of the liabilities incurred against such assets, and shall  not  contain  any  statement  in  regard to its assets and business elsewhere. But the  superintendent  may  require  any  such  alien  insurer  to  give   such  additional information as to its total business or assets or any portion  thereof as he may determine.    (4)  Every  insurer  and  every  fraternal  benefit  society  which is  authorized to do an insurance business in this state, and every  pension  fund,  retirement  system  or state fund which is required by any law of  this state to report to the superintendent,  which  willfully  fails  to  file an annual statement as required in this section, or willfully fails  to  reply  within thirty days to a written inquiry by the superintendent  in connection therewith, shall, in addition to other penalties  provided  by  this  chapter,  be  subject,  upon  due notice and opportunity to be  heard, to a penalty of up to two hundred fifty dollars per day of delay,  not to exceed twenty-five thousand dollars in the  aggregate,  for  each  such failure.    (b)  (1)  Every  licensed  insurer,  except an assessment co-operative  property/casualty insurance company having direct  premiums  written  in  this  state  of  less  than  two  hundred  fifty thousand dollars in any  calendar year and having less than five hundred policyholders at the end  of such calendar year, shall be required to file within five  months  of  the  end of such calendar year, an annual financial statement (including  an annual financial statement of any subsidiary of the type described inparagraph nine of subsection (a) of section one  thousand  four  hundred  four  or subparagraph (B) of paragraph four of subsection (a) of section  one thousand four hundred  seven  of  this  chapter)  together  with  an  opinion  thereon  of  an  independent certified public accountant on the  financial statement of such  insurer  and  any  such  subsidiary,  which  statement  and  opinion  shall be available for public inspection at the  office of the superintendent and the principal office  of  the  insurer.  Each such insurer shall furnish the superintendent with an evaluation by  such  accountant  of  the  accounting  procedures  and  internal control  systems of the insurer that are  necessary  to  the  furnishing  of  the  opinion.  Each  such  insurer  shall  require  the  accountant  to  make  available for review by the  superintendent  the  work  papers  and  any  communications  between  the  accountant and the insurer relating to the  examination of the insurer. Any such work papers and communications made  available to the superintendent shall be kept confidential, shall not be  subject to subpoena and shall not be made public  unless,  after  notice  and  opportunity  to  be  heard,  the superintendent determines that the  interests of policyholders, stockholders or the public will be served by  the publication thereof. Each such insurer shall require the  accountant  to  notify  the superintendent if the accountant has determined that the  insurer has materially misstated its financial condition as reported  to  the  superintendent or that the insurer does not meet minimum capital or  surplus to policyholder requirements.    (2) If the insurer is part of a group  of  insurance  companies  which  utilizes   a  pooling  agreement  or  one  hundred  percent  reinsurance  agreement that affects the solvency  and  integrity  of  such  insurer's  reserves  and  such insurer cedes all of its direct and assumed business  to the pool, then such insurer may file audited consolidated or combined  financial statements  in  lieu  of  separate  annual  audited  financial  statements  provided  that a consolidating or combining exhibit be filed  that clearly reconciles amounts in the audited  financial  statement  to  the  individual  company  annual statements. In addition, an insurer may  comply by  filing  statements  prepared  in  accordance  with  generally  accepted accounting principles, provided that appropriate reconciliation  is  made  of  the differences between net income and capital and surplus  reported on that  basis  and  that  reported  in  the  annual  statutory  statement filed with the superintendent.    (3) In lieu of the requirements of this subsection, the superintendent  may accept copies of filings of audited financial statements required by  another  state  where  they are found to be substantially similar to the  requirements herein. Upon written application of any insurer, extensions  of the filing date and exemptions from the filing  requirements  may  be  granted  by the superintendent, if the superintendent finds, upon review  of the application, that compliance  would  constitute  a  financial  or  organizational hardship upon the insurer.