§ 58-49-60. Annual reports; actuarial certifications; quarterly reports.
§58‑49‑60. Annual reports; actuarial certifications; quarterlyreports.
(a) Every MEWA shall,within 150 days after the end of each of its fiscal years or within any suchextension of time that the Commissioner for good cause grants, file a reportwith the Commissioner, on forms prescribed by the Commissioner and verified bythe oath of a member of the board of trustees and by an administrativeexecutive appointed by the board, showing its financial condition on the lastday of the preceding fiscal year. The report shall contain an auditedfinancial statement of the MEWA prepared in accordance with statutoryaccounting principles, including its balance sheet and a statement of theoperations for the preceding fiscal year certified by an independent certifiedpublic accountant. The report shall also include an analysis of the adequacyof reserves and contributions or premiums charged, based on a review of pastand projected claims and expenses.
(b) In addition to theinformation called for and furnished in connection with the annual report, ifreasonable grounds exist, the Commissioner may request information thatsummarizes paid and incurred expenses and contributions or premiums received;and may request evidence satisfactory to the Commissioner that the MEWA isactuarially sound. That information and evidence shall be furnished by theMEWA not later than 30 days after the request, unless the Commissioner, forgood cause, grants an extension.
(c) Annually, inconjunction with the annual report required in subsection (a) of this section,the MEWA shall submit an actuarial certification prepared by an independentqualified actuary that indicates:
(1) The MEWA isactuarially sound, with the certification considering the rates, benefits, andexpenses of, and any other funds available for the payment of obligations of,the MEWA;
(2) The rates beingcharged and to be charged for contracts are actuarially adequate to the end ofthe period for which rates have been guaranteed;
(3) Incurred but notreported claims and claims reported but not fully paid have been adequatelyprovided for; and
(4) Such otherinformation relating to the performance of the MEWA that is required by theCommissioner.
(d) If reasonablegrounds exist, the Commissioner may require a MEWA to file quarterly, within 45days after the end of each of its fiscal quarters, an unaudited financialstatement on a form prescribed by the Commissioner, verified by the oath of amember of the board of trustees and an administrative executive appointed by theboard, showing its financial condition on the last day of the precedingquarter.
(e) Any MEWA that failsto file a report as required by this section is subject to G.S. 58‑2‑70;and after notice and opportunity for hearing, the Commissioner may suspend theMEWA's authority to enroll new insureds or to do business in this State whilethe failure continues. (1991, c. 611, s. 1.)