-
Current through October 23, 2012
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 jurisdiction where it is domiciled. The annual audited financial report shall include the following:
(1) Report of an independent certified public accountant;
(2) Balance sheet reporting admitted assets, liabilities, capital, and surplus;
(3) Statement of operations;
(4) Statement of cash flows;
(5) Statement of changes in capital and surplus;
(6) Notes to the financial statements, which shall:
(A) Be those required by the appropriate NAIC annual statement instructions and the NAIC Accounting Practices and Procedures Manual; and
(B) Include a reconciliation of differences, if any, between the audited statutory financial statement and the annual statement filed pursuant to Chapter 19 of this title and a written description of the nature of these differences; and
(7) The financial statements included in the 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 of the insurer filed with the Mayor, and the financial statement shall be comparative, presenting the amounts as of December 31st of the current year and the amounts as of the immediately preceding December 31st. However, in the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted.
(Oct. 21, 1993, D.C. Law 10-48, § 4, 40 DCR 6102; Feb. 27, 1996, D.C. Law 11-90, § 5(a), 42 DCR 7155; Mar. 27, 2003, D.C. Law 14-255, § 2, 50 DCR 236; Mar. 12, 2011, D.C. Law 18-317, § 2(c), 57 DCR 12418.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 35-3203.
Effect of Amendments
D.C. Law 14-255 rewrote par. (6) which had read:
"(6) Notes to financial statements, including notes required by the appropriate NAIC annual statement instructions and any other notes required by generally accepted accounting principles. The notes shall also include:
"(A) A reconciliation of differences, if any, between the audited statements to be filed with the Mayor and the NAIC annual statement filed pursuant to the insurance laws of the District of Columbia; and
"(B) A summary of ownership and relationships of the insurer and all affiliated companies; and"
D.C. Law 18-317, in the lead-in text, substituted "jurisdiction where it is domiciled" for "Mayor"; and rewrote par. (6), which formerly read:
"(6) Notes to the financial statements, including notes required by the appropriate NAIC's annual statement instructions, shall include a reconciliation of differences, if any, between the audited financial report and the annual financial statement filed on March 1st with the Mayor, with a written description of the nature of the differences; and"
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 5(a) of Insurance Omnibus Temporary Amendment Act of 1995 (D.C. Law 11-36, September 8, 1995, law notification 42 DCR 5305).
Emergency Act Amendments
For temporary amendment of section, see § 6(a) of the Insurance Omnibus Emergency Amendment Act of 1995 (D.C. Act 11-48, May 15, 1995, 42 DCR 2544) and § 5(a) of the Insurance Omnibus Congressional Recess Emergency Amendment Act of 1995 (D.C. Act 11-97, July 19, 1995, 42 DCR 3844).
For temporary (90 day) amendment of section, see § 2(c) of Annual Financing Reporting Modernization Emergency Amendment Act of 2010 (D.C. Act 18-665, December 28, 2010, 58 DCR 80).
For temporary (90 day) amendment of section, see § 2(c) of Annual Financial Reporting Modernization Congressional Review Emergency Amendment Act of 2011 (D.C. Act 19-30, March 15, 2011, 58 DCR 2591).
Legislative History of Laws
For legislative history of D.C. Law 10-48, see Historical and Statutory Notes following § 31-301.
Law 11-90, the "Insurance Omnibus Amendment Act of 1995," was introduced in Council and assigned Bill No. 11-182, which was referred to the Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on November 7, 1995, and December 5, 1995, respectively. Signed by the Mayor on December 18, 1995, it was assigned Act No. 11-173 and transmitted to both Houses of Congress for its review. D.C. Law 11-90 became effective on February 27, 1996.
Law 14-255, the "Annual Audited Financial Reports Amendment Act of 2002", was introduced in Council and assigned Bill No. 14-257, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on November 7, 2002, and December 3, 2002, respectively. Signed by the Mayor on December 23, 2002, it was assigned Act No. 14-552 and transmitted to both Houses of Congress for its review. D.C. Law 14-255 became effective on March 27, 2003.
For history of Law 18-317, see notes under § 31-301.
