Texas Insurance Code - Section 401.009. Contents Of Audited Financial Report
Legal Research Home >
Texas Lawyer > Insurance Code > Texas Insurance Code - Section 401.009. Contents Of Audited Financial Report
§ 401.009. CONTENTS OF AUDITED FINANCIAL REPORT. (a) An
audited financial report required under Section 401.004 must:
(1) describe the financial condition of the insurer or
health maintenance organization as of the end of the most recent
calendar year and the results of the insurer's or health
maintenance organization's operations, changes in financial
position, and changes in capital and surplus for that year;
(2) conform to the statutory accounting practices
prescribed or otherwise permitted by the insurance regulator in the
insurer's or health maintenance organization's state of domicile;
and
(3) include:
(A) the report of an accountant;
(B) a balance sheet that reports admitted assets,
liabilities, capital, and surplus;
(C) a statement of gain or loss from operations;
(D) a statement of cash flows;
(E) a statement of changes in capital and
surplus;
(F) any notes to financial statements;
(G) supplementary data and information,
including any additional data or information required by the
commissioner; and
(H) information required by the department to
conduct the insurer's or health maintenance organization's
examination under Subchapter B.
(b) The notes to financial statements required by
Subsection (a)(3)(F) must include:
(1) a reconciliation of any differences between the
audited statutory financial statements and the annual statements
filed under this code, with a written description of the nature of
those differences;
(2) any notes required by the appropriate National
Association of Insurance Commissioners annual statement
instructions or by generally accepted accounting principles; and
(3) a summary of the ownership of the insurer or health
maintenance organization and that entity's relationship to any
affiliated company.
(c) An insurer or health maintenance organization required
under Section 401.004 to file an audited financial report that does
not retain an independent certified public accountant to perform an
annual audit for the previous year may not be required to include in
the report audited statements of operations, cash flows, or changes
in capital and surplus for the first year. The insurer or health
maintenance organization must include those statements in the
first-year report and label the statements as unaudited. The
insurer or health maintenance organization must include in the
first-year report all other reports described by Section 401.004.
(d) The commissioner shall adopt rules governing the
information to be included in the audited financial report under
Subsection (a)(3)(H).
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 401.002 401.003 401.004 401.005 401.006 401.007 401.008 401.009 401.010 401.011 401.012 401.013 401.014 401.015 401.016
Last modified: August 11, 2007
|
