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Annual Statement Requirements
Since its incorporation, petitioner has been regulated by
the Wisconsin Commissioner of Insurance (WCI). The WCI is
responsible for, among other things, examining financial
practices and market conduct of Wisconsin insurance companies.
Petitioner is required to file annual statements with the WCI and
to deliver each year a statement of actuarial opinion regarding
the adequacy of its reserves.
The National Association of Insurance Commissioners (NAIC),
an organization of State insurance commissioners, promulgates
standard forms for insurance companies to use in preparing their
annual statements. Insurance companies are required to prepare
their annual statements using a system of accounting known as the
statutory or annual statement method, which does not necessarily
conform to generally accepted accounting principles that govern
the preparation of an insurance company’s financial statements.
Annual statement reporting requires insurance companies to
estimate their unpaid losses as of the close of each calendar
year. These estimates of unpaid losses are intended to reflect
the insurer’s liability for future payments on incurred claims,
which include insured events for which a claim has been filed
(reported losses) as well as insured events for which no claim
has yet been filed (incurred but not reported losses).
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Last modified: May 25, 2011