N.Y. Comp. Codes R. & Regs. tit. 11 § 84.1

Current through Register Vol. 46, No. 51, December 18, 2024

Section 84.1 - Reporting of financial condition under generally accepted accounting principles

(a) In registration statements (prospectuses) of domestic stock insurance companies and of persons controlling or seeking to acquire control of domestic stock insurance companies which are filed with the Securities and Exchange Commission (SEC) and which are subject to prior review and approval by this department, and in reports issued to the stockholders of domestic insurers which are not controlled insurers (as defined in section 1501 of the Insurance Law), the presentation of statements of financial condition based upon generally accepted accounting principles (GAAP) will be permitted.

(b) Such registration statements and reports to stockholders shall also include statements prepared on a statutory basis, and shall contain appropriate reconciliations of differences between the GAAP basis and the statutory basis. Footnotes shall be presented in conjunction with the financial statements which will adequately describe the bases and methods used in adjusting from a statutory basis to a GAAP basis. The inclusion of additional explanatory material which is satisfactory to this department shall be required if deemed necessary.

(c) Such registration statements and reports to stockholders containing financial statements on a GAAP basis shall also contain the following statement in bold face type on the first page on which a GAAP statement is first presented:

"The New York State Insurance Department recognizes only statutory accounting practices for determining and reporting the financial condition and results of operations of an insurance company, for determining its solvency under the New York Insurance Law, and for determining whether its financial condition warrants the payment of a dividend to its stockholders. No consideration is given by the Department to financial statements prepared in accordance with generally accepted accounting principles in making such determinations".

The statement shall also refer to the discussion of the principal differences between statutory accounting practices and GAAP contained in the accountant's notes to the financial statements.

(d) Advertisements, signs, pamphlets, circulars, cards or other public announcements purporting to make known the separate financial condition of any domestic insurer may show such condition on a GAAP basis provided that the financial condition on a statutory basis is also shown and the statement referred to in subdivision (c) of this section is presented in conjunction with the GAAP statement.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 84.1