Section 45-03-20-01 - Purpose and scope1. The purpose of this chapter is to improve the North Dakota insurance department's surveillance of the financial condition of insurers by requiring: a. An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants; b. Communication of internal control-related matters noted in an audit; and c. Management's report of internal control over financial reporting. 2. Every insurer, as defined in section 45-03-20-02, is subject to this chapter, except a company, so defined, which is licensed only in North Dakota. The commissioner may exempt an insurer, or type of insurer, from the requirements of this chapter. Insurers having direct premiums written in this state of less than one million dollars in any calendar year and less than one thousand policyholders or certificate holders of direct written policies nationwide at the end of the calendar year are exempt from this chapter for that year, unless the commissioner makes a specific finding that compliance is necessary for the commissioner to carry out statutory responsibilities, except that insurers having assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars or more will not be so exempt. 3. Foreign or alien insurers filing the audited financial report in another state, pursuant to the other state's requirement for filing of audited financial reports which has been found by the commissioner to be substantially similar to the requirements herein, are exempt from sections 45-03-20-03 through 45-03-20-12 if: a. A copy of the audited financial report, communication of internal control-related matters noted in an audit, and the accountant's letter of qualifications which are filed with another state are filed with the commissioner in accordance with the filing dates specified in sections 45-03-20-03, 45-03-20-10, and 45-03-20-11, respectively. Canadian insurers may submit accountants' reports as filed with the office of the superintendent of financial institutions, Canada. b. A copy of any notification of adverse financial condition report filed with another state is filed with the commissioner within the time specified in section 45-03-20-09. 4. Foreign or alien insurers required to file management's report of internal control over financial reporting in another state are exempt from filing the report in this state provided the other state has substantially similar reporting requirements and the report is filed with the commissioner of the other state within the time specified. 5. This chapter may not prohibit, preclude, or in any way limit the insurance commissioner from ordering or conducting or performing examinations of insurers under the rules and regulations of the North Dakota insurance department and the practices and procedures of the North Dakota insurance department. N.D. Admin Code 45-03-20-01
Effective October 1, 1995; amended effective April 1, 1996; April 1, 2010.General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07, 26.1-03-11.1