Section 45-03-20-04 - Contents of annual audited financial report The annual audited financial report must report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cashflows, and changes in capital and surplus for the year then ended in conformity with statutory accounting practices prescribed, or otherwise permitted, by the department of insurance of the state of domicile.
The annual audited financial report must include the following:
1. Report of independent certified public accountant. 2. Balance sheet reporting admitted assets, liabilities, capital, and surplus. 3. Statement of operations. 4. Statement of cashflows. 5. Statement of changes in capital and surplus. 6. Notes to financial statements. These notes must be those required by the appropriate national association of insurance commissioners annual statement instructions and the national association of insurance commissioners accounting practices and procedures manual. These notes must include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to North Dakota Century Code section 26.1-03-07 with a written description of the nature of these differences. 7. The financial statements included in the audited financial report must 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 commissioner, and the financial statement must be comparative, presenting the amounts as of December thirty-first of the current year and the amounts as of the immediately preceding December thirty-first. However, in the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted. N.D. Admin Code 45-03-20-04
Effective October 1, 1995; amended effective August 1, 2000; April 1, 2010.General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-03-07, 26.1-03-11.1