Section 45-06-14-16 - Reporting1.Financial statements. A multiple employer welfare arrangement must prepare annual financial statements containing a balance sheet; a statement of revenues, expenses, and surplus; a statement of changes in financial position; and a schedule of investments. The statements must be prepared on forms and according to instructions prescribed by the commissioner. The financial statements must be filed with the commissioner no later than one hundred eighty days after the end of the multiple employer welfare arrangement's fund year. For multiple employer welfare arrangements with annual premiums greater than two million dollars, the financial statements must be audited by an independent certified public accountant, and the auditor's report must be submitted no later than one hundred eighty days after the end of the multiple employer welfare arrangement's fund year. 2.Quarterly reports. If the commissioner determines that a multiple employer welfare arrangement's financial integrity is such that the multiple employer welfare arrangement's ability to meet obligations promptly and in full will be significantly impaired, the commissioner may require that the multiple employer welfare arrangement file quarterly reports with the commissioner no later than thirty days after the end of the first, second, and third quarters of each fund year. The commissioner may remove the requirement to file quarterly reports when the multiple employer welfare arrangement's financial integrity is restored. A quarterly report must contain statements of the multiple employer welfare arrangement's: a. Current total cash on hand and on deposit, and total investment;b. Current total reserve for unearned and advance premiums, and total reserve for outstanding losses reported and unreported;c. Dividends declared and dividends paid during the quarter;d. Gross premiums written during the quarter;e. Losses paid during the quarter;f. Current total members; andg. Any other information that the commissioner requests.3.Extraordinary audits. As necessary, the commissioner may require a multiple employer welfare arrangement to investigate the accuracy of one or more entries on its financial statements or quarterly reports and to report its findings. The commissioner may require that a multiple employer welfare arrangement hire a qualified actuary, claims specialist, auditor, or other specialist as appropriate to the type of entry being investigated. If warranted by the investigation's findings, the commissioner may require changes in the multiple employer welfare arrangement's reserving, accounting, or recordkeeping practices. The audits are in addition to the commissioner's rights to examine self-funded multiple employer welfare arrangements directly, as applicable to insurance companies under North Dakota Century Code chapter 26.1-03. 4.Penalty. The financial statements required under subsection 1 is considered to be a multiple employer welfare arrangement's annual statement. This filing and other filings required by this chapter and related statutes are subject to North Dakota Century Code chapter 26.1-03, as applicable to licensed insurance companies for comparable filings.N.D. Admin Code 45-06-14-16
Effective January 1, 2007.Amended by Administrative Rules Supplement 2017-364, April 2017, effective 4/1/2017.General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-01-07.4, 26.1-07.1