Section 0780-01-54-.09 - FINANCIAL STATEMENTS AND OTHER REPORTS(1) Each pool shall submit to the Commissioner an unaudited statement of financial condition on or before April 1 of each year for the pool's prior fiscal year. Such statement shall be signed by the administrator of the pool and the chairman of the board of trustees.(2) Each pool shall submit to the Commissioner a statement of financial condition audited by an independent certified public accountant on or before the last day of the sixth (6th) month following the end of the pool's fiscal year. Such statement shall also be accompanied by a non-refundable filing fee of five hundred fifteen dollars ($515).(a) The pool must submit an unaudited management report indicating the current financial condition of each fund year.(b) A pool shall be given thirty (30) additional days in which to file its audited financial statement if the pool notifies the Commissioner in writing at least thirty (30) days prior to the date the audited financial statement is to be filed. The Commissioner may grant such additional extensions as deemed appropriate.(3) In determining the financial condition of the pool, the Commissioner may, in the Commissioner's sole discretion, non-admit the following assets of the pool for any regulatory purpose:(a) Account receivables over ninety (90) days;(c) Office furniture, computer systems with a value less than fifty thousand dollars ($50,000), and vehicles;(e) Loans on personal security and cash advances;(f) Discounting reserves; and(4) The commissioner may hold a hearing in accordance with the procedures set out in T.C.A. Title 4, Chapter 5, Part 3, to determine whether a certified accountant is qualified and, considering the evidence presented, may rule that the accountant is not qualified for purposes of expressing his or her opinion on the financial statements in the annual audited financial statement made pursuant to this Chapter and require the insurer to replace the accountant with another that the commissioner deems appropriate.(5) The financial statements required by this Rule may be prepared in accordance with Generally Accepted Accounting Principles in effect for the period covered by the statement or such other accounting method(s) approved by the Commissioner.(6) The Commissioner may prescribe the format and frequency of other reports which may include, but shall not be limited to, payroll audit reports, summary loss reports, and quarterly financial statements. Quarterly loss ratios shall be reported on an accident year basis within thirty (30) days from the end of the quarter.(7) Failure to file any of the financial statements required by this Rule on a timely basis authorizes the Commissioner to suspend or revoke the certificate of authority of a pool under Rule 0780-01-54-.22. In lieu of suspending or revoking the pool's certificate of authority, the Commissioner may assess a civil penalty in the amount of one hundred dollars ($100) per day for each day of delinquency, or in such other amount as allowed by statute.Tenn. Comp. R. & Regs. 0780-01-54-.09
Original rule filed April 8, 1986; effective May 8, 1986. Repeal and new rule filed August 31, 2005; effective November 14, 2005. Amendments filed December 31, 2008; elective March 16, 2009.Authority: T.C.A. §§ 4-5-101 et seq., 50-6-405(c) and (h) and 56-4-101.