Date of Adoption: October 18, 2001.
Purpose: The adopted rules clarify the filing requirements in WAC 284-07-130. The adopted rules address technical issues that arose after the enactment of RCW 48.05.073 and 48.43.097. The adopted rules harmonize the relationship between those RCWs and WAC and the NAIC Accounting Practices and Procedures Manual.
Citation of Existing Rules Affected by this Order: Amending WAC 284-07-130.
Statutory Authority for Adoption: RCW 48.02.060, 48.05.073, 48.43.097, 48.44.050, 48.46.200.
Adopted under notice filed as WSR 01-11-167 on May 23, 2001.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making:
Pilot Rule Making:
or Other Alternative Rule Making:
Effective Date of Rule: Thirty-one days after filing.
October 18, 2001
AMENDATORY SECTION(Amending Order R 94-2, filed 1/27/94, effective 2/27/94)
WAC 284-07-130 Contents of annual audited financial report. (1) The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows, and changes in capital and surplus for the year then ended in conformity with statutory accounting practices prescribed, or otherwise permitted, by the commissioner.
(2) The annual audited financial report shall include the following:
(a) Report of independent certified public accountant.
(b) Balance sheet reporting admitted assets, liabilities, capital, and surplus.
(c) Statement of operations.
(d) Statement of cash flows.
(e) Statement of changes in capital and surplus.
(f) Notes to financial statements. These notes shall be
those required by the appropriate NAIC Annual Statement
Instructions and ((
any other notes required by generally accepted
accounting principles and)) NAIC Accounting Practices and
Procedures Manual. The notes shall (( also)) include(( :
(i))) a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to RCW 48.05.250, 48.05.073, 48.43.050, 48.43.097 48.44.095, or 48.46.080 with a written description of the nature of these differences.
(ii) A summary of ownership and relationships of the
insurer and all affiliated companies.))
(g) The financial statements included in the audited financial report shall 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 statements shall be comparative, presenting the amounts as of December 31. However, in the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted.
[Statutory Authority: RCW 48.02.060, 48.43.140, 48.44.050 and 48.46.200. 94-04-045 (Order R 94-2), § 284-07-130, filed 1/27/94, effective 2/27/94. Statutory Authority: RCW 48.02.060. 92-19-040 (Order R 92-10), § 284-07-130, filed 9/9/92, effective 10/10/92.]