WSR 01-08-099




[ Insurance Commissioner Matter No. R-2001-03 -- Filed April 4, 2001, 11:04 a.m. ]

Subject of Possible Rule Making: Audited financial statements.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 48.02.060, 48.05.073, 48.43.097, 48.44.050, and 48.46.200.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The purpose of this rule making is to amend the audited financial statement rule to address two technical issues that arose with the adoption of RCW 48.05.073 and 48.43.097. The current rule requires independent CPAs to include in their CPA audit reports "any other notes required by general accepted accounting principles" ("GAAP") that may not be required to be disclosed in the notes to the annual statement. This disclosure is no longer required because RCW 48.05.073 and 48.43.097 requires GAAP-like disclosures in individual statements of statutory accounting principles ("SSAP") that comprise the NAIC accounting practices and procedure manual ("manual"). The last issue deals with specific related party and company disclosures. This requirement was removed because this disclosure is required in the Manual-SSAP 1.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Agency study. Please send any comments regarding this rule to Kacy Brandeberry, P.O. Box 40255, Olympia, WA 98504-0255, e-mail, fax (360) 664-2782, by May 7, 2001.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kacy Brandeberry, P.O. Box 40255, Olympia, WA 98504-0255, e-mail, fax (360) 664-2782.

April 4, 2001

Mike Kreidler

Insurance Commissioner

Washington State Code Reviser's Office