Oklahoma § 36-311A.2 - Purpose of act

§ 36-311A.2. Purpose of act

A. The purpose of the Oklahoma Annual Financial Report Act is

to improve the surveillance of the Insurance Commissioner over the

financial condition of insurers by requiring:

1. An annual audit of financial statements reporting the

financial position and the results of operations of insurers by

independent certified public accountants;

2. Communication of Internal Control Related Matters Noted in

an Audit; and

3. Management's Report of Internal Control over Financial

Reporting.

B. Every insurer as defined in Section 311A.3 of this title

shall be subject to the Oklahoma Annual Financial Report Act.

Insurers having direct premiums written in this state of less than

One Million Dollars ($1,000,000.00) in any calendar year and less

than one thousand policy holders or certificate holders of direct

written policies nationwide at the end of the calendar year shall be

exempt from the Oklahoma Annual Financial Report Act for the year

unless the Commissioner makes a specific finding that compliance is

necessary for the Commissioner to carry out statutory

responsibilities. Insurers having assumed premiums pursuant to

contracts and treaties of reinsurance of One Million Dollars

($1,000,000.00) or more will not be so exempt.

C. Foreign or alien insurers filing the audited financial

reports in another state, pursuant to the requirement of that state

for filing of audited financial reports, which has been found by the

Commissioner to be substantially similar to the requirements of the

Oklahoma Annual Financial Report Act, are exempt from Sections

311A.4 through 311A.13 of this title if:

Oklahoma Statutes - Title 36. Insurance

1. A copy of the audited financial report, Communication of

Internal Control Related Matters Noted in an Audit, and the

Accountant's Letter of Qualifications that are filed with the other

state are filed with the Commissioner in accordance with the filing

dates specified in Sections 311A.4, 311A.11 and 311A.12 of this

title, respectively. Canadian insurers may submit accountants'

reports as filed with the Office of the Superintendent of Financial

Institutions, Canada; and

2. A copy of any Notification of Adverse Financial Condition

Report filed with the other state is filed with the Commissioner

within the time specified in Section 311A.10 of this title.

D. Foreign or alien insurers required to file Management's

Report of Internal Control over Financial Reporting in another state

are exempt from filing the Report in this state provided the other

state has substantially similar reporting requirements as determined

by the Commissioner and the Report is filed with the Commissioner of

the other state within the time specified.

E. The Oklahoma Annual Financial Report Act shall not prohibit,

preclude, or in any way limit the Commissioner from ordering or

conducting or performing examinations of insurers under the rules of

the Insurance Department and the practices and procedures of the

Insurance Department.

Added by Laws 2009, c. 176, § 4, eff. Nov. 1, 2009. Amended by Laws

2019, c. 28, § 2, eff. Nov. 1, 2019.