Chapter Ins 50

Chapter Ins 50

ANNUAL AUDITED FINANCIAL REPORTS, ANNUAL FINANCIAL
STATEMENTS AND EXAMINATIONS

Subchapter I — Annual Audited Financial Reports

Ins 50.01   Definitions.

Ins 50.02   Applicability.

Ins 50.03   Filing by exempt foreign and alien insurers.

Ins 50.04   Authority to obtain information or examine not restricted.

Ins 50.05   General requirements related to filing and extensions for filing of annual audited financial reports and audit committee appointment.

Ins 50.06   Contents of annual audited financial report.

Ins 50.07   Designation of independent certified public accountant.

Ins 50.08   Qualifications of independent certified public accountants.

Ins 50.09   Consolidated or combined audits.

Ins 50.10   Scope of audit and report of independent certified public accountant.

Ins 50.11   Notification of adverse financial condition.

Ins 50.12   Communication of internal control related matters noted in an audit.

Ins 50.13   Accountant’s letter of qualifications.

Ins 50.14   Availability and maintenance of CPA work papers.

Ins 50.15   Requirements for audit committees.

Ins 50.155   Internal audit function requirements.

Ins 50.16   Conduct of insurer in connection with the preparation of required reports and documents.

Ins 50.17   Management’s report of internal control over financial reporting.

Ins 50.18   Exemptions and effective dates.

Ins 50.19   Canadian and British companies.

Subchapter II — Annual Financial Statements

Ins 50.20   Insurers to file annual financial statements.

Ins 50.25   Insurers to file with the national association of insurance commissioners.

Ins 50.30   Actuarial opinion required.

Subchapter III — Examinations

Ins 50.50   Examinations.

Ins 50.55   Examination of foreign and alien insurers.

Subchapter IV — Actuarial Opinion

Ins 50.60   Definitions.

Ins 50.65   Actuarial opinion required.

Ins 50.67   Reserves.

Ins 50.68   Reliance on actuary opinion.

Subchapter V — Actuarial Opinion and Memorandum Regulation

Ins 50.70   Purpose.

Ins 50.71   Authority.

Ins 50.72   Scope.

Ins 50.73   Definitions.

Ins 50.75   General requirements.

Ins 50.76   Required opinions.

Ins 50.78   Statement of actuarial opinion based on an asset adequacy analysis.

Ins 50.79   Description of the actuarial memorandum including an asset adequacy analysis and regulatory asset adequacy issues summary.

Subchapter VI — Risk Retention and Purchasing Groups

Ins 50.85   Risk retention groups and risk purchasing groups.

Ch. Ins 50 Note Note: Chapter Ins 50 was created as an emergency rule effective March 12, 1993.

subch. I of ch. Ins 50 Subchapter I — Annual Audited Financial Reports

Ins 50.01 Ins 50.01 Definitions. In this chapter:

Ins 50.01(1) (1) “Alien insurer” has the meaning provided under s. 600.03 (2), Stats.

Ins 50.01(1g) (1g) “Affiliate” of, or person “affiliated” with, a specific person means a person that directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.

Ins 50.01(1r) (1r) “Audit committee” means a committee or equivalent body established by the board of directors of an entity for the purpose of overseeing the accounting and financial reporting processes of an insurer or group of insurers, the internal audit function of an insurer or group of insurers, and audits of financial statements of the insurer or group of insurers. The audit committee of any entity that controls a group of insurers may be deemed to be the audit committee for one or more of the controlled insurers solely for the purposes of this chapter at the election of the controlling person under s. Ins 50.15 (6). If an audit committee is not designated by the insurer, the insurer’s entire board of directors shall constitute the audit committee.

Ins 50.01(2) (2) “Audited financial report” means a financial report prepared and conforming to s. Ins 50.06.

Ins 50.01(3) (3) “Executive officer” means any individual charged with the active management and control in an executive capacity of a person, whether incorporated or unincorporated and includes, but is not limited to, a chair of the board, president, vice president, treasurer, secretary, controller, and any individuals performing similar functions.

Ins 50.01(4) (4) “Foreign insurer” has the meaning provided under s. 600.03 (20), Stats.

Ins 50.01(4g) (4g) “Group of insurers” means those licensed insurers included in the reporting requirements of ch. 617, Stats., or a set of insurers identified by the insurers’ management or controlling person for the purpose of assessing the effectiveness of internal control over financial reporting.

Ins 50.01(4m) (4m) “Indemnification” means an agreement of indemnity or a release from liability where the intent or effect is to shift or limit in any manner the potential liability of the person or firm for failure to adhere to applicable auditing or professional standards, whether or not resulting in part from knowing or other misrepresentations made by the insurer or its representatives.

Ins 50.01(4r) (4r) “Independent board member” has the meaning given in s. Ins 50.15 (4).

Ins 50.01(5) (5) “Independent certified public accountant” means:

Ins 50.01(5)(a) (a) An independent certified public accountant, or independent accounting firm, in good standing with the American institute of certified public accountants and in all states in which the accountant or firm is licensed, or required to be licensed, to practice; or

Ins 50.01(5)(b) (b) For Canadian and British companies, a Canadian chartered or British chartered accountant.