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(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(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. Ins 50.01(6g)(6g) “Internal audit function” means a person or persons who provide independent, objective, and reasonable assurance designed to add value and improve an organization’s operations and accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Ins 50.01(6m)(6m) “Internal control over financial reporting” means a process effected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the reliability of financial statements, including the items specified in s. Ins 50.06 (2) (b) to (3), and includes those policies and procedures that: Ins 50.01(6m)(a)(a) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets; Ins 50.01(6m)(b)(b) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements, including those items specified in s. Ins 50.06 (2) (b) to (3), and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and Ins 50.01(6m)(c)(c) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the audited financial statements, including those items specified in s. Ins 50.06 (2) (b) to (3). Ins 50.01(7)(7) “Policyholder surplus” means capital and surplus. Ins 50.01(7d)(7d) “SEC” means the United States Securities and Exchange Commission. Ins 50.01(7h)(7h) “Section 404” means section 404 of the Sarbanes-Oxley Act of 2002 and the SEC’s rules and regulations promulgated thereunder. Ins 50.01(7p)(7p) “Section 404 Report” means management’s report on internal control over financial reporting as defined by the SEC and the related attestation report of the independent certified public accountant. Ins 50.01(7t)(7t) “SOX Compliant Entity” means an entity that either is required to be compliant with, or voluntarily is compliant with, all of the following provisions of the Sarbanes-Oxley Act of 2002: Ins 50.01(7t)(a)(a) The preapproval requirements of section 201, section 10 A (i), of the Securities and Exchange Act of 1934; Ins 50.01(7t)(b)(b) The audit committee independence requirements of section 301, section 10 A (m) (3) of the Securities and Exchange Act of 1934; and Ins 50.01(7t)(c)(c) The internal control over financial reporting requirements of Section 404, item 308 of SEC Regulation S-K. Ins 50.01(8)(8) “State of domicile” means the state where an insurer is domiciled or, for an alien insurer, its port of entry state. Ins 50.01(8m)(8m) “Ultimate controlling person” means a person who is not controlled by any other person. Ins 50.01(9)(9) “Work papers” means records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the independent certified public accountant’s examination of the financial statements of an insurer. “Work papers” include, but are not limited to, audit planning documentation; audit guides; work programs; analyses; memoranda; letters of confirmation and representation; abstracts of company documents; financial compilations, even if not produced during a full audit; and schedules or commentaries prepared or obtained by the independent certified public accountant in the course of examination of the financial statements of an insurer or which support the opinion of the independent certified public accountant regarding the financial statements. Ins 50.01 HistoryHistory: Cr. Register, July, 1993, No. 451, eff. 8-1-93; correction in (4) made under s. 13.93 (2m) (b) 7., Stats., Register, June, 2001, No. 546; CR 07-023: cr. (4m), Register September 2007 No. 621, eff. 10-1-07; CR 08-053: cr. (1g), (1r), (4g), (4r), (6m), (7d), (7h), (7p), (7t) and (8m) Register December 2008 No. 636, eff. 1-1-09; CR 17-015: am. (1r), cr. (6g) Register December 2017 No. 744, eff. 1-1-18; CR 22-075: am. (9) Register June 2023 No. 810, eff. 7-1-23. Ins 50.02Ins 50.02 Applicability. Unless otherwise ordered by the commissioner, this subchapter applies to all insurers except: Ins 50.02(1)(1) An insurer is not subject to this subchapter for a calendar year in which the insurer has: