Administrative Code

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Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau of Insurance
Chapter 270. Rules Governing Annual Financial Reporting

14VAC5-270-60. Contents of annual Audited Financial Report.

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 flow, and changes in capital and surplus for the year then ended in conformity with statutory accounting practices prescribed, or otherwise permitted, by the insurer's state of domicile. The annual Audited Financial Report shall include the following:

1. Report of independent certified public accountant.

2. Balance sheet reporting admitted assets, liabilities, capital, and surplus.

3. Statement of operations.

4. Statement of cash flow.

5. Statement of changes in capital and surplus.

6. Notes to financial statements. These notes shall be those required by the appropriate annual statement and NAIC accounting practices and procedures manual. The notes shall include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to §§ 38.2-1300, 38.2-4126 or 38.2-4307 of the Code of Virginia with a written description of the nature of these differences.

7. The financial statements included in the annual 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 the insurer filed with the commission, and the financial statements shall be comparative, presenting the amounts as of December 31 of the current year and the amounts as of the immediately preceding 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

§§ 12.1-13 and 38.2-223 of the Code of Virginia.

Historical Notes

Derived from Regulation 39, Case No. INS910072, § 7, eff. September 1, 1991; amended, Virginia Register Volume 16, Issue 5, eff. January 1, 2000; Volume 24, Issue 12, eff. January 1, 2010.

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