58-43-2. Annual audit required--Filing audited financial report--Extension of filing date--Audit committee.

Each insurer having direct premiums written in this state of more than one million dollars in any calendar year and more than one thousand policyholders or certificate holders of directly written policies nationwide at the end of a calendar year is required to have an annual audit by an accountant of the financial statements reporting the financial position and the results of operations. This chapter also applies to insurers having assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars or more. The director may require insurers with less than one million dollars in direct premiums and less than one thousand policyholders or certificate holders to have independent audits to determine the financial status of the insurer.

The insurer shall file an audited financial report with the director on or before June first for the immediately preceding year. The director may require an insurer to file an audited financial report earlier than June first with ninety days advance notice to the insurer.

Extensions of the June first filing date may be granted by the director for thirty-day periods upon showing by the insurer and its accountant to the director that there is good cause for an extension. The request for extension shall be submitted in writing to the director not less than ten days prior to the due date in sufficient detail to permit the director to make an informed decision.

If an extension is granted, a similar extension of thirty days is granted for the filing of the Management's Report of Internal Control over Financial Reporting.

Each insurer required to file an annual audited financial report pursuant to this chapter shall designate a group of individuals as constituting the insurer's audit committee. The audit committee of an entity that controls an insurer may be deemed to be the insurer's audit committee for purposes of this chapter at the election of the controlling person.

Source: SL 1992, ch 357, § 2; SL 2009, ch 271, § 3.

58-43-3. Foreign or alien insurers--Exemption.

Foreign or alien insurers, filing audited financial reports in another state which report has been found by the director to be substantially similar to the requirements of § 58-43-4, are exempt if:

(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 which are filed with the other state are filed with the director in accordance with the filing dates specified in §§ 58-43-2, 58-43-14, and 58-43-15. Canadian insurers may submit accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada;

(2)    A copy of any notification of adverse financial condition report filed with that other state is filed with the director within the time specified in § 58-43-14.

This section does not prohibit, preclude or in any way limit the director of insurance from ordering or conducting or performing examinations of insurers under this title.

Source: SL 1992, ch 357, § 3; SL 2009, ch 271, § 4.

58-43-4. Annual audited financial report--Contents.

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 flows, and changes in capital and surplus for the year then ended. The audit shall reflect the statutory accounting practices prescribed, or otherwise permitted, by the division. The report shall include the following:

(1)    Report of the accountant;

(2)    Balance sheet reporting admitted assets, liabilities, capital, and surplus;

(3)    Statement of operations;

(4)    Statement of cash flows;

(5)    Statement of changes in capital and surplus; and

(6)    Notes to financial statements.

Any notes to financial statements shall be prepared in accordance with the Annual Statement Instructions Manual and the Accounting Practices and Procedures Manual prescribed by the National Association of Insurance Commissioners as promulgated by rules by the director pursuant to chapter 1-26 and shall also include a reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to § 58-6-75 with a written description of the nature of these differences.

Source: SL 1992, ch 357, § 4; SL 2003, ch 257, § 1; SL 2009, ch 271, § 5.

58-43-5. Financial statements.

The financial statements included in the 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 filed pursuant to § 58-6-75 and the financial statement shall be comparative, presenting the amounts as of December thirty-first of the current year and the amounts as of the immediately preceding December thirty-first. In the first year in which an insurer is required to file an audited financial report, the comparative data may be omitted.

Source: SL 1992, ch 357, § 5.

58-43-5.1. Examination of financial statements by accountant.

Financial statements furnished pursuant to § 58-43-4 shall be examined by the independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with AU Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit as of January 1, 2009, the independent certified public accountant should obtain an understanding of internal control sufficient to plan the audit. To the extent required by AU Section 319, for those insurers required to file a Management's Report of Internal Control over Financial Reporting pursuant to § 58-43-16.13, the independent certified public accountant should consider, as that term is defined in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards as of January 1, 2009, the most recently available report in planning and performing the audit of the statutory financial statements. Consideration shall be given to the procedures illustrated in the Financial Condition Examiners Handbook promulgated by the National Association of Insurance Commissioners as adopted by the director by rules promulgated pursuant to chapter 1-26, as the independent certified public accountant deems necessary.

Source: SL 2009, ch 271, § 14.

58-43-6. Registration of retained accountant--Letter of acknowledgment from accountant.

Each insurer required to file an annual audited financial report shall, within sixty days after becoming subject to the requirement, register with the director in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit set forth in this chapter. Any insurer not retaining an independent certified public accountant on July 1, 2009, shall register the name and address of the insurer's retained independent certified public accountant not less than six months before the date when the first audited financial report is to be filed.

The insurer shall obtain a letter from the accountant, and file a copy with the director, stating that the accountant is aware of the laws of the state of domicile that relate to accounting and financial matters and affirming that the accountant will express his or her opinion on the financial statements in terms of their conformity to the statutory accounting practices prescribed or permitted and specify any exceptions.

Source: SL 1992, ch 357, § 6; SL 2009, ch 271, § 6.

58-43-7. Notification of dismissal or resignation of insurer's accountant--Reporting disagreements.

If an accountant who was the accountant for the immediately preceding filed audited financial report is dismissed or resigns, the insurer shall mail notification to the director within five business days of the dismissal or resignation. The insurer shall mail the director a separate letter within ten business days of the above notification stating whether in the twenty-four months preceding this dismissal or resignation there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of the former accountant, would have caused him to make reference to the subject matter of the disagreement in connection with his opinion.

Source: SL 1992, ch 357, § 7.

58-43-8. Explanation of disagreements between insurer and accountant--Letters from both insurer and accountant to director.

The disagreements required in § 58-43-7 to be reported include both those resolved to the former accountant's satisfaction and those not resolved to the former accountant's satisfaction. Disagreements contemplated by this section are those that occur at the decision-making level, such as, between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report. The insurer shall request in writing the former accountant to furnish a letter addressed to the insurer stating whether the accountant agrees with the statements contained in the insurer's letter and, if not, stating the reasons for which he does not agree. The insurer shall furnish the responsive letter from the former accountant to the director together with its own. The accountant shall also furnish a copy of the responsive letter to the director.

Source: SL 1992, ch 357, § 8.

58-43-9. Qualifications of accountant.

An accountant shall be recognized as qualified as long as the accountant conforms to the standards of the profession, as contained in the Code of Professional Ethics of the American Institute of Certified Public Accountants and the requirements of chapter 36-20B and rules promulgated pursuant to that chapter.

Source: SL 1992, ch 357, § 9; SL 2007, ch 294, § 2.

58-43-9.1. Disqualification of accountant.

No person or firm may be recognized as a qualified independent certified public accountant if the person or firm:

(1)    Is not in conformity with the Code of Professional Ethics of the American Institute of CPA's and in all states in which the accountant is licensed to practice, or, for a Canadian or British company, that is not a chartered accountant; or

(2)    Has either directly or indirectly entered into an agreement of indemnity or release from liability with respect to the audit of the insurer.

Source: SL 2007, ch 294, § 3.

58-43-9.2. Disqualification of accountant for services provided contemporaneously with audit.

The director may not recognize as a qualified independent certified public accountant, nor accept an annual audited financial report, prepared in whole or in part by an accountant who provides to an insurer, contemporaneously with the audit, the following nonaudit services:

(1)    Bookkeeping or other services related to the accounting records or financial statements of the insurer;

(2)    Financial information systems design and implementation;

(3)    Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

(4)    Actuarially-oriented advisory services involving the determination of amounts recorded in the financial statements. The accountant may assist an insurer in understanding the methods, assumptions, and inputs used in the determination of amounts recorded in the financial statement only if it is reasonable to conclude that the services provided will not be subject to audit procedures during an audit of the insurer's financial statements. An accountant's actuary may also issue an actuarial opinion or certification on an insurer's reserves if the following conditions have been met:

(a)    Neither the accountant nor the accountant's actuary has performed any management functions or made any management decisions;

(b)    The insurer has competent personnel or engages a third party actuary to estimate the reserves for which management takes responsibility; and

(c)    The accountant's actuary tests the reasonableness of the reserves after the insurer's management has determined the amount of the reserves;

(5)    Internal audit outsourcing services;

(6)    Management functions or human resources;

(7)    Broker or dealer, investment adviser, or investment banking services;

(8)    Legal services or expert services unrelated to the audit; or

(9)    Any other services that the director determines, by rules promulgated pursuant to chapter 1-26, are impermissible.

Source: SL 2009, ch 271, § 8.

58-43-9.3. Exemption from disqualification provisions of § 58-43-9.2.

Any insurer having direct written and assumed premiums of less than one hundred million dollars in any calendar year may request an exemption from the provisions of § 58-43-9.2. The insurer shall file with the director a written statement discussing the reasons why the insurer should be exempt from these provisions. If the director finds, upon review of this statement, that compliance with these provisions would constitute a financial or organizational hardship upon the insurer, an exemption may be granted.

Source: SL 2009, ch 271, § 9.

58-43-9.4. Services which do not disqualify accountant--Audit committee preapproval.

A qualified independent certified public accountant who performs the audit may engage in other nonaudit services, including tax services, that are not described in or that do not conflict with the provisions of § 58-43-9.2, only if the activity is approved in advance by the audit committee, in accordance with the provisions of § 58-43-9.5.

Source: SL 2009, ch 271, § 10.

58-43-9.5. Preapproval of auditing and nonaudit services by audit committee--SOX compliant entities.

Any auditing services or nonaudit services provided to an insurer by the qualified independent certified public accountant of the insurer shall be preapproved by the audit committee. This preapproval requirement is waived with respect to nonaudit services if the insurer is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity or:

(1)    The aggregate amount of all such nonaudit services provided to the insurer constitutes not more than five percent of the total amount of fees paid by the insurer to its qualified independent certified public accountant during the fiscal year in which the nonaudit services are provided;

(2)    The services were not recognized by the insurer at the time of the engagement to be nonaudit services; and

(3)    The services are promptly brought to the attention of the audit committee and approved prior to the completion of the audit by the audit committee or by one or more members of the audit committee who are the members of the board of directors to whom authority to grant such approvals has been delegated by the audit committee.

Source: SL 2009, ch 271, § 11.

58-43-9.6. Delegation of preapproval duties.

The audit committee may delegate to one or more designated members of the audit committee the authority to grant the preapprovals required by the provisions of § 58-43-9.5. The decisions of any member to whom this authority is delegated shall be presented to the full audit committee at each of its scheduled meetings.

Source: SL 2009, ch 271, § 12.

58-43-9.7. Disqualification of accountant due to previous employment of partner or senior manager of insurer--Relief from requirement.

The director may not recognize an independent certified public accountant as qualified for a particular insurer if a member of the board, president, chief executive officer, controller, chief financial officer, chief accounting officer, or any person serving in an equivalent position for that insurer, was employed by the independent certified public accountant and participated in the audit of that insurer during the one-year period preceding the date that the most current statutory opinion is due. This section shall only apply to partners and senior managers involved in the audit.

An insurer may make application to the director for relief from this requirement on the basis of unusual circumstances. The insurer shall file, with the insurer's annual statement filing, the approval for relief with the states that it is licensed in, with the states that it is doing business in, and with the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the National Association of Insurance Commissioners, the insurer shall file the approval in an electronic format acceptable to the National Association of Insurance Commissioners.

Source: SL 2009, ch 271, § 13.

58-43-10. Rotation of accountant--Application for relief from rotation requirement.

The lead or coordinating audit partner, having primary responsibility for the audit pursuant to this chapter, may not act in that capacity for more than five consecutive years. The person shall be disqualified from acting in that or a similar capacity for the same company or its insurance subsidiaries or affiliates for a period of five consecutive years. An insurer may make application to the director for relief from the above rotation requirements for good cause. This application shall be made at least thirty days before the end of the calendar year. The director may consider the following factors in determining if the relief should be granted:

(1)    Number of partners, expertise of the partners or the number of insurance clients in the currently registered firm;

(2)    Premium volume of the insurer; or

(3)    Number of jurisdictions in which the insurer transacts business.

The insurer shall file, with the insurer's annual statement filing, the approval for relief with the states that the insurer is licensed in, with the states that the insurer is doing business in, and with the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the National Association of Insurance Commissioners, the insurer shall file the approval in an electronic format acceptable to the National Association of Insurance Commissioners.

Source: SL 1992, ch 357, § 10; SL 2009, ch 271, § 7.

58-43-11. Rejection of accountant or audited financial report--Grounds.

The director may not recognize as an accountant, nor accept any annual audited financial report, prepared in whole or in part by, any natural person who:

(1)    Has been convicted of fraud, bribery, a violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. §§ 1961-1968, or any dishonest conduct or practices under federal or state law;

(2)    Has been found to have violated the insurance laws of this state with respect to any previous reports submitted under this chapter; or

(3)    Has demonstrated a pattern or practice of failing to detect or disclose material information in previous reports filed under the provisions of this chapter.

Source: SL 1992, ch 357, § 11.

58-43-12. Disqualification hearing.

An accountant which has been disqualified or any firm which has had an accountant disqualified by the director may request a hearing on the disqualification. The director may, as a result of the hearing, require the insurer to replace the accountant with another qualified accountant.

Source: SL 1992, ch 357, § 12.

58-43-13. Application to file consolidated or combined financial statements--Worksheet--Contents.

An insurer may make written application to the director for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's reserves and the insurer cedes all of its direct and assumed business to the pool. In such cases, a columnar consolidating or combining worksheet shall be filed with the report as follows:

(1)    Amounts shown on the consolidated or combined audited financial report shall be shown on the worksheet;

(2)    Amounts for each insurer subject to this section shall be stated separately;

(3)    Noninsurance operations may be shown on the worksheet on a combined or individual basis;

(4)    Explanations of consolidating and eliminating entries shall be included; and

(5)    A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the worksheet and comparable amounts shown on the annual statements of the insurers.

Source: SL 1992, ch 357, § 13.

58-43-14. Report of material misstatement of financial condition or that capital and surplus requirements not met--Time limit--Liability of accountant.

An insurer shall require the accountant to report, in writing, within five business days to the board of directors or its audit committee any determination by the accountant that the insurer has materially misstated its financial condition as reported to the director as of the balance sheet date currently under examination or that the insurer does not meet the minimum capital and surplus requirement of §§ 58-5-21 and 58-6-23 as of that date. An insurer who has received a report pursuant to this section shall forward a copy of the report to the director within five business days of receipt of the report and shall provide the accountant making the report with evidence of the report being furnished to the director. If the accountant fails to receive the evidence within the required five business-day period, the accountant shall send or deliver to the director a copy of its report within the next five business days.

No accountant is liable in any manner to any person for any statement made in connection with this section if the statement is made in good faith.

Source: SL 1992, ch 357, § 14.

58-43-15. Accountant's action upon awareness of new facts subsequent to filing audited report.

If the accountant, subsequent to the date of the audited financial report filed pursuant to this chapter becomes aware of facts which might affect his report, the accountant shall take the action prescribed in volume 1, section AU 561 of the professional standards of the American Institute of Certified Public Accountants.

Source: SL 1992, ch 357, § 15.

58-43-16. Written communication as to unremediated material weaknesses in internal controls over financial reporting.

In addition to the annual audited financial report, each insurer shall furnish the director with a written communication as to any unremediated material weaknesses in the insurer's internal controls over financial reporting noted during the audit. The communication shall be prepared by the accountant within sixty days after the filing of the annual audited financial report. The communication shall contain a description of any unremediated material weakness as of December thirty-first for the immediately preceding year in the insurer's internal control over financial reporting noted by the accountant during the course of the accountant's audit of the financial statements. If no unremediated material weaknesses were noted, the communication shall so state.

The insurer shall provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant's communication.

The insurer shall maintain information about significant deficiencies communicated by the independent certified public accountant. The information shall be made available to the examiner conducting a financial condition examination for review and kept confidential pursuant to § 58-3-22.

Source: SL 1992, ch 357, § 16; SL 2009, ch 271, § 15.

58-43-16.1. Applicability of §§ 58-43-16.2 to 58-43-16.9.

The provisions of §§ 58-43-16.2 to 58-43-16.9, inclusive, do not apply to any foreign or alien insurer licensed in this state or any insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity.

Source: SL 2009, ch 271, § 16.

58-43-16.2. Responsibilities of audit committee.

The audit committee shall be directly responsible for the appointment, compensation, and oversight of the work of any accountant, including resolution of disagreements between management and the accountant regarding financial reporting, for the purpose of preparing or issuing the audited financial report or related work pursuant to this chapter. Each accountant shall report directly to the audit committee.

The audit committee of an insurer or a group of insurers shall be responsible for overseeing the insurer's internal audit function and granting each person performing the function suitable authority and resources to complete the audit committee's responsibilities required by §§ 58-43-16.25 to 58-43-16.28, inclusive.

Source: SL 2009, ch 271, § 17, eff. Jan. 1, 2010; SL 2018, ch 283, § 2.

58-43-16.3. Membership of audit committee.

Each member of the audit committee shall be a member of the board of directors of the insurer or a member of the board of directors of an entity elected pursuant to § 58-43-16.6.

Source: SL 2009, ch 271, § 18, eff. Jan. 1, 2010.

58-43-16.4. Independence of audit committee members.

A member of the audit committee may not be considered independent, other than in the member's capacity as a member of the audit committee, the board of directors, or any other board committee, if the member accepts any consulting, advisory, or other compensatory fee from the entity or be an affiliated person of the entity or any subsidiary thereof. However, if a law requires board participation by otherwise nonindependent members, that law shall prevail, and the members may participate in the audit committee and be designated as independent for audit committee purposes unless the member is an officer or employee of the insurer or one of its affiliates.

Source: SL 2009, ch 271, § 19, eff. Jan. 1, 2010.

58-43-16.5. Nonindependence of audit committee member for reasons outside the member's control.

If a member of the audit committee ceases to be independent for reasons outside the member's reasonable control, that person, with notice by the responsible entity to the director, may remain an audit committee member of the responsible entity until the earlier of the next annual meeting of the responsible entity or one year from the occurrence of the event that caused the member to be no longer independent.

Source: SL 2009, ch 271, § 20, eff. Jan. 1, 2010.

58-43-16.6. Election of controlling person to designate audit committee.

To exercise the election of the controlling person to designate the audit committee for purposes of this chapter, the ultimate controlling person shall provide written notice to the directors of the affected insurer. Notification shall be made timely prior to the issuance of the statutory audit report and include a description of the basis for the election. The election can be changed through notice to the director by the insurer, which shall include a description of the basis for the change. The election shall remain in effect until rescinded.

If an audit committee is not designated by the insurer, the insurer's entire board of directors shall constitute the audit committee.

Source: SL 2009, ch 271, § 21, eff. Jan. 1, 2010.

58-43-16.7. Report of accountant to audit committee.

The audit committee shall require the accountant that performs for an insurer any audit required by this chapter to report in a timely manner to the audit committee in accordance with the requirements of AU-C 260, The Auditor's Communication with Those Charged with Governance, as of January 1, 2015, including:

(1)    All significant accounting policies and material permitted practices;

(2)    All material alternative treatments of financial information within statutory accounting principles that have been discussed with management officials of the insurer, ramifications of the use of the alternative disclosures and treatments, and the treatment preferred by the accountant; and

(3)    Other material written communications between the accountant and the management of the insurer, such as any management letter or schedule of unadjusted differences.

Source: SL 2009, ch 271, § 22, eff. Jan. 1, 2010; SL 2015, ch 260, § 12.

58-43-16.8. Report of accountant where insurer is member of holding company system.

If an insurer is a member of an insurance holding company system, any report required by § 58-43-16.7 may be provided to the audit committee on an aggregate basis for insurers in the holding company system only if any substantial differences among insurers in the system are identified to the audit committee.

Source: SL 2009, ch 271, § 23, eff. Jan. 1, 2010.

58-43-16.9. Criteria for proportion of audit committee members.

The proportion of independent audit committee members shall meet or exceed the following criteria:

Note A: The director has authority afforded by state law to require the entity's board to enact improvements to the independence of the audit committee membership if the insurer is in a risk based capital (RBC) action level event, meets one or more of the standards of an insurer deemed to be in hazardous financial condition, or otherwise exhibits qualities of a troubled insurer.

Note B: Any insurer with less than five hundred million in prior year direct written and assumed premiums is encouraged to structure an audit committee with at least a supermajority of independent audit committee members.

Note C: Prior calendar year direct written and assumed premiums shall be the combined total of direct premiums and assumed premiums from nonaffiliates for the reporting entities.

Source: SL 2009, ch 271, § 24, eff. Jan. 1, 2010.

58-43-16.10. Hardship waiver of requirements of §§ 58-43-16.2 to 58-43-16.9, inclusive.

An insurer with direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than five hundred million dollars may make application to the director for a waiver from the requirements of §§ 58-43-16.2 to 58-43-16.9, inclusive, based upon hardship. The insurer shall file, with the insurer's annual statement filing, the approval for relief from §§ 58-43-16.2 to 58-43-16.9, inclusive, with the states that the insurer is licensed in or doing business in and with the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the National Association of Insurance Commissioners, the insurer shall file the approval in an electronic format acceptable to the National Association of Insurance Commissioners.

Source: SL 2009, ch 271, § 25, eff. Jan. 1, 2010.

58-43-16.11. Materially false or misleading statements or omissions to accountant prohibited.

No director or officer of an insurer shall, directly or indirectly:

(1)    Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under this chapter; or

(2)    Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review, or communication required under this chapter.

Source: SL 2009, ch 271, § 26.

58-43-16.12. Coercion, manipulation, or fraudulent influence of accountant prohibited.

No officer or director of an insurer, or any other person acting under the direction thereof, shall directly or indirectly take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit pursuant to this chapter if that person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading.

These actions include:

(1)    To issue or reissue a report on an insurer's financial statements that is not warranted in the circumstances (due to material violations of statutory accounting principles prescribed by the director, generally accepted auditing standards, or other professional or regulatory standards);

(2)    To fail to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards;

(3)    To fail to withdraw an issued report; or

(4)    To fail to communicate matters to an insurer's audit committee.

Source: SL 2009, ch 271, § 27.

58-43-16.13. Management's Report of Internal Control over Financial Reporting required of certain insurers.

Each insurer required to file an audited financial report pursuant to this chapter that has annual direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of five hundred million dollars or more shall prepare a report of the insurer's or group of insurers' internal control over financial reporting. The report shall be filed with the director along with the communication of internal control related matters noted in an audit described in § 58-43-16. The Management's Report of Internal Control over Financial Reporting shall be as of December thirty-first for the immediately preceding year.

Source: SL 2009, ch 271, § 28.