2012 New York Consolidated Laws
ISC - Insurance
Article 3 - (301 - 341) ADMINISTRATIVE AND PROCEDURAL PROVISIONS
307 - Annual statements; audited financial statements.

 
    §  307. Annual statements; audited financial statements. (a) (1) Every
  insurer and every fraternal benefit society which is authorized to do an
  insurance business in this state, and  every  pension  fund,  retirement
  system  or  state  fund  which is required, by any law of this state, to
  report to the superintendent or is subject  to  his  examination,  shall
  file  in  the  office  of  the superintendent, annually on or before the
  first day of March, a statement, to be known as  its  annual  statement,
  executed  in  duplicate,  verified  by  the  oath of at least two of its
  principal officers, showing its condition at last year-end  or,  in  the
  case  of  a  pension fund or retirement system, on such date in the year
  next preceding as the superintendent may approve. Such  statement  shall
  be  in  such  form  and shall contain such matters as the superintendent
  shall prescribe.
    (2) The superintendent shall from time to time prescribe the  form  of
  such annual statement, which may be a printed document and/or electronic
  media,  and  which  may  be  varied  as  to different types of insurers,
  corporations, societies, pension funds and retirement systems, as  shall
  seem  to  him  best adapted to elicit a true exhibit of the condition of
  each such entity, in respect to every matter which he may deem material.
  For every annual statement form which differs from or is in addition  to
  those adopted from time to time by the national association of insurance
  commissioners,  the  superintendent  shall  cause  to  be  prepared  and
  furnished to every insurer, pension fund or retirement  system  required
  by  law  to report to him, printed forms of the statements and schedules
  required by him.
    (3) The annual statement of an alien insurer may be  verified  by  the
  oath  of  the  manager  or  assistant  manager thereof within the United
  States, or by any other official of such insurer  authorized  by  it  to
  sign  and  verify  its annual statements, if such authorization shall be
  proved by filing  with  the  superintendent  such  evidence  as  he  may
  require. The annual statement of an alien insurer, excepting a fraternal
  benefit  society,  shall  be  a  separate  statement, to be known as its
  general form of statement, of the business done within the United States
  and of the assets held by or for it within the  United  States  for  the
  protection  of  policyholders and creditors within the United States and
  of the liabilities incurred against such assets, and shall  not  contain
  any  statement  in  regard to its assets and business elsewhere. But the
  superintendent  may  require  any  such  alien  insurer  to  give   such
  additional information as to its total business or assets or any portion
  thereof as he may determine.
    (4)  Every  insurer  and  every  fraternal  benefit  society  which is
  authorized to do an insurance business in this state, and every  pension
  fund,  retirement  system  or state fund which is required by any law of
  this state to report to the superintendent,  which  willfully  fails  to
  file an annual statement as required in this section, or willfully fails
  to  reply  within thirty days to a written inquiry by the superintendent
  in connection therewith, shall, in addition to other penalties  provided
  by  this  chapter,  be  subject,  upon  due notice and opportunity to be
  heard, to a penalty of up to two hundred fifty dollars per day of delay,
  not to exceed twenty-five thousand dollars in the  aggregate,  for  each
  such failure.
    (b)  (1)  Every  licensed  insurer,  except an assessment co-operative
  property/casualty insurance company having direct  premiums  written  in
  this  state  of  less  than  two  hundred  fifty thousand dollars in any
  calendar year and having less than five hundred policyholders at the end
  of such calendar year, shall be required to file within five  months  of
  the  end of such calendar year, an annual financial statement (including
  an annual financial statement of any subsidiary of the type described in

  paragraph nine of subsection (a) of section one  thousand  four  hundred
  four  or subparagraph (B) of paragraph four of subsection (a) of section
  one thousand four hundred  seven  of  this  chapter)  together  with  an
  opinion  thereon  of  an  independent certified public accountant on the
  financial statement of such  insurer  and  any  such  subsidiary,  which
  statement  and  opinion  shall be available for public inspection at the
  office of the superintendent and the principal office  of  the  insurer.
  Each such insurer shall furnish the superintendent with an evaluation by
  such  accountant  of  the  accounting  procedures  and  internal control
  systems of the insurer that are  necessary  to  the  furnishing  of  the
  opinion.  Each  such  insurer  shall  require  the  accountant  to  make
  available for review by the  superintendent  the  work  papers  and  any
  communications  between  the  accountant and the insurer relating to the
  examination of the insurer. Any such work papers and communications made
  available to the superintendent shall be kept confidential, shall not be
  subject to subpoena and shall not be made public  unless,  after  notice
  and  opportunity  to  be  heard,  the superintendent determines that the
  interests of policyholders, stockholders or the public will be served by
  the publication thereof. Each such insurer shall require the  accountant
  to  notify  the superintendent if the accountant has determined that the
  insurer has materially misstated its financial condition as reported  to
  the  superintendent or that the insurer does not meet minimum capital or
  surplus to policyholder requirements.
    (2) If the insurer is part of a group  of  insurance  companies  which
  utilizes   a  pooling  agreement  or  one  hundred  percent  reinsurance
  agreement that affects the solvency  and  integrity  of  such  insurer's
  reserves  and  such insurer cedes all of its direct and assumed business
  to the pool, then such insurer may file audited consolidated or combined
  financial statements  in  lieu  of  separate  annual  audited  financial
  statements  provided  that a consolidating or combining exhibit be filed
  that clearly reconciles amounts in the audited  financial  statement  to
  the  individual  company  annual statements. In addition, an insurer may
  comply by  filing  statements  prepared  in  accordance  with  generally
  accepted accounting principles, provided that appropriate reconciliation
  is  made  of  the differences between net income and capital and surplus
  reported on that  basis  and  that  reported  in  the  annual  statutory
  statement filed with the superintendent.
    (3) In lieu of the requirements of this subsection, the superintendent
  may accept copies of filings of audited financial statements required by
  another  state  where  they are found to be substantially similar to the
  requirements herein. Upon written application of any insurer, extensions
  of the filing date and exemptions from the filing  requirements  may  be
  granted  by the superintendent, if the superintendent finds, upon review
  of the application, that compliance  would  constitute  a  financial  or
  organizational hardship upon the insurer.