2013 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 that is authorized to do  an
  insurance  business  in  this  state, and every pension fund, retirement
  system or state fund that is required, by any  law  of  this  state,  to
  report  to  the  superintendent  or  is  subject to the superintendent's
  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.  The  superintendent  may  accept   an
  electronic  filing of a foreign insurer's annual statement that does not
  contain the signatures or verification of the officers provided that the
  foreign insurer has filed, in its state of domicile, an annual statement
  verified by the oath of at least two of its principal officers. In  such
  a situation, the officers of the foreign insurer shall be deemed to have
  given their oath in this state.
    (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.