Section R20-5-718. Financial Statements

A.      A pool shall ensure that a financial statement is prepared annu- ally at the end of its fiscal year by a certified public accountant who has experience in auditing insurance carriers or self- insured pools. The financial statement shall be accompanied by an actuarial report regarding reserves for claims and associ- ated expenses, and claims incurred, but not reported.

B.       A pool shall ensure that reported reserves in a financial state- ment are established based on 110% of an actuary’s best esti- mate.

C.      A pool shall ensure that an actuarial opinion is rendered by an actuary who is a member of the Academy of Actuaries (MAAA) or a fellow of the Casualty Actuarial Society (FCAS).

D.      A pool shall ensure that the pool’s annual financial statement described in subsection (A) is audited by a certified public accountant. The audit shall include:

1.        An evaluation and statement from the certified public accountant whether invested surplus money was invested in compliance with R20-5-724;

2.        A description of how the pool operates; and

3.        A statement whether the pool complied with statutes and rules governing self-insured workers’  compensation pools as it relates to financial matters.

E.       Upon request by the Commission or within 120 days after a pool’s fiscal year ends, a pool shall file its annual financial statement with the Commission. If a pool stops providing cov- erage on an ongoing basis or fails to file a renewal application for authorization to self-insure, then the pool shall provide its annual financial statement within 120 days after the pool’s fis- cal year ends.

Historical Note

Adopted effective September 9, 1998 (Supp. 98-3).