§431:3-302.5  Annual audit.  (a) Annually on or before June 1, or such later date as the commissioner uponrequest or for cause may specify, each domestic insurer shall file an audit bya designated independent certified public accountant or accounting firm of thefinancial statements reporting the financial condition and the results ofoperations of the insurer.  The insurer shall notify the commissioner inwriting of the name and address of the person or firm retained to conduct theannual audit within sixty days of retention.  The commissioner may disapprovethe insurer's designation within fifteen days of receipt of the insurer'snotice, and the insurer shall be required to designate another independentcertified public accountant or accounting firm.

(b)  An insurer may make written application tothe commissioner for approval to file audited consolidated or combinedfinancial statements in lieu of separate annual audited financial statements ifthe insurer is part of a group of insurance companies that utilizes a poolingor one hundred per cent reinsurance agreement that affects the solvency andintegrity of the insurer's reserves and the insurer cedes all of its direct andassumed business to the pool.

(c)  The audit required in subsection (a) andthe audited consolidated or combined financial statements as may be approvedunder subsection (b) shall be prepared in accordance with the NationalAssociation of Insurance Commissioners accounting practices and proceduresmanual and rules adopted by the commissioner following the practices andprocedures prescribed by the National Association of Insurance Commissioners.

(d)  Any insurer failing or refusing to submitthe annual audit or any of the documents required under subsection (a) or asmay be approved under subsection (b), on or before June 1, or a later date asthe commissioner upon request or for cause may specify, shall be liable for apenalty in an amount not less than $100 and not more than $500 for each day ofdelinquency.  The commissioner may suspend or revoke the certificate ofauthority of any insurer who fails to file any of the documents required insubsection (a). [L 1991, c 103, §1; am L 1994, c 128, §3; am L 1997, c 368, §3;am L 2004, c 122, §12; am L 2009, c 77, §3]