Sec. 38a-1010. Annual statement of financial condition required. Untrue statement prohibited.
Sec. 38a-1010. Annual statement of financial condition required. Untrue
statement prohibited. (a) Each group shall submit to the commissioner a statement of
financial condition audited by an independent certified public accountant on or before
the last day of the sixth month following the end of the group's fiscal year. The financial
statement shall be in a form prescribed by the commissioner and shall include, but not
be limited to, actuarially appropriate reserves for: (1) Known claims and any associated
expenses; (2) claims incurred but not reported and any associated expenses; (3) unearned
premiums; and (4) bad debts, which shall be shown as liabilities.
(b) An actuarial opinion regarding reserves for: (1) Known claims and any associated
expenses; and (2) claims incurred but not reported and any associated expenses shall
be included in the audited financial statement. The actuarial opinion shall be prepared
(i) by an independent person with a designation of Fellow of the Casualty Actuarial
Society (FCAS), (ii) by a member of the American Academy of Actuaries (MAAA)
with experience in preparing such opinions, or (iii) by any other qualified loss reserve
specialist in accordance with the provisions of section 38a-14.
(c) No person shall make any untrue statement of a material fact, or omit to state a
material fact necessary in order to make the statement made, in light of the circumstances
under which it is made, not misleading, in connection with the solicitation of membership
in a group.
(d) The commissioner may prescribe the format and frequency of other reports
which may include, but shall not be limited to, payroll audit reports, summary loss
reports and quarterly financial statements and make any regulations necessary to carry
out the provisions of subsection (e) of section 31-288 and sections 31-289b, 31-316,
31-345 and 38a-1000 to 38a-1023, inclusive.
(P.A. 96-267, S. 11.)