287.920. Audit required, when, procedure--report, contents, governor and general assembly to receive--administrator to formulate budget--department, duties--subscribers to be provided policy, when.
Audit required, when, procedure--report, contents, governor andgeneral assembly to receive--administrator to formulatebudget--department, duties--subscribers to be provided policy,when.
287.920. 1. The board shall cause an annual audit of the books ofaccounts, funds and securities of the company to be made by a competent andindependent firm of certified public accountants, the cost of the audit to becharged against the company. A copy of the audit report shall be filed withthe director of the department of insurance, financial institutions andprofessional registration and the administrator. The audit shall be open tothe public for inspection.
2. The board shall submit an annual independently audited report inaccordance with procedures governing annual reports adopted by the NationalAssociation of Insurance Commissioners by March first of each year and thereport shall be delivered to the governor and the general assembly and shallindicate the business done by the company during the previous year and containa statement of the resources and liabilities of the company.
3. The administrator shall annually submit to the board for its approvalan estimated budget of the entire expense of administering the company for thesucceeding calendar year having due regard to the business interests andcontract obligations of the company.
4. The incurred loss experience and expense of the company shall beascertained each year to include but not be limited to estimates ofoutstanding liabilities for claims reported to the company but not yet paidand liabilities for claims arising from injuries which have occurred but havenot yet been reported to the company. If there is an excess of assets overliabilities, necessary reserves and a reasonable surplus for the catastrophehazard, then a cash dividend may be declared or a credit allowed to anemployer who has been insured with the company in accordance with criteriaapproved by the board, which may account for the employer's safety record andperformance.
5. The department of insurance, financial institutions and professionalregistration shall conduct an examination of the company in the manner andunder the conditions provided by the statutes of the insurance code for theexamination of insurance carriers. The board shall pay the cost of theexamination as an expense of the company. The company is subject to allprovisions of the statutes which relate to private insurance carriers and tothe jurisdiction of the department of insurance, financial institutions andprofessional registration in the same manner as private insurance carriers,except as provided by the director.
6. For the purpose of ascertaining the correctness of the amount ofpayroll reported, the number of employees on the employer's payroll and forsuch other information as the administrator may require in the properadministration of the company, the records and payrolls of each employerinsured by the company shall always be open to inspection by the administratoror his duly authorized agent or representative.
7. Every employer provided insurance coverage by the company, uponcomplying with the underwriting standards adopted by the company, and uponcompleting the application form prescribed by the company, shall be furnishedwith a policy showing the date on which the insurance becomes effective.
(L. 1993 S.B. 251 § 11)