§ 58-10-200. Contents of annual audited financial report.
§ 58‑10‑200. Contents of annual audited financial report.
(a) The annual auditedfinancial report shall report the financial position of the insurer as of theend of the most recent calendar year and the results of its operations, cashflows, and changes in capital and surplus for the year then ended in conformitywith G.S. 58‑2‑165(c). The financial statements included in theaudited financial report shall be prepared in a form and using language andgroupings substantially the same as the relevant sections of the annualstatement of the insurer filed with the Commissioner, and the financialstatement shall be comparative, presenting the amounts as of December 31 of thecurrent year and the amounts as of the immediately preceding December 31.However, in the first year in which an insurer is required to file an auditedfinancial report, the comparative data may be omitted.
(b) The annual auditedfinancial report shall include the following:
(1) Report ofindependent certified public accountant.
(2) Balance sheetreporting admitted assets, liabilities, capital, and surplus.
(3) Statement ofoperations.
(4) Statement of cashflows.
(5) Statement of changesin capital and surplus.
(6) Notes to financialstatements, which shall be those required by the appropriate NAIC AnnualStatement Instructions and the NAIC Accounting Practices and Procedures Manual.The notes shall include a reconciliation of differences, if any, between theaudited statutory financial statements and the annual statement filed pursuantto G.S. 58‑2‑165(c) with a written description of the nature ofthese differences. (2009‑384,s. 1.)