Tex. Ins. Code Section 401.009
Contents of Audited Financial Report

state.tx.us/GetStatute.aspx?Code=IN&Value=401.009">401.009. CONTENTS OF AUDITED FINANCIAL REPORT. (a) An audited financial report required under Section 401.004 (Filing and Extensions for Filing of Audited Financial Report) must:

(1)

describe the financial condition of the insurer or health maintenance organization as of the end of the most recent calendar year and the results of the insurer’s or health maintenance organization’s operations, changes in financial position, and changes in capital and surplus for that year;

(2)

conform to the statutory accounting practices prescribed or otherwise permitted by the insurance regulator in the insurer’s or health maintenance organization’s state of domicile; and

(3)

include:

(A)

the report of an accountant;

(B)

a balance sheet that reports admitted assets, liabilities, capital, and surplus;

(C)

a statement of gain or loss from operations;

(D)

a statement of cash flows;

(E)

a statement of changes in capital and surplus;

(F)

any notes to financial statements;

(G)

supplementary data and information, including any additional data or information required by the commissioner; and

(H)

information required by the department to conduct the insurer’s or health maintenance organization’s examination under Subchapter B.

(b)

The notes to financial statements required by Subsection (a)(3)(F) must include:

(1)

a reconciliation of any differences between the audited statutory financial statements and the annual statements filed under this code, with a written description of the nature of those differences;

(2)

any notes required by the appropriate National Association of Insurance Commissioners annual statement instructions or by generally accepted accounting principles; and

(3)

a summary of the ownership of the insurer or health maintenance organization and that entity’s relationship to any affiliated company.

(c)

An insurer or health maintenance organization required under Section 401.004 (Filing and Extensions for Filing of Audited Financial Report) to file an audited financial report that does not retain an independent certified public accountant to perform an annual audit for the previous year may not be required to include in the report audited statements of operations, cash flows, or changes in capital and surplus for the first year. The insurer or health maintenance organization must include those statements in the first-year report and label the statements as unaudited. The insurer or health maintenance organization must include in the first-year report all other reports described by Section 401.004 (Filing and Extensions for Filing of Audited Financial Report).

(d)

The commissioner shall adopt rules governing the information to be included in the audited financial report under Subsection (a)(3)(H).
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.

Source: Section 401.009 — Contents of Audited Financial Report, https://statutes.­capitol.­texas.­gov/Docs/IN/htm/IN.­401.­htm#401.­009 (accessed Jun. 5, 2024).

401.001
Definitions 401.002
Purpose of Subchapter 401.003
Effect of Subchapter on Authority to Examine 401.004
Filing and Extensions for Filing of Audited Financial Report 401.005
Alternative Filing for Canadian or British Insurers or Health Maintenance Organizations 401.006
Exemption for Certain Small Insurers and Health Maintenance Organizations 401.007
Exemption for Certain Foreign or Alien Insurers or Health Maintenance Organizations 401.008
Hardship Exemption 401.009
Contents of Audited Financial Report 401.010
Requirements for Financial Statements in Audited Financial Report 401.011
Qualifications of Accountant 401.012
Hearing on Accountant Qualifications 401.013
Accountant’s Letter of Qualifications 401.014
Registration of Accountant 401.015
Resignation or Dismissal of Accountant 401.016
Audited Combined or Consolidated Financial Statements 401.017
Notice of Adverse Financial Condition or Misstatement of Financial Condition 401.018
Information Discovered After Date of Audited Financial Report 401.019
Report on Significant Deficiencies in Internal Control 401.020
Accountant Work Papers 401.021
Penalty for Failure to Comply 401.051
Duty to Examine Carriers 401.052
Frequency of Examination 401.053
Examination Period 401.054
Powers Related to Examination 401.055
Effect of Subchapter on Authority to Use Information 401.056
Rules Related to Reports and Hearings 401.057
Use of Audit and Work Papers 401.058
Confidentiality of Reports and Related Information 401.059
Determination of Value 401.060
Right to Information Relating to Determination of Value or Market Value 401.061
Disciplinary Action for Failure to Comply with Subchapter 401.062
Stay of Rule, Order, Decision, or Finding 401.101
Use of Department Examiner or Other Qualified Person or Firm 401.102
Legislative Intent as to Appointment or Employment of Examiners and Actuaries 401.103
Appointment of Examiners and Actuaries 401.104
Appointment of Examiners, Actuaries, and Other Persons for Certain Examinations 401.105
Oath of Examiners and Assistants 401.106
Right of Action on Bond 401.107
Registration of Contract Examiners 401.151
Expenses of Examination of Domestic Insurer 401.152
Expenses of Examination of Other Insurers 401.153
Reimbursement of Expenses of Certain Persons or Firms 401.154
Tax Credit Authorized 401.155
Additional Assessments 401.156
Deposit and Use of Assessment and Fee 401.201
Confidentiality of Early Warning System Information 401.251
Definitions 401.252
Self-directed Budget 401.253
Audits 401.254
Records 401.255
Membership in Employees Retirement System
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 401.009’s source at texas​.gov