Montana Administrative Code

6.6.3205 DATA REPORTING REQUIREMENTS (IS HEREBY REPEALED) Authorizing statute(s): Sec. 33-1-313, MCA Implementing statute(s): Sec. 33-16-231 through 33-16-236, MCA History: NEW, 1991 MAR p. 253, Eff. 3/1/91; REP, 1996 MAR p. 267, Eff. 1/26/96.

6.6.3206 FILING REQUIREMENTS (IS HEREBY REPEALED) Authorizing statute(s): Sec. 33-1-313, MCA Implementing statute(s): Sec. 33-16-231 through 33-16-236, MCA History: NEW, 1991 MAR p. 253, Eff. 3/1/91; REP, 1996 MAR p. 267, Eff. 1/26/96.

6.6.3301 PURPOSE AND APPLICATION The purpose of these rules is to prevent unfair discrimination in personal automobile insurance based solely on an applicant's lack of prior insurance at the time of application for insurance with any insurer. These rules prohibit unfair discrimin…

6.6.3302 DEFINITIONS "Prior insurance" means an automobile insurance policy in force with any insurer, or an authorized self-insurance plan in effect, at the time of or at any time within the three-year period prior to application for coverage with any insurer. "Insurer" means an…

6.6.3303 DISCRIMINATION IN DETERMINING ELIGIBILITY FOR INSURANCE PROHIBITED Except as provided in (1) (a) , (1) (b) , and (3) below, an insurer shall not reject an applicant for insurance solely on the basis that the applicant cannot or does not demonstrate the existence of prior…

6.6.3304 DISCRIMINATION IN PRICING PROHIBITED Except as provided in paragraphs (2) and (3) below, once program eligibility has been established, the existence or non-existence of prior insurance for a policyholder shall not be considered in determining the premium for a policy. T…

6.6.3401 STANDARDS FOR EVALUATING FINANCIAL CONDITION OF REGULATED COMPANIES The following standards, either singly or a combination of two or more, may be considered by the commissioner to determine whether the continued operation of any insurer transacting an insurance business…

6.6.3402 SCOPE OF COMMISSIONER'S DISCRETION For the purposes of making a determination of an insurer's financial condition under this subchapter, the commissioner may: disregard any credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impai…

6.6.3403 POSSIBLE ADMINISTRATIVE SANCTIONS AGAINST COMPANIES IN HAZARDOUS CONDITION If the commissioner determines that the continued operation of the insurer licensed to transact business in this state may be hazardous to its policyholders, creditors, or the general public, then…

6.6.3404 ADMINISTRATIVE REMEDIES AVAILABLE TO INSURERS Any health service corporation subject to an order under ARM 6.6.3403 may request a hearing pursuant to 33-1-701, MCA. Any other insurer, including a captive insurance company and a captive risk retention group, subject to an…

6.6.3405 JUDICIAL REVIEW Any order or decision of the commissioner shall be subject to judicial review in accordance with 33-1-711, 33-2-1323, MCA, and Montana Administrative Procedure Act by any party to the proceedings whose interests are substantially affected. Authorizing sta…

6.6.3501 DEFINITIONS For the purposes of this subchapter, the following terms shall have the following meanings: "Accountant" and "independent certified public accountant" mean an independent certified public accountant or accounting firm in good standing with the American Instit…

6.6.3502 PURPOSE AND SCOPE The purpose of this rule is to improve the surveillance of the financial condition of insurers by the department of insurance an annual audit of financial statements reporting the financial position, and the results of operations of insurers by independ…

6.6.3503 GENERAL REQUIREMENTS RELATED TO FILING AND EXTENSIONS FOR FILING OF ANNUAL AUDITED FINANCIAL REPORTS AND AUDIT COMMITTEE APPOINTMENT All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the …

6.6.3504 CONTENTS OF ANNUAL AUDITED FINANCIAL REPORT The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for the year…

6.6.3505 DESIGNATION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT Each insurer required by these rules to file an annual audited financial report must, within 60 days after becoming subject to such requirement, register with the commissioner in writing the name and address of the i…

6.6.3506 QUALIFICATIONS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT The commissioner shall not recognize any person or firm as a qualified independent certified public accountant if the person, or firm: is not in good standing with the AICPA and in all states in which the accounta…

6.6.3507 CONSOLIDATED OR COMBINED AUDITS An insurer may make written application to the commissioner for authority to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements, if the insurer is part of a group of insurance…

6.6.3508 SCOPE OF AUDIT AND REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT Financial statements furnished pursuant to ARM 6.6.3504 shall be examined by an independent certified public accountant. The audit of the insurer's financial statements shall be conducted in accordance …

6.6.3509 NOTIFICATION OF ADVERSE FINANCIAL CONDITION The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within five business days to the board of directors or its audit committee any…

6.6.3510 COMMUNICATION OF INTERNAL CONTROLS RELATED MATTERS NOTED IN AN AUDIT In addition to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weaknesses in its internal controls over fina…

6.6.3511 ACCOUNTANT'S LETTER OF QUALIFICATIONS The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating: that the accountant is independent with respect to the insurer and conforms to th…

6.6.3512 DEFINITION, AVAILABILITY, AND MAINTENANCE OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS' WORKPAPERS Workpapers are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions…

6.6.3515 REQUIREMENTS FOR AUDIT COMMITTEES This rule shall not apply to foreign or alien insurers licensed in this state, an insurer that is a SOX compliant entity, or an insurer that is a direct or indirect wholly-owned subsidiary of a SOX compliant entity. The audit committee s…

6.6.3516 CONDUCT OF INSURER IN CONNECTION WITH THE PREPARATION OF REQUIRED REPORTS AND DOCUMENTS No director or officer of an insurer shall, directly or indirectly: make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, …

6.6.3517 MANAGEMENT'S REPORT OF INTERNAL CONTROL OVER FINANCIAL REPORTING Every insurer required to file an audited financial report pursuant to this subchapter that has annual direct written and assumed premiums, excluding premiums reinsured with the Federal Crop Insurance Corpo…

6.6.3518 INTERNAL AUDIT FUNCTION REQUIREMENTS An insurer is exempt from the requirements of this rule if: the insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal C…

6.6.3520 EXEMPTIONS AND EFFECTIVE DATES Upon written application of any insurer, the commissioner may grant an exemption from compliance with any and all provisions of these rules if the commissioner finds, upon review of the application, that compliance would constitute a financ…

6.6.3521 CANADIAN AND BRITISH COMPANIES In the case of Canadian and British insurers, the annual audited financial report must be defined as the annual statement of total business on the form filed by such companies with their supervision authority, duly audited by an independent…

6.6.3601 SCOPE OF RULES These rules apply to all domestic life and accident and health insurers and to all other licensed life and accident and health insurers which are not subject to a substantially similar regulation in their domiciliary state. These rules also apply to licens…

6.6.3602 ACCOUNTING REQUIREMENTS No insurer subject to these rules may, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with the department if, by the terms of the reinsurance agreement, in substance or effect, any of the follow…

6.6.3603 WRITTEN AGREEMENT No reinsurance agreement or amendment to any agreement may be used to reduce any liability or to establish any asset in any financial statement filed with the department, unless the agreement, amendment or a binding letter of intent has been duly execut…

6.6.3604 EXISTING AGREEMENTS Insurers subject to these rules must reduce to zero by December 31, 1995, any reserve credits or assets established with respect to reinsurance agreements entered into prior to the effective date of these rules which, under the provisions of these rul…

6.6.3701 DEFINITIONS For the purposes of this subchapter, the following terms shall have the following meanings: "Executive officer" means chief executive officer, chief operating officer, chief financial officer, treasurer, secretary, controller, and any other individual perform…

6.6.3702 FORMS--GENERAL REQUIREMENTS Forms A, B, C, D, and F are intended to be guides in the preparation of the statements required by 33-2-1104, 33-2-1111, and 33-2-1113, MCA. They are not intended to be blank forms which are to be filled in. The statements filed must contain t…

6.6.3703 FORMS--INCORPORATION BY REFERENCE, SUMMARIES, AND OMISSIONS Information required by any item of Forms A, B, D, or F may be incorporated by reference in answer or partial answer to any other item. Information contained in any financial statement, annual report, proxy stat…

6.6.3704 FORMS--INFORMATION UNKNOWN OR UNAVAILABLE AND EXTENSION OF TIME TO FURNISH If it is impractical to furnish any required information, document, or report at the time it is required to be filed, a separate document may be filed with the commissioner: identifying the inform…

6.6.3705 FORMS--ADDITIONAL INFORMATION AND EXHIBITS In addition to the information required to be included in Forms A, B, C, D, and F, any additional material information necessary to make the information contained in the forms not misleading must be added. Additional exhibits no…

6.6.3706 FILING OF FORM A, REGARDING ACQUISITION OR CONTROL A person required to file a statement pursuant to 33-2-1104, MCA, shall furnish the required information on Form A, which is made a part of these rules. Authorizing statute(s): 33-1-313, 33-2-1517, MCA Implementing statu…

6.6.3707 AMENDMENTS TO FORM A The applicant shall promptly advise the commissioner of any changes in the information furnished on Form A arising subsequent to the date upon which the information was furnished, but prior to the commissioner's disposition of the application. Author…

6.6.3708 REPORTING ACQUISITION OF DOMESTIC INSURERS If the person being acquired is deemed to be a "domestic insurer" solely because of the provisions of 33-2-1104, MCA, the name of the domestic insurer on the cover page must be indicated as follows: "ABC Insurance Company, a sub…

6.6.3709 FILING OF FORM B--ANNUAL REGISTRATION OF INSURERS An insurer required to file an annual registration statement pursuant to 33-2-1111(2), MCA, shall furnish the required information on Form B, which is made a part of these rules. Authorizing statute(s): 33-1-313, 33-2-151…

6.6.3710 AMENDMENTS TO FORM B An amendment to Form B shall be filed within 15 days after the end of any month in which there is a material change to the information provided in the annual registration statement. Amendments must be filed in the Form B format with only those items …

6.6.3711 SUMMARY OF CHANGES TO REGISTRATION--STATEMENT FILING An insurer required to file an annual registration statement pursuant to 33-2-1111(2), MCA, is also required to furnish information required on Form C, which is made a part of these rules. Authorizing statute(s): 33-1-…

6.6.3712 ALTERNATIVE AND CONSOLIDATED REGISTRATIONS Any authorized insurer may file a registration statement on behalf of any affiliated insurer or insurers which are required to register under 33-2-1111, MCA. A registration statement may include information not required by 33-2-…