Authority: IC 27-1-3-7

Affected: IC 27-1-3.5

Sec. 1. (a) This rule applies to all insurers as defined in section 2 of this rule, except insurers having direct premiums written of less than:

1. (1) one million dollars ($1,000,000) in any calendar year; and
2. (2) one thousand (1,000) policyholders or certificate holders of direct written policies nationwide at the end of the calendar year;

shall be exempt from this rule for the year, unless the commissioner makes a specific finding that compliance is necessary for the commissioner to carry out statutory responsibilities. Insurers having assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars ($1,000,000) or more will not be so exempt.

(b) Foreign or alien insurers filing the audited financial report in another state, pursuant to that state's requirement for filing of audited financial reports, which has been found by the commissioner to be substantially similar to the requirements herein, are exempt from sections 3 through 12 of this rule if as follows:

1. (1) A copy of the following documents filed with the other state are filed with the commissioner in accordance with the filing dates specified in sections 3, 10, and 11 of this rule, respectively:

   1. (A) Audited financial report.
   2. (B) Communication of internal control related matters noted in an audit.
   3. (C) The accountant's letter of qualifications.
2. Canadian insurers may submit accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada.
3. (2) A copy of any notification of adverse financial condition report filed with the other state is filed with the commissioner within the time specified in section 9 of this rule.

(c) Foreign or alien insurers required to file management's report of internal control over financial reporting in another state are exempt from filing the report in this state if the:

1. (1) other state has substantially similar reporting requirements; and
2. (2) report is filed with the commissioner of the other state within the time specified.

(d) This rule shall not prohibit, preclude, or in any way limit the commissioner from:

1. (1) ordering;
2. (2) conducting; or
3. (3) performing;

examinations of insurers under the rules of the department and the practices and procedures of the department.

(Department of Insurance; 760 IAC 1-78-1; filed Oct 27, 2009, 2:52 p.m.: 20091125-IR-760090376FRA; readopted filed Nov 20, 2015, 9:25 a.m.: 20151216-IR-760150341RFA; readopted filed Nov 15, 2021, 8:32 a.m.: 20211215-IR-760210419RFA; readopted filed Oct 22, 2025, 3:17 p.m.: 20251119-IR-760240637RFA)