1. A. On or before 90 days following the end of a group's fiscal year, each group shall submit to the Commissioner a fiscal year-end audited financial report, prepared by an independent certified public accountant, in conformity with generally accepted accounting principles, which shall be on a form prescribed by the Commissioner which shall include, but not be limited to:

   1. (1) Actuarially appropriate reserves for:

      1. (a) Known claims and expenses associated with them;
      2. (b) Claims incurred but not reported and expenses associated with them;
      3. (c) Unearned premiums; and
      4. (d) Bad debts, for which reserves shall be shown as liabilities;

   2. (2) An actuarial opinion in compliance with the current edition of the Financial Analysis Handbook published by the National Association of Insurance Commissioners and given by a member of the American Academy of Actuaries or a person who has otherwise demonstrated his or her actuarial competence to the satisfaction of the Commissioner, regarding reserves for:

      1. (a) Known claims and expenses associated with them; and
      2. (b) Claims incurred but not reported and expenses associated with them.
2. B. A copy of a group’s excess insurance policy for the current calendar year shall be submitted with the fiscal year-end audited financial report required by §A of this regulation.
3. C. On or before 90 days following the end of a group's fiscal year, each group shall submit to the Commissioner a report, in a format acceptable to the Commissioner, regarding the financial condition of each member based on the member’s most recent fiscal year-end data, containing the information described in COMAR 31.08.09.08C(15). The report shall be signed by an executive officer of the group.

Authority: Insurance Article, §§2-108, 2-109, 9-102, Title 25, Subtitle 3, and 27-501, Annotated Code of Maryland

Effective date: December 26, 1988 (15:26 Md. R. 2982)

Chapter recodified from COMAR 09.30.73 to COMAR 31.08.09 effective September 7, 1998 (25:18 Md. R. 1439)

Regulation .04 amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76)

Regulation .05A, B amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76)

Regulation .06A amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76)

Chapter revised effective June 30, 2008 (35:13 Md. R. 1182)

Regulation .06A amended effective January 1, 2018 (44:4 Md. R. 256)

Regulation .07 amended effective January 1, 2018 (44:4 Md. R. 256)

Regulation .08 amended effective January 1, 2018 (44:4 Md. R. 256)

Regulation .13 amended effective January 1, 2018 (44:4 Md. R. 256)

Regulation .14A amended effective January 1, 2018 (44:4 Md. R. 256)

Regulation .14D adopted effective January 1, 2018 (44:4 Md. R. 256)