1. (1) Upon written application of any insurer, the commissioner may grant an exemption from compliance with any and all provisions of this rule if the commissioner finds, upon review of the application, that compliance with this rule would constitute a financial or organizational hardship upon the insurer.

   1. (a) An exemption may be granted at any time and from time to time for a specified period or periods.
   2. (b) Within ten days from a denial of an insurer's written request for an exemption from this rule, the insurer may request in writing a hearing on its application for an exemption.
   3. (c) The hearing shall be held in accordance with the rules of the department pertaining to administrative hearing procedures.
2. (2) Foreign insurers shall comply with this rule.

3. (3)(a) An insurer or group of insurers that is not required to have independent audit committee members or only a majority of independent audit committee members, as opposed to a supermajority, because the total written and assumed premium is below the threshold and subsequently becomes subject to one of the independence requirements due to changes in premium, shall have one year following the year the threshold is exceeded to comply with the independence requirements.

   1. (b) An insurer that becomes subject to one of the independence requirements as a result of a business combination shall have one calendar year following the date of acquisition or combination to comply with the independence requirements.

4. (4)(a) An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold, and subsequently becomes subject to the reporting requirements, shall have two years following the year the threshold is exceeded to file a report.

   1. (b) An insurer acquired in a business combination shall have two calendar years following the date of acquisition or combination to comply with the reporting requirements.

KEY: insurance company financial reporting

Date of Last Change: January 10, 2023

Notice of Continuation: June 25, 2024

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-203; 31A-5-412