Section 760 IAC 1-78-2 - DefinitionsAuthority: IC 27-1-3-7
Affected: IC 27-1-3.5; IC 27-1-23
Sec. 2.
The following definitions apply throughout this rule:
(1) "Accountant" or "independent certified public accountant" means an independent certified public accountant or accounting firm in good standing:(B) in all states in which the person or firm is licensed to practice. For Canadian and British companies, it means a Canadian-chartered or British-chartered accountant.
(2) "Affiliate of" or "affiliated with" (a specific person) means a person that directly, or indirectly through one (1) or more intermediaries:(C) is under common control with; the person specified. (3) "AICPA" means the American Institute of Certified Public Accountants.(4) "Audit committee" means a committee (or equivalent body) established by the board of directors of an entity for the purpose of overseeing: (A) the accounting and financial reporting processes of an insurer or group of insurers; and(B) audits of financial statements of the insurer or group of insurers. The audit committee of any entity that controls a group of insurers may be deemed to be the audit committee for one (1) or more of these controlled insurers solely for the purposes of this rule at the election of the controlling person. If an audit committee is not designated by the insurer, the insurer's entire board of directors shall constitute the audit committee.
(5) "Audited financial report" means and includes those items specified in section 4 of this rule.(6) "Commissioner" means the commissioner of the department.(7) "Department" means the Indiana department of insurance.(8) "Group of insurers" means:(A) those licensed insurers included in the reporting requirements of IC 27-1-23; or(B) a set of insurers as identified by management for the purpose of assessing the effectiveness of internal control over financial reporting.(9) "Indemnification" means: (A) an agreement of indemnity; or(B) a release from liability; where the intent or effect is to shift or limit in any manner the potential liability of the person or firm for failure to adhere to applicable auditing or professional standards, whether or not resulting in part from knowing of other misrepresentations made by the insurer or its representatives. (10) "Independent board member" has the same meaning as described in section 13(d) of this rule.(11) "Insurer" means a company required to be:(B) authorized; under the laws of this state to provide insurance products. (12) "Internal control over financial reporting" means a process effected by an entity's board of directors, management, and other personnel designed to provide reasonable assurance regarding the reliability of the financial statements. This includes the following:(A) Those items specified in section 4(b)(2) through 4(b)(7) of this rule.(B) Those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets;(ii) provide reasonable assurance that: (AA) transactions are recorded as necessary to permit preparation of the financial statements, that is, those items specified in section 4(b)(2) through 4(b)(7) of this rule; and(BB) receipts and expenditures are being made only in accordance with authorizations of management and directors; and(iii) provide reasonable assurance regarding prevention or timely detection of: (AA) unauthorized acquisition;(CC) disposition of assets; that could have a material effect on the financial statements, that is, those items specified in section 4(b)(2) through 4(b)(7) of this rule. (13) "NAIC" means the National Association of Insurance Commissioners.(14) "SEC" means the United States Securities and Exchange Commission.(15) "Section 404" means Section 404 of the Sarbanes-Oxley Act of 2002 and the SEC's rules and regulations promulgated thereunder.(16) "Section 404 report" means management's report on internal control over financial reporting as defined by the SEC and the related attestation report of the independent certified public accountant as described in this section.(17) "SOX compliant entity" means an entity that either is required to be compliant with or voluntarily is compliant with all of the following provisions of the Sarbanes-Oxley Act of 2002: (A) The preapproval requirements of Section 201 (Section 10A(i) of the Securities Exchange Act of 1934).(B) The audit committee independence requirements of Section 301 (Section 10A(m)(3) of the Securities Exchange Act of 1934).(C) The internal control over financial reporting requirements of Section 404 (Item 308 of SEC Regulation S-K). Department of Insurance; 760 IAC 1-78-2; filed Oct 27, 2009, 2:52 p.m.: 20091125-IR-760090376FRAReadopted filed 11/20/2015, 9:25 a.m.: 20151216-IR-760150341RFAReadopted filed 11/15/2021, 8:32 a.m.: 20211215-IR-760210419RFA