3901-11-04. Notification of materially misstated financial condition

(A) Purpose

The purpose of this rule is to establish the notice requirements of the captive insurance company's independent certified public accountant in the event of the determination that the captive insurance company materially misstated its financial condition in its report to the superintendent of insurance pursuant to section 3964.07 of the Revised Code.

(B) Authority

This rule is promulgated pursuant to the authority vested in the superintendent under section 3964.21 of the Revised Code.

(C) Notification of adverse financial condition

A captive insurance company shall require the independent certified public accountant retained by the captive insurance company to prepare the audited financial report to be filed with the superintendent of insurance to immediately notify in writing an officer and all members of the board of directors of the captive insurance company of any determination by the independent certified public accountant that the captive insurance company has materially misstated its financial condition in its report to the superintendent of insurance as required by section 3964.07 of the Revised Code or that, since its last financial report the captive has experienced results which lead the certified public accountant to the determination that the captive is in adverse financial condition. The independent certified public accountant shall furnish a copy of such notification to the superintendent of insurance within five business days of notifying the captive insurance company.

(D) Severability

If any paragraph, term or provision of this rule is adjudged invalid for any reason, the judgment shall not affect, impair or invalidate any other paragraph, term or provision of this rule, but the remaining paragraphs, terms and provisions shall be and continue in full force and effect.

Five Year Review (FYR) Dates: 8/29/2019 and 08/29/2024
Promulgated Under: 119.03
Statutory Authority: 3901.041, 3964.21
Rule Amplifies: 3964.07
Prior Effective Dates: 12/21/2014

Prior History: (Effective: 12/21/2014
Five Year Review (FYR) Dates: 08/26/2019
Promulgated Under: 119.03
Statutory Authority: 3901.041, 3964.21
Rule Amplifies: 3964.07)