20-1098.07 - Arizona Statutes

20-1098.07. Annual report A. Not later than ninety days after the end of the captive insurer's fiscal year, the captive insurer shall submit to the director a report of its financial condition that is verified by oath of two of its executive officers and that is supplemented by additional information as required by the director. Except as provided in section 20-1098.03, a captive insurer may submit a report that uses generally accepted accounting principles unless the director requires the captive insurer to use statutory accounting principles with any useful or necessary modifications or adaptations of those principles required by the director for the type of insurance and kinds of insurers to be reported on. B. The captive insurer's financial statements shall be audited by an independent certified public accountant unless the director determines that an audit is not necessary. The audit shall include a reconciliation of differences, if any, between the audited financial report and the statement or form filed with the department. The audit opinion shall be filed with the director not later than six months after the end of the captive insurer's fiscal year. C. Unless exempted by the director, the annual report shall include an opinion as to the adequacy of the captive insurer's loss reserves and loss expense reserves. A member in good standing of the casualty actuarial society, a member in good standing of the American academy of actuaries or an individual who has demonstrated competence in loss reserve evaluations to the director shall certify the opinion.