KRS 304.49-070: Annual report of financial condition.

(1) Captive insurance companies shall not be required to make any annual report except

as provided in KRS 304.49-010 to 304.49-230.

(2) (a) On or before March 1 of each year, each captive insurer shall submit to the

commissioner a report of its financial condi tion, verified by oath of two (2) of

its executive officers.

(b) Each captive insurer shall report using generally accepted accounting

principles, unless the commissioner approves the use of statutory accounting

principles or international accounting stand ards. The approved accounting

method may contain any appropriate or necessary modifications or adaptations

thereof required or approved or accepted by the commissioner for the type of

insurance and kinds of insurers to be reported upon, and as supplemented by

additional information required by the commissioner. Any captive insurer

whose use of statutory accounting principles is approved by the commissioner

may make modifications and adaptations as are necessary to record as

admitted the full value of all in vestments by the captive insurer permitted

under this subtitle and, subject to the commissioner's approval, to make its

reports under this section consistent with the purposes of this subtitle.

(c) Except as otherwise provided, all captive insurers, with t he exception of those

formed as a risk retention group, shall file reports on a form prescribed by the

commissioner. An actuarial opinion summary shall not be required to be filed

when a certification of loss and loss expense reserves and opinion of reserv e

adequacy is filed with the department by a captive insurer, unless otherwise

requested by the commissioner.

(d) A captive insurer formed as a risk retention group shall file reports pursuant to

KRS 304.2 -205 and an actuarial opinion summary pursuant to K RS 304.3 -

242, with additional information or modification as the commissioner may

prescribe.

(e) The commissioner shall by administrative regulation propose the forms in

which captive insurers shall report.

(3) Any captive insurer may make written application for filing the required report on a

fiscal year end. If an alternative reporting date is granted, the annual report is due

sixty (60) days after the fiscal year end.

(4) Sixty (60) days after the fiscal year end, a branch captive insurer shall file wit h the

commissioner a copy of all reports and statements required to be filed under the

laws of the jurisdiction in which the foreign captive insurer is formed, verified by

oath of two (2) of its executive officers. If the commissioner is satisfied that the

annual report filed by the foreign captive insurer in its domiciliary jurisdiction

provides adequate information concerning the financial condition of the foreign

captive insurer, the commissioner may waive the requirement for completion of the

captive annual statement for business written in the foreign jurisdiction.