{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-311a.16","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-311A.16","heading":"Report of the insurer's internal control over","body":"financial reporting.\n\nA. Every insurer required to file an audited financial report\n\npursuant to the Oklahoma Annual Financial Report Act that has annual\n\ndirect written and assumed premiums, excluding premiums reinsured\n\nwith the Federal Crop Insurance Corporation and Federal Flood\n\nProgram, of Five Hundred Million Dollars ($500,000,000.00) or more\n\nshall prepare a report of the insurer's or group of insurers'\n\ninternal control over financial reporting. The report shall be\n\nfiled with the Insurance Commissioner along with the Communication\n\nof Internal Control Related Matters Noted in an Audit described\n\nunder Section 311A.11 of this title. Management's Report of\n\nInternal Control over Financial Reporting shall be as of December 31\n\nimmediately preceding.\n\nB. Notwithstanding the premium threshold in subsection A of\n\nthis section, the Commissioner may require an insurer to file\n\nManagement's Report of Internal Control over Financial Reporting if\n\nthe insurer is in any RBC level event, or meets any one or more of\n\nthe standards of an insurer deemed to be in hazardous financial\n\ncondition.\n\nC. An insurer or a group of insurers that is:\n\n1. Directly subject to Section 404;\n\n2. Part of a holding company system whose parent is directly\n\nsubject to Section 404;\n\n3. Not directly subject to Section 404 but is a SOX Compliant\n\nEntity; or\n\n4. A member of a holding company system whose parent is not\n\ndirectly subject to Section 404 but is a SOX Compliant Entity,\n\nmay file its or its parent's Section 404 Report and an addendum in\n\nsatisfaction of the requirements of this section provided that those\n\ninternal controls of the insurer or group of insurers' audited\n\nstatutory financial statements included in paragraphs 2 through 7 of\n\nsubsection B of Section 311A.5 of this title were included in the\n\nscope of the Section 404 Report. The addendum shall be a positive\n\nstatement by management that there are no material processes with\n\nrespect to the preparation of the insurer's or group of insurers'\n\naudited statutory financial statements included in paragraphs 2\n\nthrough 7 of subsection B of Section 311A.5 of this title excluded\n\nfrom the Section 404 Report. If there are internal controls of the\n\ninsurer or group of insurers that have a material impact on the\n\npreparation of the insurer's or group of insurers' audited statutory\n\nfinancial statements and those internal controls were not included\n\nin the scope of the Section 404 Report, the insurer or group of\n\ninsurers may either file a report pursuant to this section or the\n\nSection 404 Report and a report pursuant to this section for those\n\ninternal controls that have a material impact on the preparation of\n\nthe insurer's or group of insurers' audited statutory financial\n\nstatements not covered by the Section 404 Report.\n\nD. Management's Report of Internal Control over Financial\n\nReporting shall include:\n\n1. A statement that management is responsible for establishing\n\nand maintaining adequate internal control over financial reporting;\n\n2. A statement that management has established internal control\n\nover financial reporting and an assertion, to the best of the\n\nknowledge and belief of management, after diligent inquiry, as to\n\nwhether its internal control over financial reporting is effective\n\nto provide reasonable assurance regarding the reliability of\n\nfinancial statements in accordance with statutory accounting\n\nprinciples;\n\n3. A statement that briefly describes the approach or processes\n\nby which management evaluated the effectiveness of its internal\n\ncontrol over financial reporting;\n\n4. A statement that briefly describes the scope of work that is\n\nincluded and whether any internal controls were excluded;\n\n5. Disclosure of any unremediated material weaknesses in the\n\ninternal control over financial reporting identified by management\n\nas of December 31 immediately preceding. Management is not\nagement evaluated the effectiveness of its internal\n\ncontrol over financial reporting;\n\n4. A statement that briefly describes the scope of work that is\n\nincluded and whether any internal controls were excluded;\n\n5. Disclosure of any unremediated material weaknesses in the\n\ninternal control over financial reporting identified by management\n\nas of December 31 immediately preceding. Management is not\n\npermitted to conclude that the internal control over financial\n\nreporting is effective to provide reasonable assurance regarding the\n\nreliability of financial statements in accordance with statutory\n\naccounting principles if there is one or more unremediated material\n\nweaknesses in its internal control over financial reporting;\n\n6. A statement regarding the inherent limitations of internal\n\ncontrol systems; and\n\n7. Signatures of the chief executive officer and the chief\n\nfinancial officer or equivalent positions or titles.\n\nE. Management shall document and make available upon financial\n\ncondition examination the basis upon which its assertions, required\n\nin subsection D of this section, are made. Management may base its\n\nassertions, in part, upon its review, monitoring, and testing of\n\ninternal controls undertaken in the normal course of its activities.\n\n1. Management shall have discretion as to the nature of the\n\ninternal control framework used, and the nature and extent of\n\ndocumentation, in order to make its assertion in a cost-effective\n\nmanner and, as such, may include assembly of or reference to\n\nexisting documentation.\n\n2. Management's Report of Internal Control over Financial\n\nReporting, required by subsection A of this section and any\n\ndocumentation provided in support thereof during the course of a\n\nfinancial condition examination, shall be kept confidential by the\n\nInsurance Department.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"9f5fa20f46602b6e7d6f3959eba351d2e0cb9a48aed21be7d70e93361e4df166","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-311a.15","next":"us-ok/okla.-stat.-tit.-36-36-311a.17"},"notice":"GroundRules: Original legal text. Not legal advice."}