Section 925.110   Report on Internal Control

In addition to the annual audited financial report, each insurer shall furnish the Director with a written report prepared by the accountant stating the accountant's evaluation of the accounting procedures of the insurer and the insurer's system of internal control, including any remedial action taken or proposed.  The written report shall include a description of any significant deficiencies in the insurer's internal control structure noted by the accountant during the audit. SAS No. 60, Communication of Internal Control Structure Matters Noted in an Audit (AU Section 325 of the Professional Standards of the American Institute of Certified Public Accountants) requires an accountant to communicate significant deficiencies (known as "reportable conditions") noted during a financial statement audit to the appropriate parties within an entity.  The written report shall be filed annually by the insurer with the Director, on or before June 1, along with the filing of the annual audited financial reports. The insurer is required to provide a description of remedial actions taken or proposed to correct significant deficiencies, if such actions are not described in the accountant's report.

(Source:  Amended at 27 Ill. Reg. 16121, effective October 6, 2003)