Financial statement

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  • (a) Every commercial self-insurance fund shall, annually within 3 months of the end of the fiscal year, file a financial statement of the fund, including its balance sheet and a statement of operations for the preceding year, verified by the oath of a member of the board of trustees or by an administrative executive appointed by the board.

  • (b) Every fund shall, annually within six months of the end of the fiscal year, file a report with the Commissioner verified by the oath of a member of the board of trustees or by an administrative executive appointed by the board, containing the following information:

    • (1) A financial statement of the fund, including its balance sheet and a statement of operations for the preceding year certified by an independent certified public accountant.

    • (2) A report prepared by an actuary who is a member of the American Academy of Actuaries as to the actuarial soundness of the fund. The report shall consist of, but shall not be limited to, the following:

      • (A) Adequacy of premiums or contributions in paying claims and changes, if any, needed in the contribution rates to achieve or preserve a level of funding deemed adequate, which shall include a valuation of present assets, based on statement value, and prospective assets and liabilities of the plan and the extent of any unfunded accrued liabilities.

      • (B) A plan to amortize any unfunded liabilities and a description of actions taken to reduce unfunded liabilities.

      • (C) A description and explanation of actuarial assumptions.

      • (D) A schedule illustrating the amortization of any unfunded liabilities.

      • (E) A comparative review illustrating the level of funds available to the commercial self-insurance fund from rates, investment income, and other sources realized over the period covered by the report, indicating the assumptions used.

      • (F) A projection of the following year's plan of operation, including additional number of members, gross premiums to be written, and projected liabilities.

      • (G) A statement by the actuary that the report is complete and accurate and that in his opinion the techniques and assumptions used are reasonable and meet the requirements of this section.

      • (H) Other factors or statements as may be reasonably required by the Commissioner in order to determine the actuarial soundness of the plan.

    • (3) Any changes in the constitution, bylaws, or trust agreement of the fund.


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