Montana Administrative Register Notice 6-194 No. 9   05/12/2011    
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In the matter of the amendment of ARM 6.6.3504 pertaining to Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements










TO:  All Concerned Persons


1.  On July 5, 2011, the Commissioner of Insurance, Office of the State Auditor, Monica Lindeen, proposes to amend the above-stated rule.


2.  The Commissioner of Insurance, Office of the State Auditor, Monica Lindeen, will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation, contact the department no later than 5:00 p.m. on June 6, 2011, to advise us of the nature of the accommodation that you need.  Please contact Darla Sautter, State Auditor's Office, 840 Helena Avenue, Helena, Montana, 59601; telephone (406) 444-2726; TDD (406) 444-3246; fax (406) 444-3497; or e-mail dsautter@mt.gov.


3.  The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:



(1) through (2)(f) remain the same.

(i)  These notes shall be those required by the appropriate 2009 2010 NAIC Annual Statement Instructions and the March 2009 2010 NAIC Accounting Practices and Procedures Manual, which are adopted and incorporated by reference, and may be obtained by writing to the NAIC Executive Headquarters, 2301 McGee Street, Suite 800, Kansas City, MO 64108-2662.  The notes shall include reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to 33-2-701, 33-4-313, 33-7-118, 33-30-107, 33-31-211, MCA, with a written description of the nature of these differences.

(3) remains the same.


AUTH:  33-1-313, 33-2-1517, MCA

IMP:  33-2-701, 33-2-1517, 33-4-313, 33-5-413, MCA


            4.  STATEMENT OF REASONABLE NECESSITY:  The contents of the annual audited financial report are set out in ARM 6.6.3504.  It is reasonably necessary to amend ARM 6.6.3504 to reference and require compliance with the current NAIC Annual Statement Instructions, and the effective NAIC Accounting Practices and Procedures Manual by insurers completing annual audited financial reports.  The current rule references and requires compliance with the 2009 versions.


5.  Concerned persons may submit their data, views, or arguments concerning the proposed action in writing to: Steve Matthews, Bureau Chief, State Auditor's Office, 840 Helena Avenue, Helena, Montana, 59601; telephone (406) 444-2040; fax (406) 444-3497; or e-mail smatthews@mt.gov, and must be received no later than 5:00 p.m., June 13, 2011.


6.  If persons who are directly affected by the proposed action wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Steve Matthews at the above address no later than 5:00 p.m., June 13, 2011.


7.  If the agency receives requests for a public hearing on the proposed action from either 10 percent or 25, whichever is less, of the persons directly affected by the proposed action; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date.  Notice of the hearing will be published in the Montana Administrative Register.  Ten percent of those directly affected has been determined to be 32 persons based on the number of people on the Interested Parties list.


8.  The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices.  Notices will be sent by e-mail unless a mailing preference is noted in the request.  Such written request may be mailed or delivered to Darla Sautter using the contact information in 2 above, or may be made by completing a request form at any rules hearing held by the department.


9.  An electronic copy of this proposal notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register. The Secretary of State strives to make the electronic copy of this notice conform to the official version of the notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the notice and the electronic version of the notice, only the official printed text will be considered. In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.


10.  The bill sponsor contact requirements of 2-4-302, MCA, do not apply.



/s/  Christina L. Goe                                      /s/  Jesse Laslovich             

Christina L. Goe                                            Jesse Laslovich

Rule Reviewer                                               Chief Legal Counsel



Certified to the Secretary of State May 2, 2011.



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