Insurance companies and health maintenance organizations (collectively referred to as reporting entities) file quarterly and annual financial statements in each state in which a reporting entity is domiciled or licensed. The financial statements are prepared on forms promulgated by the National Association of Insurance Commissioners (NAIC), also referred to as the "convention blank," "statutory blank," or simply the "blank."
The Annual Statement is used by state regulators to monitor the financial condition of the reporting entity between regulatory examinations (generally every 3 to 5 years) and to obtain financial data used to regulate the industry. To accomplish these objectives, states require the Annual Statement to be prepared using practices or procedures prescribed or permitted by the laws and regulations of a reporting entity's state of domicile. These practices may, however, differ from state to state, and each state's insurance laws and regulations should be consulted. However, all states have adopted the NAIC’s Accounting Practices and Procedures Manual as the basis for its state-based accounting framework. The Annual Statement is due by March 1 and the statutory basis audited financial statements are generally due June 1.
Statutory accounting and reporting applies to all insurers authorized to do business in the United States and its territories.
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