NOTICE OF ADOPTION- Chapter 56, Annual Audited Financial Reports

Chapter 56 of the Insurance Department Rules has now been filed with the Secretary of State for adoption.

Chapter 56 entitled, “Annual Audited Financial Reports” was amended to strengthen requirements related to the CPA independence and include new governance standards, primarily requiring that an insurer have an audit committee that is responsible for the appointment, oversight and compensation of the CPA. The amendments also indicate that management of insurers with direct and assumed premium over $500 million shall provide the Department of Insurance with an assessment of its internal control over financial reporting. The amendments to Chapter 56 bring the regulation into conformance with the National Association of Insurance Commissioner’s (NAIC) Model Audit Rule. The rule was filed with the Secretary of State on March 2, 2009, with an implementation date of March 7, 2009.

Copies of Chapter 56 may be obtained by forwarding a check in the amount of $12.00 for each copy requested made payable to the Nebraska Department of Insurance, 941 O Street, Suite 400, Lincoln, Nebraska 68508, and through the Department’s web site at Any questions concerning Chapter 56 should be directed to Christy Neighbors.