# COMAR 31.05.11.01: COMAR 31.05.11.01. Purpose and Scope > Maryland · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_01 ## Section - **Citation:** COMAR 31.05.11.01 - **Heading:** COMAR 31.05.11.01. Purpose and Scope - **Jurisdiction:** Maryland - **Kind:** Regulations - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Code of Maryland Regulations / Title 31 MARYLAND INSURANCE ADMINISTRATION / Subtitle 05 ASSETS, LIABILITIES, RESERVES, AND INVESTMENTS OF INSURERS / Chapter 11 Annual Financial Reporting / COMAR 31.05.11.01 ## Text A. Purpose. The purpose of this chapter is to improve the Maryland Insurance Administration's surveillance of the financial condition of insurers by requiring: (1) An annual audit of financial statements reporting the financial position and the results of operations of insurers by independent certified public accountants; (2) Communication of Internal Control Related Matters Noted in an Audit; and (3) Management's Report on Internal Control over Financial Reporting. B. Scope. Except as provided in §C of this regulation , an insurer is subject to this chapter. C. Exemptions. (1) Insurers having direct premiums written in this State of less than $1,000,000 in any calendar year and less than 1,000 policyholders or certificate holders of direct written policies nationwide at the end of the calendar year are exempt from this chapter for the year, unless the Commissioner makes a specific finding that compliance is necessary for the Commissioner to carry out statutory responsibilities. Insurers having assumed premiums pursuant to contracts or treaties of reinsurance of $1,000,000 or more are not exempt. (2) Foreign or alien insurers filing the audited financial report in another state, pursuant to that state's requirement for filing of audited financial reports, which has been found by the Commissioner to be substantially similar to the requirements herein, are exempt from Regulations .03 — .12 of this chapter if: (a) A copy of the audited financial report, Communication of Internal Control Related Matters Noted in an Audit, and the Accountant's Letter of Qualifications that are filed with the other state are filed with the Commissioner in accordance with the filing dates specified in Regulations .03, .10, and .11 of this chapter, or Canadian insurers may submit copies of the accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada; and ol Related Matters Noted in an Audit, and the Accountant's Letter of Qualifications that are filed with the other state are filed with the Commissioner in accordance with the filing dates specified in Regulations .03, .10, and .11 of this chapter, or Canadian insurers may submit copies of the accountants' reports as filed with the Office of the Superintendent of Financial Institutions, Canada; and (b) A copy of any Notification of Adverse Financial Condition Report filed with the other state is filed with the Commissioner within the time specified in Regulation .09 of this chapter . (3) Foreign or alien insurers required to file Management's Report on Internal Control over Financial Reporting in another state are exempt from filing the report in Maryland, provided the other state has substantially similar reporting requirements, and the report is filed with the Commissioner of the other state within the time specified. D. This chapter does not prohibit, preclude, or in any way limit the Maryland Insurance Commissioner from ordering or conducting or performing examinations of insurers under the rules and regulations of the Maryland Insurance Administration, and the practices and procedures of the Maryland Insurance Administration. ## Nearby sections - [COMAR 31.05.11.01 COMAR 31.05.11.01. Purpose and Scope](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_01.md) - [COMAR 31.05.11.02 COMAR 31.05.11.02. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_02.md) - [COMAR 31.05.11.03 COMAR 31.05.11.03. Filing and Extensions for Filing Audited Financial Reports; Audit Committee Appointment](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_03.md) - [COMAR 31.05.11.04 COMAR 31.05.11.04. Contents of Annual Audited Financial Report](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_04.md) - [COMAR 31.05.11.05 COMAR 31.05.11.05. Designation of Independent Certified Public Accountant](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_05.md) - [COMAR 31.05.11.06 COMAR 31.05.11.06. Qualifications of Independent Certified Public Accountant](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_06.md) - [COMAR 31.05.11.07 COMAR 31.05.11.07. Consolidated or Combined Audits](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_07.md) - [COMAR 31.05.11.08 COMAR 31.05.11.08. Scope of Audit and Report of Independent Certified Public Accountant](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_08.md) - [COMAR 31.05.11.09 COMAR 31.05.11.09. Notification of Adverse Financial Condition](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_09.md) - [COMAR 31.05.11.10 COMAR 31.05.11.10. Communication of Internal Control Related Matters Noted in an Audit](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_10.md) - [COMAR 31.05.11.11 COMAR 31.05.11.11. Accountant's Letter of Qualifications](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_11.md) - [COMAR 31.05.11.12 COMAR 31.05.11.12. Definition, Availability, and Maintenance of Independent Certified Public Accountant's Workpapers](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_12.md) - [COMAR 31.05.11.13 COMAR 31.05.11.13. Requirements for Audit Committees](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_13.md) - [COMAR 31.05.11.14 COMAR 31.05.11.14. Internal Audit Function Requirements](https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_14.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MD_COMAR_31_05_11_01. Check the current official text before relying on it. Not legal advice.