TO: All Insurers Licensed to Transact Insurance in California
       (Chief Financial Officer and Other Interested Persons)

SUBJECT: Filing of Audited Financial Statement as Required Pursuant to Title 10, Chapter 5, Sections 2309.2 through 2309.20 of the California Code of Regulations.

The purpose of this regulations is to improve surveillance by the California Department of Insurance 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 of Internal Control over Financial Reporting. Please review the referenced regulations to determine their impact on your company.

Filing instructions are included in the annual statement filing instructions found on the California Department of Insurance public Website. Questions regarding this matter can be addressed to the following:

California Department of Insurance
Financial Analysis Division
300 South Spring Street, 13th Floor, SouthTower
Los Angeles, California 90013
Attention: Financial Records Unit

If you have any questions regarding the filing/submittal process contact:

Financial Records Unit
Phone: (213) 346-6423
Email: Financial_Records@insurance.ca.gov

Deputy Insurance Commissioner
Financial Surveillance Branch