Alabama Administrative Code › Title 482 - ALABAMA DEPARTMENT OF INSURANCE › Chapter 482-1-141 - ANNUAL FINANCIAL REPORTING › Section 482-1-141-.06 - Designation Of Independent Certified Public Accountant

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Each insurer required by this chapter to
			 file an annual audited financial report must within sixty (60) days after
			 becoming subject to the requirement, register with the commissioner in writing
			 the name and address of the independent certified public accountant or
			 accounting firm retained to conduct the annual audit set forth in this chapter.
			 Insurers not retaining an independent certified public accountant on the
			 effective date of this chapter shall register the name and address of their
			 retained independent certified public accountant not less than six (6) months
			 before the date when the first audited financial report is to be
			 filed.
(2) The insurer shall obtain
			 a letter from the accountant, and file a copy with the commissioner stating
			 that the accountant is aware of the provisions of the insurance code and the
			 regulations of the insurance department of the state of domicile that relate to
			 accounting and financial matters and affirming that the accountant will express
			 his or her opinion on the financial statements in terms of their conformity to
			 the statutory accounting practices prescribed or otherwise permitted by that
			 insurance department, specifying such exceptions as he or she may believe
			 appropriate.
(3) If an accountant
			 who was the accountant for the immediately preceding filed audited financial
			 report is dismissed or resigns, the insurer shall within five (5) business days
			 notify the commissioner of this event. The insurer shall also furnish the
			 commissioner with a separate letter within ten (10) business days of the above
			 notification stating whether in the twenty-four (24) months preceding such
			 event there were any disagreements with the former accountant on any matter of
			 accounting principles or practices, financial statement disclosure, or auditing
			 scope or procedure; which disagreements, if not resolved to the satisfaction of
			 the former accountant, would have caused him or her to make reference to the
			 subject matter of the disagreement in connection with his or her opinion. The
			 disagreements required to be reported in response to this section include both
			 those resolved to the former accountant's satisfaction and those not resolved
			 to the former accountant's satisfaction. Disagreements contemplated by this
			 section are those that occur at the decision-making level, i.e., between
			 personnel of the insurer responsible for presentation of its financial
			 statements and personnel of the accounting firm responsible for rendering its
			 report. The insurer shall also in writing request the former accountant to
			 furnish a letter addressed to the insurer stating whether the accountant agrees
			 with the statements contained in the insurer's letter and, if not, stating the
			 reasons for which he or she does not agree; and the insurer shall furnish the
			 responsive letter from the former accountant to the commissioner together with
			 its own.
Author:
Commissioner of Insurance
Statutory Authority:
Code of Ala.
				  1975
, §
										27-2-17.