Illinois Administrative Code › Title 50 - INSURANCE › Part 925 - ANNUAL FINANCIAL REPORTING › Section 925.60 - Designation of Independent Certified Public Accountant

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each insurer required by this Part to file
			 an annual audited financial report must, within 60 days after becoming subject
			 to such requirement, register with the Director in writing the name and address
			 of the independent certified public accountant retained to conduct the annual
			 audit set forth in this Part. Insurers not retaining an independent certified
			 public accountant on the effective date of this Part (July 9, 1975) shall
			 register the name and address of their retained independent certified public
			 accountant not less than 6 months before the date when the first audited
			 financial report is to be filed.
b)
			 If the independent certified public accountant, who was not the accountant for
			 the immediately preceding filed annual audited financial report, is engaged to
			 audit the insurer's financial statements, the insurer shall within 30 days
			 after the date the independent certified public accountant is engaged notify
			 the Director of this event. The insurer shall obtain a letter from the
			 accountant and file a copy with the Director stating that the accountant is
			 aware of the provisions of the Code and/or Health Maintenance Organization Act
			 and/or the Limited Health Service Organization Act and the Rules and
			 Regulations of the insurance regulatory authority of the state of domicile that
			 relate to accounting and financial matters and affirming that the accountant
			 will express its opinion on the financial statements in terms of their
			 conformity to the statutory accounting practices prescribed or otherwise
			 permitted by that insurance regulatory authority, specifying such exceptions as
			 the accountant may believe appropriate.
c) If an accountant who was the accountant
			 for the immediately preceding filed annual audited financial report is
			 dismissed or resigns, the insurer shall within 5 business days notify the
			 Director of this event. The insurer shall also furnish the Director with a
			 separate letter within 10 business days after the above notification stating
			 whether in the 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 the accountant to make reference to the subject matter of the
			 disagreement in connection with the accountant's opinion. The disagreements
			 required to be reported in response to this subsection include both those
			 resolved to the former accountant's satisfaction and those not resolved to the
			 former accountant's satisfaction. Disagreements contemplated by this subsection
			 are those that occur at the decisionmaking level, between personnel of the
			 insurer responsible for presentation of its financial statements and personnel
			 of the accounting firm responsible for rendering the accountant's report. The
			 insurer shall also in writing request such former accountant to furnish it 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 the accountant does not agree; and the insurer shall furnish such
			 responsive letter from the former accountant to the Director together with its
			 own.