Connecticut Administrative Code › Title 38a - Insurance Department › 54 - Annual Audited Financial Reports › Section 38a-54-5 - Designation of independent certified public accountant

Current through July 10, 2024
(a) Each insurer required to file an annual
			 audited financial report pursuant to Section
			 38a-54-3
			 of the Regulations of Connecticut State Agencies shall within sixty (60) days
			 after becoming subject to such 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 required by Section
			 38a-54-3
			 of the Regulations of Connecticut State Agencies. Insurers not retaining an
			 independent certified public accountant on the effective date of Section
			 38a-54-3
			 of the Regulations of Connecticut State Agencies 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.
(b) 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
			 rules and Regulations of the insurance department of its state of domicile that
			 relate to accounting and financial matters and affirming that he or she 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 such department, specifying such exceptions as he or she may
			 believe appropriate. If an accountant who was the accountant for the
			 immediately preceding filed audited financial report is dismissed or resigns,
			 the insurer shall notify the Connecticut Insurance Department within five (5)
			 business days 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 independent accountant's satisfaction. Disagreements contemplated
			 by this section are those that occur at the decision-making level, that is,
			 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 such 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 such
			 responsive letter from the former accountant to the Commissioner together with
			 its own.