Administrative Rules of Montana › Department 6 - STATE AUDITOR › Chapter 6.6 - INSURANCE DEPARTMENT › Subchapter 6.6.35 - Annual Audited Reports and Establishing Accounting Practices and Procedures to Be Used in Annual Statements › Rule 6.6.3505 - DESIGNATION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Current through Register Vol. 13, July 5, 2024
(1) Each insurer required by these rules to
				file an annual audited financial report must, within 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 these rules. Insurers not
				retaining an independent certified public accountant on the effective date of
				this rule shall register the name and address of their retained independent
				certified public accountant not less than six 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
				administrative rules of the insurance department of the insurer's state of
				domicile that relate to accounting and financial matters, and affirming that he
				will express his opinion on the financial statements in terms of their
				conformity with the statutory accounting practices prescribed or otherwise
				permitted by that department, specifying such exceptions as he 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 business days
				notify the department of this event. The insurer shall also furnish the
				commissioner with a separate letter within ten business days of the above
				notification, stating whether in the 24 months preceding such event there were
				any disagreements with the former accountant on any matters 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 to make reference to the subject
				matter of the disagreement in connection with his opinion. The disagreements
				required to be reported in response to this rule include both those resolved to
				the former accountant's satisfaction and those not resolved to the former
				accountant's satisfaction. Disagreements contemplated by this rule 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 does not
				agree; and the insurer shall furnish such responsive letter from the former
				accountant to the commissioner, together with its own.
33-1-313,
					 33-2-1517, MCA; IMP,
					 33-2-701,
					 33-2-1517,
					 33-4-313,
					 33-5-413,
					 MCA;