Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After › Section 26.07 - Designation of Independent Certified Public Accountant

Current through Register 1525, July 5, 2024
Each insurer required by
				211 CMR 26.00 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 set forth in
				211 CMR 26.00 Insurers not
				retaining an independent certified public accountant on the effective date of
				211 CMR 26.00 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. Insurers shall notify the Commissioner of the engagement
				of an accountant within 30 days of such appointment if such accountant was not
				the accountant for purposes of
				211 CMR 26.00 for the
				immediately preceding year.
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 laws and regulations 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 the
				Division, 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 within five business days notify the Division of this event. The insurer
				also shall 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 matter of
				accounting principles or practice, 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 211 CMR 26.07 include both
				those resolved to the former accountant's satisfaction and those not resolved
				to the former accountant's satisfaction. Disagreements contemplated by 211 CMR
				26.07 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 the accountant does not agree; and the insurer shall furnish
				such responsive letter from the former accountant to the Commissioner together
				with its own.