Code of Maine Rules › 02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION › 031 - BUREAU OF INSURANCE › Chapter 235 - ANNUAL AUDITED FINANCIAL REPORTS › Section 031-235-5 - Designation of Independent Certified Public Accountant

Current through 2024-29, July 17, 2024
A. Each insurer required by this Rule to file
				an annual audited financial report must file with the Superintendent the name
				and address of the independent certified public accountant or accounting firm
				retained to conduct the annual audit pursuant to this Rule, together with a
				letter from the accountant stating that the accountant is aware of the
				provisions of the insurance code and the regulations of the insurance
				department of the insurer's 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. This information shall be filed within 60 days after the insurer
				becomes subject to the requirements of this Section.
B. The insurer shall have a written contract
				with the accountant. The terms of engagement shall include a commitment by the
				accountant to comply with the requirements to evaluate the insurer's internal
				controls pursuant to generally accepted auditing standards, to notify the
				insurer and the appropriate regulatory authorities of impaired or misstated
				financial condition, and to retain work papers and audit communications and
				make them available for regulatory inspection at the request of the
				Superintendent pursuant to Section
				12 of this Rule.
C. If the currently designated accountant or
				the accountant designated for the most recently filed audited financial report
				is dismissed or resigns, the insurer shall notify the Superintendent within
				five business days. Within ten business days thereafter, the insurer shall also
				furnish the Superintendent with a separate letter stating whether there were
				any disagreements in the preceding 24 months with the former designated
				accountant on any matter of accounting principles or practices, financial
				statement disclosure, or auditing scope or procedure, which if not resolved to
				the satisfaction of the former designated accountant would have caused him or
				her to make reference to the subject matter of the disagreement in connection
				with his or her opinion. Such disagreements must be reported whether or not
				they were resolved to the former designated accountant's satisfaction. The
				reporting requirement of this Section applies to disagreements 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
				make a written request to the former designated 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 designated accountant to the Superintendent
				together with its own.