Pennsylvania Code › Title 31 - INSURANCE › Part VIII - Miscellaneous Provisions › Chapter 147 - ANNUAL FINANCIAL REPORTING REQUIREMENTS › Section 147.5 - Designation of independent certified public accountant

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Each insurer required by this chapter to
				file an annual audited financial report shall, within 60 days after becoming
				subject to the 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 this chapter.
(b) The insurer shall obtain a letter from
				its independent certified public accountant and file a copy with the
				Commissioner, in accordance with the Department's instructions, stating that
				the independent certified public accountant is aware of the provisions of the
				insurance statutes and regulations that relate to accounting and financial
				matters of the State in accordance with whose regulation the audited financial
				report is made and affirming that the independent certified public accountant
				will express an opinion on the financial statements in terms of their
				conformity to the statutory accounting practices prescribed or otherwise
				permitted by the Department, specifying the exceptions the independent
				certified public accountant may believe appropriate.
(c) If an independent certified public
				accountant who was the independent certified public accountant for the
				immediately preceding filed audited financial report is dismissed, resigns or
				is otherwise replaced, the insurer shall within 5 business days notify the
				Department of the dismissal, resignation or replacement.
(1) Within 10 business days of submitting a
				notification of dismissal, resignation or replacement, the insurer shall also
				furnish the Commissioner with a separate letter stating whether, in the 24
				months preceding the dismissal, resignation or replacement, there were
				disagreements with the former independent certified public accountant on a
				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 independent certified public accountant, would have
				caused the independent certified public accountant to make reference to the
				subject matter of the disagreement in connection with the independent certified
				public accountant's opinion.
(2)
				The disagreements required to be reported include both those resolved to the
				former independent certified public accountant's satisfaction and those not
				resolved to the former independent certified public accountant's satisfaction.
				For purposes of this subsection, disagreements 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 the report. The insurer shall also in writing request
				the former independent certified public accountant to furnish it a letter
				addressed to the insurer stating whether the independent certified public
				accountant agrees with the statements contained in the letter of the insurer
				and, if not, stating the reasons for which the independent certified public
				accountant does not agree. The insurer shall furnish the responsive letter from
				the former independent certified public accountant to the Commissioner together
				with its own.
(3) Within 60
				business days of submitting a notification of dismissal, resignation or
				replacement, the insurer shall 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 under this chapter and shall
				obtain and file an awareness letter from the independent certified public
				accountants as required under subsection (b).