Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 20 - Insurance › Subchapter 45 - Financial Standards and Corporate Operations › Part 7 - Annual Financial Reporting › Section 230-RICR-20-45-7.6 - Designation of Independent Certified Public Accountant

Current through June 14, 2024
A. Each insurer required by this Regulation
				  to file an annual aaudited financial report must, 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 set forth in this
				  Regulation. Insurers not retaining an independent Certified Public Accountant
				  on the effective date of this Regulation 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 aaudited 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 the 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.
C. If an
				  accountant who was the accountant for the immediately preceding filed audited
				  financial report is dismissed or resigns the insurer shall within five (5)
				  business days notify the Commissioner 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 §
										7.6   of this Part include both those resolved to the former
				  accountant's satisfaction and those not resolved to the former accountant's
				  satisfaction. Disagreements contemplated by §
										7.6   of this Part 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 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.