Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-07 - Requirements as to company reports and annual statements › AUDITED FINANCIAL STATEMENTS › Section 284-07-140 - Designation of independent certified public accountant

Current through Register Vol. 24-14, July 15, 2024
(1) Each insurer required by WAC
				284-07-100 through
				284-07-230 to file an annual
				audited financial report must, within sixty 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 WAC
				284-07-100 through
				284-07-230. Insurers not
				retaining an independent certified public accountant on the effective date of
				WAC 284-07-100 through
				284-07-230 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 Washington state
				insurance code,
				Title
				48 RCW, and the rules 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 commissioner, specifying such exceptions as he or
				she 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 commissioner 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 twenty-four 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 this
				section include both those resolved to the former accountant's satisfaction and
				those not resolved to the former accountant's satisfaction. Disagreements
				contemplated by this section 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 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.
Statutory Authority:
					 RCW
					 48.02.060,
					 48.44.050,
					 48.46.200,
					 48.05.250,
					 48.44.095,
					 48.46.080,
					 48.46.200, and
					 48.125.090. 09-20-069 (Matter No.
					 R 2009-09), §
											284-07-140, filed 10/5/09,
					 effective 11/5/09. Statutory Authority:
					 RCW
					  48.02.060, 48.43.140,
					 48.44.050 and
					 48.46.200. 94-04-045 (Order R
					 94-2), §
											284-07-140, filed 1/27/94,
					 effective 2/27/94. Statutory Authority:
					 RCW
					 48.02.060. 92-19-040 (Order R 92-10), §
											284-07-140, filed 9/9/92,
					 effective 10/10/92.