Utah Admin. Code R590-254-6 - Designation of Independent Certified Public Accountant
(1) Each insurer required by this rule to
file an annual audited financial report must 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 rule.
(2) Any insurer not retaining an independent
certified public accountant on the effective date of this rule 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.
(3) 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 of the insurance department of the state of
domicile that relate to accounting and financial matters and affirming that the
accountant will express an 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 the
accountant may believe appropriate.
(4) If an accountant who was the accountant
for the immediately preceding filed audited financial report is dismissed or
resigns, the insurer shall:
(a) within five
business days notify the commissioner of this event;
(b) 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 practices, financial
statement disclosure, or auditing scope or procedure; which disagreements, if
not resolved to the satisfaction of the former accountant, would have caused
the accountant to make reference to the subject matter of the disagreement in
connection with an opinion:
(i) 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; and
(ii) disagreements contemplated by this
section are those that occur at the decision-making level, such as between
personnel of the insurer responsible for presentation of its financial
statements and personnel of the accounting firm responsible for rendering its
report; and
(c) 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; the insurer shall furnish the response letter from the former
accountant to the commissioner together with its own.
Notes
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