Section 3.21.715. Designation of independent certified public accountant.

	(a)  Within 60 days after the director notifies an insurer that the insurer is required to file an annual audited financial report, the insurer shall submit in writing to the director the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit.  
	(b)  An insurer shall obtain a letter from the retained accountant that states that the accountant is aware of the provisions of the law of this state that relate to accounting and financial matters and affirms that the accountant will express the opinion on the financial statements in terms of their conformity with accounting practices prescribed or otherwise permitted by the insurance regulatory official of the state of domicile and that specifies exceptions that the accountant believes are appropriate. The insurer shall file a copy of the letter with the director.  
	(c)  If the accountant who issued the last filed annual audited financial report is dismissed or resigns, the insurer shall notify the director within five working days after the date of the dismissal or resignation. Within 10 working days after the notification, the insurer shall furnish the director with a separate letter stating whether, in the two years preceding the date of the dismissal or resignation, any disagreements arose with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, and whether those disagreements, if not resolved to the satisfaction of the former accountant, would have caused the accountant to reference the subject matter of the disagreement in connection with the accountant's opinion. The disagreements that must be reported include those resolved to the former accountant's satisfaction and those not resolved to the former accountant's satisfaction and are disagreements that occurred at the decision-making level between personnel of the insurer responsible for presentation of its financial statements and personnel of the accountant responsible for issuing the audited financial report. The insurer shall request in writing that the former accountant 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 why the accountant disagrees. The insurer shall furnish to the director the former accountant's letter together with the insurer's letter.  

Authorities

21.06.060;21.06.090;21.09.200

Notes

Reference

3 AAC 21.765

Authority

AS 21.06.060 AS 21.06.090 AS 21.09.200

History

Eff. 8/31/2008, Register 187