Ill. Admin. Code tit. 50, § 925.60 - Designation of Independent Certified Public Accountant
a) Each insurer required by this Part to file
an annual audited financial report must, within 60 days after becoming subject
to such requirement, register with the Director in writing the name and address
of the independent certified public accountant retained to conduct the annual
audit set forth in this Part. Insurers not retaining an independent certified
public accountant on the effective date of this Part (July 9, 1975) shall
register the name and address of their retained independent certified public
accountant not less than 6 months before the date when the first audited
financial report is to be filed.
b)
If the independent certified public accountant, who was not the accountant for
the immediately preceding filed annual audited financial report, is engaged to
audit the insurer's financial statements, the insurer shall within 30 days
after the date the independent certified public accountant is engaged notify
the Director of this event. The insurer shall obtain a letter from the
accountant and file a copy with the Director stating that the accountant is
aware of the provisions of the Code and/or Health Maintenance Organization Act
and/or the Limited Health Service Organization Act and the Rules and
Regulations of the insurance regulatory authority of the state of domicile that
relate to accounting and financial matters and affirming that the accountant
will express its opinion on the financial statements in terms of their
conformity to the statutory accounting practices prescribed or otherwise
permitted by that insurance regulatory authority, specifying such exceptions as
the accountant may believe appropriate.
c) If an accountant who was the accountant
for the immediately preceding filed annual audited financial report is
dismissed or resigns, the insurer shall within 5 business days notify the
Director of this event. The insurer shall also furnish the Director with a
separate letter within 10 business days after 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 the accountant's opinion. The disagreements
required to be reported in response to this subsection include both those
resolved to the former accountant's satisfaction and those not resolved to the
former accountant's satisfaction. Disagreements contemplated by this subsection
are those that occur at the decisionmaking level, between personnel of the
insurer responsible for presentation of its financial statements and personnel
of the accounting firm responsible for rendering the accountant's report. The
insurer shall also in writing request such former accountant to furnish it 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; and the insurer shall furnish such
responsive letter from the former accountant to the Director together with its
own.
Notes
Amended at 33 Ill. Reg. 6974, effective May 11, 2009
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