§ 27-1-3.5-8 — Independent auditor

Indiana § 27-1-3.5-8

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 1: DEPARTMENT OF INSURANCE
• Ch. 3.5: Annual Audited Financial Reports

Text

(a) A domestic insurer that is required by this
chapter to file annual audited financial reports shall, not more than
sixty (60) days after becoming subject to the requirement, register in
writing with the commissioner the name and address of the
independent auditor retained by the insurer to conduct the annual
audits required by this chapter. The domestic insurer shall continuously
ensure that the information provided to the commissioner under this
section is accurate, and shall inform the commissioner in writing of any
change in the identity or address of its independent auditor.
(b) A domestic insurer shall obtain a letter from its independent
auditor that:
(1) states that the independent auditor is aware of the provisions
of IC 27 and the administrative rules of the department of
insurance that relate to auditing, accounting, and financial
matters; and
(2) affirms that the independent auditor will express its opinion on
the financial statements of the domestic insurer in the terms of
their conformity to the statutory accounting practices prescribed
or otherwise permitted by the department, specifying such
exceptions as the independent auditor may believe appropriate.
The domestic insurer shall file a copy of this letter with the
commissioner.
(c) If an independent auditor that audited the most recent financial
report filed by the insurer with the commissioner under this chapter
subsequently ceases to be the independent auditor for the insurer, the
insurer shall:
(1) not more than five (5) business days after the cessation of the
independent auditor's services, notify the commissioner in writing
of the identity and address of the new independent auditor;
(2) not more than ten (10) business days after the notification
given in subdivision (1), furnish the commissioner with a separate
letter that states whether in the twenty-four (24) months preceding
the engagement of the new independent auditor there were any
disagreements between the insurer and its former independent
auditor on any matter of accounting principles or practices,
financial statement disclosure, or auditing scope or procedure,
which, if not resolved to the satisfaction of the former
independent auditor, would have caused the former independent
auditor to make reference to the subject matter of the
disagreement in the former independent auditor's statement of its
opinion on the insurer's financial report, and, if there was such a
disagreement, provides a description of the disagreement.
Disagreements required to be reported under this subdivision
include those at the decision making level that were resolved:
(A) to the former accountant's satisfaction; and
(B) not to the former accountant's satisfaction; and
(3) comply with subsection (d).
For the purposes of this subsection, "decision making level" refers to
the personnel of the insurer who are responsible for the presentation of
the insurer's financial statements and the personnel of the independent
auditor who are responsible for rendering the opinion of the auditor on
the insurer's financial report.
(d) A domestic insurer subject to the provisions of subsection (c)
shall:
(1) provide its former independent auditor with a copy of the
letter furnished to the commissioner under subsection (c)(2); and
(2) request in writing its former independent auditor to furnish a
letter addressed to the insurer stating whether the former
independent auditor agrees with the statements contained in the
letter furnished to the commissioner under subsection (c)(2) and,
if not, stating the reasons for the former independent auditor's
disagreement.
The domestic insurer shall furnish the commissioner with a copy of any
responsive letter it receives from its former independent auditor within
five (5) business days after the insurer receives the letter.

Legislative History

As added by P.L.244-1989, SEC.2. Amended by P.L.251-1995, SEC.8.