§ 58-10-205. Designation of independent certified public accountant. - North Carolina Statutes

§ 58‑10‑205. Designation of independent certified public accountant.

(a)        Each insurerrequired by this Part to file an annual audited financial report must, within60 days after becoming subject to the requirement, register with theCommissioner in writing the name and address of the independent certifiedpublic accountant or accounting firm retained to conduct the annual audit.Insurers not retaining an independent certified public accountant on July 31,2009, shall register the name and address of their retained independentcertified public accountant not less than six months before the date when thefirst audited financial report is to be filed.

(b)        The insurer shallobtain a letter from the accountant and file a copy with the Commissionerstating that the accountant is aware of the provisions of the insurance lawsand the regulations of the State of North Carolina that relate to accountingand financial matters and affirming that the accountant will express his or heropinion on the financial statement in terms of its conformity to the statutoryaccounting practices prescribed or otherwise permitted by the Commissioner,specifying such exceptions as he or she may believe appropriate.

(c)        If an accountantfor the immediately preceding filed audited financial report is dismissed orresigns, the insurer shall within five business days notify the Commissioner ofthis event. The insurer shall also furnish the Commissioner with a separateletter within 10 business days after the notification stating whether in the 24months preceding such event there were any disagreements with the formeraccountant on any matter of accounting principles or practices, financialstatement disclosure, or auditing scope or procedure; which disagreements, ifnot resolved to the satisfaction of the former accountant, would have causedhim or her to make reference to the subject matter of the disagreement inconnection with his or her opinion. The disagreements required to be reportedin response to this section include both those resolved to the formeraccountant's satisfaction and those not resolved to the former accountant'ssatisfaction. Disagreements contemplated by this section could include, but arenot limited to, disagreements between personnel of the insurer responsible forpresentation of its financial statements and personnel of the accounting firmresponsible for rendering its report. The insurer shall also in writing requestthe former accountant to furnish a letter addressed to the insurer statingwhether the accountant agrees with the statements contained in the insurer'sletter and, if not, stating the reasons for which he or she does not agree; andthe insurer shall furnish the responsive letter from the former accountant tothe Commissioner together with its own.  (2009‑384, s. 1.)