§ 58-10-225. Notification of adverse financial condition. - North Carolina Statutes

§ 58‑10‑225. Notification of adverse financial condition.

(a)        The insurerrequired to furnish the annual audited financial report shall require theindependent certified public accountant to report, in writing, within fivebusiness days to the board of directors or its audit committee anydetermination by the independent certified public accountant that the insurerhas materially misstated its financial condition as reported to theCommissioner as of the balance sheet date currently under audit or that theinsurer does not meet the minimum capital and surplus requirement of G.S. 58‑7‑75as of that date. An insurer that has received a report pursuant to thissubsection shall forward a copy of the report to the Commissioner within fivebusiness days after receipt of the report and shall provide the independentcertified public accountant making the report with evidence of the report beingfurnished to the Commissioner. If the independent certified public accountantfails to receive the evidence within the required five‑business‑dayperiod, the independent certified public accountant shall furnish to theCommissioner a copy of its report within the next five business days.

(b)        No independentcertified public accountant shall be liable in any manner to any person for anystatement made in connection with subsection (a) of this section if thestatement is made in good faith in compliance with that subsection.

(c)        If the accountant,subsequent to the date of the audited financial report filed pursuant to thisPart, becomes aware of facts that might have affected his or her report, theCommissioner notes the obligation of the accountant to take such action asprescribed in Volume 1, Section AU 561 of the Professional Standards of theAICPA.  (2009‑384,s. 1.)