NAC680A.181. Independent certified public accountant: Designation; letter; dismissal or resignation.

     1. Each insurer required to file an annual Audited Financial Report pursuant to NRS 680A.265 and the regulations adopted pursuant thereto must, within 60 days after becoming subject to the requirement, register with the Commissioner, in writing, the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit. An insurer who has not retained an independent certified public accountant or accounting firm on or before January 1, 2010, shall register with the Commissioner the name and address of the independent certified public accountant or accounting firm retained by the insurer not less than 6 months before the date when the first annual Audited Financial Report is to be filed.

     2. The insurer shall obtain from the accountant, and shall file with the Commissioner, a copy of a letter stating that the accountant is aware of the provisions of title 57 of NRS and the regulations adopted pursuant thereto that relate to accounting and financial matters and affirming that the accountant will express his or her opinion on the financial statements in terms of their conformity to the statutory accounting practices prescribed or otherwise permitted by the provisions of title 57 of NRS and the regulations adopted pursuant thereto, specifying such exceptions as he or she may believe appropriate.

     3. Subject to the provisions of subsections 4 and 5, if an independent certified public accountant who was the accountant for the most recent filing of the annual Audited Financial Report is dismissed or resigns, the insurer shall, within 5 business days after the dismissal or resignation, notify the Commissioner of the dismissal or resignation. Within 10 business days after notifying the Commissioner of the dismissal or resignation of the accountant, the insurer shall file with the Commissioner a separate letter stating whether, during the 24 months preceding the dismissal or resignation, there were any disagreements between the former accountant and the insurer on any matter of accounting principles or practices, financial statement disclosure, or the scope or procedure of an audit and which disagreements, if not resolved to the satisfaction of the former accountant, would have caused the accountant to make a reference to the subject matter of the disagreement in connection with his or her opinion filed with the annual Audited Financial Report of the insurer.

     4. The disagreements that are required to be reported pursuant to subsection 3 include both those resolved and those not resolved to the satisfaction of the former accountant. The disagreements contemplated by this section are those disagreements that occur at the decision-making level, including, without limitation, disagreements between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report.

     5. 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 he or she does not agree. The insurer shall furnish the responsive letter from the former accountant to the Commissioner together with its own letter.

     (Added to NAC by Comm’r of Insurance by R205-08, 11-25-2009, eff. 1-1-2010)