NAC680A.191. Report of misstatements of financial condition or inability to meet minimum capital and surplus requirements.

     1. An insurer required to furnish an annual Audited Financial Report shall require the independent certified public accountant to report, in writing and within 5 business days, to the board of directors or its audit committee each determination by the independent certified public accountant that the insurer:

     (a) Has materially misstated its financial condition as reported to the Commissioner as of the balance sheet date currently under audit; or

     (b) As of that date, does not meet the minimum capital and surplus requirements as set forth in this chapter and chapter 680A of NRS.

     2. An insurer who receives a report from its independent certified public accountant pursuant to this section shall, within 5 business days after receipt of the report:

     (a) Forward a copy of the report to the Commissioner; and

     (b) Provide evidence to the independent certified public accountant making the report that the insurer has forwarded a copy of the report to the Commissioner.

     3. If the independent certified public accountant fails to receive the evidence within the required period, the independent certified public accountant shall furnish to the Commissioner a copy of its report within the next 5 business days.

     4. An independent certified public accountant shall not be liable in any manner to any person for any statement made in connection with subsection 1, 2 or 3 if the statement is made in good faith in compliance with this section.

     5. If, after the date on which the Audited Financial Report has been filed pursuant to NRS 680A.265 and the regulations adopted pursuant thereto, the independent certified public accountant becomes aware of facts that might have affected his or her report, the accountant shall take such action as prescribed in AU Section 561, Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report, of the AICPA Professional Standards, adopted by reference in NAC 680A.189.

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