NAC680A.193. Additional report required on internal control; contents.

     1. In addition to the annual Audited Financial Report, each insurer shall furnish the Commissioner with a completed Communication of Internal Control Related Matters Noted in an Audit as to any unremediated material weaknesses in its internal control over financial reporting noted during the audit.

     2. The report required pursuant to the provisions of this section must be prepared by the independent certified public accountant within 60 days after the date on which the annual Audited Financial Report is filed with the Commissioner and must contain a description of any unremediated material weakness in the insurer’s internal control over financial reporting noted during the audit of the insurer’s financial statements by the accountant, as of December 31 of the most recent calendar year.

     3. If there are no unremediated material weaknesses noted, the report to the Commissioner must state that there are no unremediated material weaknesses noted.

     4. The insurer must provide a description of any remedial actions taken or proposed to be taken to correct any unremediated material weaknesses, if the actions taken by the insurer are not described in the accountant’s report.

     5. As used in this section, “unremediated material weakness” has the meaning ascribed to it in the Statements of Auditing Standards No. 112, Communicating Internal Control Related Matters Identified in an Audit, included in 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)