NAC680A.195. Required letter by accountant.

An independent certified public accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual Audited Financial Report, a letter which states each of the following:

     1. That the accountant is independent with respect to the insurer and conforms to the standards of his or her profession as contained in the AICPA Code of Professional Conduct and Bylaws, the pronouncements of the American Institute of Certified Public Accountants and the Rules of Professional Conduct of the Nevada State Board of Accountancy.

     2. The background and experience of the accountant in general, the experience of the staff of the accountant in audits of insurers, and whether each member of that staff which will audit the insurer is an independent certified public accountant. The provisions of NAC 680A.173 to 680A.211, inclusive, will not be construed as prohibiting the accountant from using such staff as he or she deems necessary if such use of staff is consistent with the standards prescribed by generally accepted auditing standards.

     3. That the accountant understands that the annual Audited Financial Report and his or her opinion thereon will be filed pursuant to NRS 680A.265 and the regulations adopted pursuant thereto, and that the Commissioner will be relying on this information to monitor and regulate the financial position of the insurers.

     4. That the accountant consents to the requirements of NAC 680A.197 and that the accountant consents and agrees to make available for review by the Commissioner, or the Commissioner’s designee or appointed agent, the workpapers as defined in NAC 680A.197.

     5. That the accountant is properly licensed, certified or chartered by the appropriate licensing authority in the state or country in which the accountant is licensed, certified or chartered and that the accountant is a member in good standing of the American Institute of Certified Public Accountants.

     6. That the accountant is in compliance with the requirements for a qualified independent certified public accountant as set forth in NAC 680A.183.

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