NAC694C.226. Reporting of determination that insurer misstated its financial condition or does not meet minimum requirements for capital and surplus; procedure upon discovery of additional facts.

     1. An independent certified public accountant of a captive insurer required to furnish an annual audited financial report shall report to the board of directors or audit committee of the captive insurer each determination by the accountant that the captive insurer:

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

     (b) Does not, as of that date, meet the minimum requirements for capital and surplus as set forth in chapter 694C of NRS.

Ê The report must be in writing and provided to the captive insurer not later than 5 business days after the accountant makes such a determination.

     2. A captive insurer who receives a report from its independent certified public accountant pursuant to this section shall, not later than 5 business days after the date on which it receives the report from the accountant:

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

     (b) Provide the independent certified public accountant who made the report with evidence that the captive insurer has forwarded a copy of the report to the Commissioner. If the independent certified public accountant does not, within the 5-business-day period, receive evidence from the captive insurer that the captive insurer has forwarded a copy of the report to the Commissioner in accordance with this section, the independent certified public accountant shall file with the Commissioner a copy of its report within the next 5 business days.

     3. If the independent certified public accountant, after the annual audited financial report reviewed by the accountant has been filed pursuant to NRS 694C.400 and NAC 694C.200 and 694C.210, becomes aware of any facts which affect his or her report, the accountant shall take such action as prescribed in Volume 1, Section AU 561 of the AICPA Professional Standards, which is adopted by reference in NAC 694C.090.

     (Added to NAC by Comm’r of Insurance by R064-06, eff. 9-18-2006)