Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 26.00 - Annual Financial Reporting For Years Ending 2010 And After
Section 26.07 - Designation of Independent Certified Public Accountant

Universal Citation: 211 MA Code of Regs 211.26
Current through Register 1531, September 27, 2024

Each insurer required by 211 CMR 26.00 to file an annual Audited financial report must within 60 days after becoming subject to such 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 set forth in 211 CMR 26.00 Insurers not retaining an independent certified public accountant on the effective date of 211 CMR 26.00 shall register the name and address of their retained independent certified public accountant not less than six months before the date when the first Audited financial report is to be filed. Insurers shall notify the Commissioner of the engagement of an accountant within 30 days of such appointment if such accountant was not the accountant for purposes of 211 CMR 26.00 for the immediately preceding year.

The insurer shall obtain a letter from the accountant, and file a copy with the Commissioner stating that the accountant is aware of the provisions of the insurance laws and regulations 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 Division, specifying such exceptions as he or she may believe appropriate.

If an accountant who was the accountant for the immediately preceding filed Audited financial report is dismissed or resigns, the insurer shall within five business days notify the Division of this event. The insurer also shall furnish the Commissioner with a separate letter within ten business days of the above notification stating whether in the 24 months preceding such event there were any disagreements with the former accountant on any matter of accounting principles or practice, financial statement disclosure, or auditing scope or procedure; which disagreements, if not resolved to the satisfaction of the former accountant, would have caused him or her to make reference to the subject matter of the disagreement in connection with his or her opinion. The disagreements required to be reported in response to 211 CMR 26.07 include both those resolved to the former accountant's satisfaction and those not resolved to the former accountant's satisfaction. Disagreements contemplated by 211 CMR 26.07 are those that occur at the decision making level, i.e., between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report. The insurer shall also in writing request the former accountant to 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 for which the accountant does not agree; and the insurer shall furnish such responsive letter from the former accountant to the Commissioner together with its own.

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