Section 130. Accountant's letter of qualifications

The accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual Audited Financial Report, a letter stating:

1. That the accountant is independent with respect to the insurer and conforms to the standards of his profession as contained in the AICPA's Code of Professional Conduct and pronouncements of its Financial Accounting Standards Board, and the Standards of Practice of the Virginia Board for Accountancy, or similar code.

2. The background and experience in general, and the experience in audits of insurers of the staff assigned to the engagement and whether each is an accountant. Nothing within this chapter shall be construed as prohibiting the accountant from utilizing staff as deemed appropriate where such use is consistent with the standards prescribed by generally accepted auditing standards.

3. That the accountant understands the annual Audited Financial Report, and that its opinion thereon will be filed in compliance with this chapter and that the commission will be relying on this information in the monitoring and regulation of the financial position of insurers.

4. That the accountant consents to the requirements of 14VAC5-270-140 and that the accountant consents and agrees to make available for review by the commission, its designee or appointed agent, the workpapers, as defined in 14VAC5-270-40.

5. That the accountant is properly licensed by an appropriate state licensing authority and that he is a member in good standing in the AICPA.

6. That the accountant is in compliance with 14VAC5-270-80.

Historical Notes

Derived from Regulation 39, Case No. INS910072, § 14, eff. September 1, 1991; amended, Volume 24, Issue 12, eff. January 1, 2010.

Statutory Authority

§§ 12.1-13 and 38.2-223 of the Code of Virginia.