BULLETIN B 02-05
TO: ALASKA DOMESTIC INSURANCE COMPANIES AND OTHER INTERESTED
RE: RESTRICTIONS ON NUMBER OF CONSECUTIVE YEARS AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT MAY RENDER AN ANNUAL AUDITED FINANCIAL
REPORT OF AN INSURANCE COMPANY OR ITS INSURANCE SUBSIDIARIES OR
The Annual Statement Instructions for property and casualty insurers
and also for health insurers issued by the National Association
of Insurance Commissioners (P/C 2001, page 43; H 2001, page 11),
with respect to the qualifications of independent certified public
accountants, states in part:
No partner or other person responsible for rendering a report
may act in that capacity for more than seven (7) consecutive
years. Following any period of service, such person shall be
disqualified from acting in that or a similar capacity for the
same company or its insurance subsidiaries or affiliates for
a period of two (2) years. An insurer may make application to
the domiciliary Commissioner for relief from the above rotation
requirement on the basis of unusual circumstances. The domiciliary
Commissioner may consider the following factors in determining
if the relief should be granted: (1) number of partners, expertise
of the partners or the number of insurance clients in the currently
registered firm; (2) premium volume of the insurer; or (3) number
of jurisdictions in which the insurer transacts business.
Under AS 21.09.200, the Division of Insurance requires insurers
to use the above-referenced instructions. The restriction in the
NAIC Annual Statement Instructions regarding the consecutive number
of years an independent certified public accountant may render an
audited financial report to the Division of Insurance is effective
for years beginning after December 31, 1992.
Please contact the Financial Examination Section at (907) 269-7900
if you have any questions about this bulletin.
Dated this 13th day of March 2002, at Anchorage, Alaska.