Section 694C.235 - Procedure upon dismissal or resignation of independent certified public accountant1. If the independent certified public accountant who was the accountant for the most recent filing of the annual audited financial report of a captive insurer is dismissed or resigns, the captive insurer shall: (a) Not later than 5 business days after the dismissal or resignation, notify the Commissioner of the dismissal or resignation; and(b) Not later than 10 business days after notifying the Commissioner of the dismissal or resignation of the accountant, file with the Commissioner a separate letter which sets forth:(1) Each disagreement which occurred during the 24 months immediately preceding the dismissal or resignation between the accountant and the captive insurer on any matter of accounting principles or practices, disclosure on a financial statement or the scope or procedure of the audit; and(2) Which disagreements, if not resolved to the satisfaction of the accountant, caused him or her to make a reference to the subject matter of the disagreement in his or her opinion filed with the annual audited financial report of the captive insurer.2. The disagreements required to be reported pursuant to this section include both those resolved to the former accountant's satisfaction and those which have not been resolved to the former accountant's satisfaction.3. The captive insurer shall request in writing that the former accountant furnish a letter addressed to the captive insurer stating whether the accountant agrees with the statements contained in the captive insurer's letter filed pursuant to subsection 1 and, if not, stating the reasons he or she does not agree.4. Upon receipt of the accountant's response letter, the captive insurer shall file with the Commissioner a copy of the response letter from the former accountant and any written response of the captive insurer to the accountant's response letter.5. For the purposes of this section, a disagreement between the captive insurer and its accountant is a disagreement which occurs between the captive insurer and the accountant at the decision-making level and includes, without limitation, a disagreement between the personnel of the captive insurer responsible for preparation of the financial statements of the captive insurer and the personnel of the independent certified public accountant responsible for rendering its opinion on those statements.Nev. Admin. Code § 694C.235
Added to NAC by Comm'r of Insurance by R064-06, eff. 9-18-2006NRS 679B.130, 694C.170, 694C.400