Ins 50.07(4)(4) If an independent certified public accountant for the immediately preceding filed audited financial report of an insurer is dismissed or resigns, the insurer shall comply with all of the following: Ins 50.07(4)(a)(a) The insurer shall within 5 business days notify the commissioner of the dismissal or resignation. Ins 50.07(4)(b)(b) The insurer shall within 15 business days furnish the commissioner with a letter which clearly states that there was no disagreement required to be disclosed under this paragraph or which describes any disagreement between the insurer and the independent certified public accountant in the 24 months preceding the dismissal or resignation, which: Ins 50.07(4)(b)1.1. Was on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure; and Ins 50.07(4)(b)2.2. Would require the independent certified public accountant to make reference to the subject matter of the disagreement in connection with the opinion required under s. Ins 50.06. The requirement to provide a description applies regardless of whether the disagreement was resolved or whether the former independent certified public accountant was satisfied with the resolution. Ins 50.07(4)(c)(c) The insurer shall within 15 business days furnish the commissioner with a letter from the independent certified public accountant addressed to the insurer stating whether the independent certified public accountant agrees with the statements contained in the insurer’s letter required under par. (b) and, if not, stating the reasons why not. Ins 50.07 HistoryHistory: Cr. Register, July, 1993, No. 451, eff. 8-1-93. Ins 50.08Ins 50.08 Qualifications of independent certified public accountants. Ins 50.08(1)(1) The commissioner may rule that an accountant or accounting firm is not qualified for purposes of expressing an opinion on the financial statements in the annual audited financial report required under this subchapter and prohibit insurers from retaining the accountant or an accounting firm, and require insurers to replace the accountant or accounting firm, if the commissioner finds there is cause, including, but not limited to, a finding that the accountant or accounting firm: Ins 50.08(1)(a)(a) Is not in good standing with the American institute of certified public accountants and in all states in which the accountant or accounting firm is, or is required to be, licensed to practice, or, for a Canadian or British company, that it is not a chartered accountant; Ins 50.08(1)(am)(am) Has either directly or indirectly entered into an agreement of indemnification with respect to the audit of the insurer; Ins 50.08(1)(b)(b) Has not conformed to the standards of the accounting profession as contained in the code of professional ethics of the American institute of certified public accountants and rules and regulations and code of ethics and rules of professional conduct of the accounting examining board, or a similar code; Ins 50.08(1)(c)(c) Has been convicted of fraud, bribery, a violation of the Racketeer Influenced and Corrupt Organizations Act, 18 USC 1961 to 1968, or any dishonest conduct or practices under federal or state law; Ins 50.08(1)(d)(d) Has been found to have violated the insurance laws or rules of this state; or Ins 50.08(1)(e)(e) Has demonstrated a pattern or practice of failing to detect or disclose material information in financial reports. Ins 50.08(2)(2) After December 31, 1994, and prior to January 1, 2010, no accounting firm partner or other person responsible for rendering a report required of an independent certified public accountant may act in that capacity for more than 7 consecutive years. Following any period of service such a 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 2 years. Effective January 1, 2010, the lead or coordinating audit partner having primary responsibility for the audit may not act in that capacity for more than 5 consecutive years, including consecutive years immediately preceding January 1, 2010, and 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 5 consecutive years. An insurer may make application to the commissioner for relief from the rotation requirement on the basis of unusual circumstances. The application should be made at least thirty days before the end of the calendar year. Factors the commissioner may consider in determining if the relief should be granted include, but are not limited to: Ins 50.08(2)(a)(a) Number of partners, expertise of the partners or the number of insurance clients in the currently registered firm; Ins 50.08(2)(c)(c) Number of jurisdictions in which the insurer transacts business. Ins 50.08(3)(3) The insurer shall file with its annual statement filing the approval for relief from sub. (2) with the states that it is licensed in or doing business in and with the NAIC. If the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic format acceptable to the NAIC. Ins 50.08(4)(a)(a) The commissioner shall not recognize as a qualified independent certified public accountant a person who, or accept an annual audited financial report prepared in whole or in part by a person who, provides to an insurer, contemporaneously with the audit, the following non-audit services: Ins 50.08(4)(a)1.1. Bookkeeping or other services related to the accounting records or financial statements of the insurer. Ins 50.08(4)(a)3.3. Appraisal or valuation services, fairness opinions, or contribution in-kind reports. Ins 50.08(4)(a)4.4. Actuarially-oriented advisory services involving the determination of amounts reported in the financial statements. The accountant may assist an insurer in understanding the methods, assumptions and inputs used in the determination of amounts recorded in the financial statement only if it is reasonable to conclude that the services provided will not be subject to audit procedures during an audit of the insurer’s financial statements. An accountant’s actuary may also issue an actuarial opinion or certification “opinion” on an insurer’s reserves if the following conditions have been met: Ins 50.08(4)(a)4.a.a. Neither the accountant nor the accountant’s actuary has performed any management functions or made any management decisions; Ins 50.08(4)(a)4.b.b. The insurer has competent personnel, or engages a third party actuary, to estimate the reserves for which management takes responsibility; and Ins 50.08(4)(a)4.c.c. The accountant’s actuary tests the reasonableness of the reserves after the insurer’s management has determined the amount of the reserves;