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Title: Section 98-3.5 - Designation of CPA

Effective Date


Section 98-3.5 Designation of CPA.

(a) Every MCO that files an annual audited financial report shall inform the Commissioner in writing of the name and address of the CPA retained to conduct the annual audit set forth in this Subpart. The MCO shall provide the name, address, telephone number and email address of its CPA to the Commissioner by March 1, 2015, and except as otherwise provided in this section, provide updated information within 60 days of any change in CPA thereafter.

(b) The MCO shall obtain a letter from the CPA, and file a copy with the Commissioner, stating that the CPA is aware of the provisions of the insurance law and the regulations thereunder of the state of domicile that relate to accounting and financial matters and affirming that the CPA 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 Department of Financial Services, specifying such exceptions as the CPA may believe appropriate.

(c) If the CPA is dismissed or resigns:

(1) The MCO shall notify the Commissioner within five business days of the event.

(2) The MCO shall submit a letter to the Commissioner within 15 business days of the event stating whether there were any disagreements at the decision-making level with the former CPA within the previous two years (whether or not resolved to the CPA’s satisfaction) on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that might or could have been referenced in the CPA’s opinion attached to the audited financial report and detailing with specificity the nature and extent of any such disagreements.

(3) The MCO shall submit, with the letter required by paragraph (2) of this subdivision, a letter from the former CPA to the Commissioner stating whether the CPA agrees with the statements contained in the MCO’s letter and, if not, stating the reasons for which the CPA does not agree.


VOLUME A-2 (Title 10)