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District of Columbia Code Division V. Local Business Affairs § 31-308. Notification of adverse financial condition.

Current as of January 01, 2024 | Updated by Findlaw Staff

(a)(1) The insurer required to furnish the annual audited financial report shall require the independent certified public accountant to report, in writing, within 5 business days to the board of directors or its audit committee any determination by the independent certified public accountant that, as of the balance sheet date currently under audit, the insurer:

(A) Has materially misstated its financial condition as reported to the Mayor;

(B) Does not meet the minimum capital and surplus requirement pursuant to § 31-2502.13 and § 31-4408; or

(C) Does not meet the minimum net worth requirements of § 31-3412.

(2) An insurer who has received a report pursuant to this subsection shall forward a copy of the report to the Mayor within 5 business days of receipt of the report and shall provide the independent certified public accountant making the report with evidence of the report being furnished to the Mayor. If the independent certified public accountant fails to receive the evidence within the required 5-business-day period, the independent certified public accountant shall furnish to the Mayor a copy of its report within the next 5 business days.

(b) No independent certified public accountant shall be liable in any manner to any person for any statement made in connection with subsection (a) of this section if the statement is made in good faith in compliance with subsection (a) of this section.

(c) If the accountant, subsequent to the date of the audited financial report filed pursuant to this chapter, becomes aware of facts which might have affected his report, the accountant shall take action prescribed in Volume 1, Section AU 561 of the Professional Standards of the American Institute of Certified Public Accountants.

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Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 31-308. Notification of adverse financial condition. - last updated January 01, 2024 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-31-308/

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