A BILL to amend and reenact §33-33-1, §33-33-2, §33-33-3, §33-33-4, §33-33-5, §33-33-6, §33-33-8, §33-33-9, §33-33-10, §33-33-10a, §33-33-11, §33-33-12, §33-33-13, §33-33-14 and §33-33-15 of the Code of the West Virginia, 1931, as amended; and to amend said code by adding thereto a new section, designated §33-33-16, all relating to financial audits of insurers; defining terms; providing general requirements for filing annual audited financial reports; providing for creation of audit committee; requiring financial reports to include certain items; requiring the designation of an independent certified public accountant by insurers; providing requirements for the independent certified public accountants; prohibiting use of indemnification agreements by independent certified public accountants performing certain audits; permitting mediation or arbitration agreements in certain circumstances; requiring audit to be performed in accordance with generally accepted auditing standards; requiring independent certified public accountants to report adverse financial condition of insurers; requiring independent certified public accountants to report material weaknesses regarding internal control of insurers; requiring independent certified public accountants to provide letter of qualifications; requiring that workpapers of independent certified public accountants be available for review by Insurance Commissioner; providing for requirements of audit committee; requiring certain conduct of insurer regarding preparation of reports and documents; providing requirements for conducting financial audits of Canadian and British insurers; requiring report from insurers regarding internal control over financial reporting; providing exemptions; and providing effective dates of provisions.
(a) The commissioner may not recognize any person or firm as a qualified independent certified public accountant for purposes of performing the annual audited financial report if the person or firm:§33-33-6. Qualifications of independent certified public accountants.
§33-33-8. Scope of audit and report of independent certified public accountant.
(a) In addition to the annual audited financial§33-33-10. Communication of internal control related matters noted in an audit.
(a)§33-33-11. Definition, availability and maintenance of independent certified public accountant workpapers.
Prior Calendar Year Direct Written and Assumed Premiums | ||
$0-$300,000,000 | Over $300,000,000- $500,000,000 | Over $500,000,000 |
No minimum requirements. | Majority (50% or more) of members shall be independent. | Supermajority of members (75% or more) shall be independent. |
§33-33-13. Conduct of insurer in connection with the preparation of required reports and documents.
§33-33-15. Management's report of internal control over financial reporting.