Accountants and insurers continue to ponder the definition of “independent certified public accountant” included in a proposed financial reporting model regulation.[@@]
The National Association of Insurance Commissioners, Kansas City, Mo., has been working on the model, which would require insurers over a certain size to provide annual audited financial reports, for months. The model would, in effect, require large and midsize insurers to comply with the Section 404 accounting provisions of the federal Sarbanes-Oxley Act of 2002.
SOX applies only to publicly traded stock companies. The NAIC model would cover mutual insurers and privately held insurers with stock company charters.
Financial reporting model issues coming up in discussions this week include questions about accounting firm employees who get jobs at life insurance companies.