Section 925.100  Notification of Adverse Financial Condition

a)         The insurer required to furnish the annual audited financial report shall require the accountant to report, in writing within 5 business days, to the board of directors  or its audit committee, any determination by the accountant that the insurer has materially misstated its financial condition as reported to the Director as of the balance sheet date currently under examination, or of any other determination that the insurer does not meet the minimum capital and surplus requirements of the Code and the net worth requirements of the Health Maintenance Organization Act and the Limited Health Service Organization Act, as of that date.

b)         An insurer who has received a report pursuant to subsection (a) above shall forward a copy of the report to the Director within 5 business days after receipt of such report and shall provide the accountant making the report with evidence of the report being furnished to the Director.  If the accountant fails to receive such evidence within the required 5 business day period, the accountant shall furnish to the Director a copy of the accountant's report within the next 5 business days.

c)         No accountant shall be liable in any manner to any person for any statement made in connection with subsections (a) and (b) above if such statement is made in good faith in compliance with subsections (a) and (b) above.

d)         If the accountant, subsequent to the date of the annual audited financial report filed pursuant to this Part, becomes aware of facts which might have affected the accountant's  report, the Director notes the obligation of the accountant to take such action as prescribed in Volume 1, Section AU561 of the Professional Standards of the American Institute of Certified Public Accountants as of June 1, 2003, with no later amendments or editions.

(Source:  Amended at 27 Ill. Reg. 16121, effective October 6, 2003)