Texas Insurance Code - Section 401.020. Accountant Work Papers
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§ 401.020. ACCOUNTANT WORK PAPERS. (a) In this section,
"work papers" means the records kept by an accountant of the
procedures followed, the tests performed, the information
obtained, and the conclusions reached that are pertinent to the
accountant's audit of an insurer's or health maintenance
organization's financial statements. The term includes work
programs, analyses, memoranda, letters of confirmation and
representation, abstracts of company documents and schedules, and
commentaries prepared or obtained by the accountant in the course
of auditing the financial statements that support the accountant's
opinion.
(b) An insurer or health maintenance organization required
to file an audited financial report under this subchapter shall
require the insurer's or health maintenance organization's
accountant to make available for review by the department's
examiners the work papers and any record of communications between
the accountant and the insurer or health maintenance organization
relating to the accountant's audit that were prepared in conducting
the audit. The insurer or health maintenance organization shall
require that the accountant retain the work papers and records of
communications until the earlier of:
(1) the date the department files a report on the
examination covering the audit period; or
(2) the seventh anniversary of the date of the last day
of the audit period.
(c) The department may copy and retain the copies of
pertinent work papers when the department's examiners conduct a
review under Subsection (b). The review is considered an
investigation, and work papers obtained during that investigation
may be made confidential by the commissioner, unless the work
papers are admitted as evidence in a hearing before a governmental
agency or in a court.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 401.013 401.014 401.015 401.016 401.017 401.018 401.019 401.020 401.021 401.051 401.052 401.053 401.054 401.055 401.056
Last modified: August 10, 2007
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