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The Pennsylvania Code website reflects the Pennsylvania Code changes effective through 54 Pa.B. 1806 (March 30, 2024).

31 Pa. Code § 147.6b. Conduct of insurer relating to audits.

§ 147.6b. Conduct of insurer relating to audits.

 (a)  When communicating with any accountant relating to an audit, review or communication required under this chapter, an officer or director of an insurer may not directly or indirectly:

   (1)  Make or cause to be made a materially false or misleading statement.

   (2)  Omit or cause another person to omit any material fact necessary to make statements made, in light of the circumstances under which the statements are made, not misleading.

 (b)  An officer or director of an insurer or any other person acting under the direction thereof, may not, directly or indirectly take any action to coerce, manipulate, mislead or fraudulently influence an accountant performing an audit under this chapter if he knows or should have known that the action, if successful, could render the insurer’s financial statements materially misleading.

 (c)  For purposes of subsection (b), actions that could render an insurer’s financial statements materially misleading include, but are not limited to, actions which would result in the accountant:

   (1)  Issuing or reissuing a report on an insurer’s financial statements that materially violates statutory accounting principles prescribed by the Commissioner, generally accepted auditing standards, or other professional or regulatory standards.

   (2)  Failing to perform an audit, review or other procedures required by generally accepted auditing standards or other professional standards.

   (3)  Failing to comply with §  147.9(d) (relating to notification of adverse financial condition).

   (4)  Failing to communicate matters to an insurer’s audit committee.

   (5)  Violating any provision of this chapter.


   The provisions of this §  147.6b issued under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S. § §  66, 186, 411 and 412); sections 320, 630, 1007 and 2452 of The Insurance Company Law of 1921 (40 P.S. § §  443, 764a, 967 and 991.2452); sections 205 and 206 of The Pennsylvania Fair Plan Act (40 P.S. § §  1600.205—1600.206); section 731 of the Medical Care Availability and Reduction of Error (MCARE) Act (40 P.S. §  1303.731); 40 Pa.C.S. § §  6125, 6331 and 6701; sections 11 and 14 of the Health Maintenance Organization Act (40 P.S. § §  1561 and 1564); and sections 7 and 25 of the Continuing-Care Provider Registration and Disclosure Act (40 P.S. § §  3207 and 3225).


   The provisions of this §  147.6b adopted October 2, 2009, effective October 3, 2009, 39 Pa.B. 5730.

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