Insurers Given Guidance To Avoid ?Enron' Ills
NU Online News Service, Feb. 22, 11:43 a.m. EST?New York's top insurance regulator, reacting to the Enron accounting scandal, issued guidelines today requiring insurers to disclose when they have consulting contracts with firms that audit them.
Insurance Superintendent Gregory V. Serio said, "The Enron situation brought to the forefront the critical need" for certified public accountant firms that perform audits of company financial statements "to maintain independence and integrity.."
The department, he said, "is requiring insurers to disclose fees paid for all services, both audit and consulting work, performed by the CPA engaged to audit the insurers' financial statement."
Mr. Serio said the disclosures will allow "assessment of any potential conflict and will assist in safeguarding New York State consumers that rely on the solvency of insurers doing business in this state."
Details of the guidelines were contained in the department's Circular Letter No. 7.
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