The NAIC adopted changes to the Preamble of the NAIC Accounting Practices and Procedures Manual to require domiciliary state regulators to provide notification to all states in which a company is licensed when considering approval of a request for an accounting practice that departs from the Manual and state prescribed practices. This revision was approved by the NAIC Executive and Plenary Committees during the 2004 NAIC Winter National Meeting and became effective Jan. 1, 2005.
The NAIC is currently working to develop a new database within the NAIC Exam Tracking System (ETS) to assist states in complying with the permitted practice notification requirement. However, this ETS enhancement will not be available by Jan. 1, 2005. Although the ETS enhancements will not be complete, state regulators are required to comply with the permitted practice notification requirement detailed in the Manual’s Preamble.
In order to assist the states in complying with the notification requirement during the interim, the NAIC has identified the procedure each state should follow when communicating permitted practice requests. Additionally, the NAIC has provided preliminary information on determining the appropriate state contacts and the need to retain documentation for accreditation purposes.
Permitted Accounting Practice Notification [ Word ]
Additionally, the NAIC has established a directory of the state insurance department contacts that should receive permitted practice notifications. This list is available on NAIC StateNet at the following location: https://i-site.naic.org/ select StateNet. Under the Financial Regulatory Services Division, select the Permitted Accounting Practices Notification Contact List link. In addition to providing notification to the states in which the company is licensed, notification should be provided to the NAIC at perpract@naic.org.