Section 500.1029 - Director or officer of insurer; prohibited conduct.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.1029 Director or officer of insurer; prohibited conduct.
Sec. 1029.
(1) A director or officer of an insurer shall not directly or indirectly do either of the following:
(a) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under this chapter.
(b) Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review, or communication required under this chapter.
(2) A director or officer of an insurer, or any other person acting under the direction thereof, shall not directly or indirectly take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit under this chapter if that person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading. Actions that, if successful, could result in rendering the insurer's financial statements materially misleading include, but are not limited to, actions taken at any time with respect to the professional engagement period to coerce, manipulate, mislead, or fraudulently influence an accountant to do any of the following:
(a) To issue or reissue a report on an insurer's financial statements that is not warranted under the circumstances due to material violations of statutory accounting principles prescribed by the commissioner, generally accepted auditing standards, or other professional or regulatory standards.
(b) Not to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards.
(c) Not to withdraw an issued report.
(d) Not to communicate matters to an insurer's audit committee.
History: Add. 2008, Act 342, Imd. Eff. Dec. 23, 2008
Popular Name: Act 218