Authority: IC 27-1-3-7

Affected: IC 27-1-3.5

Sec. 14. (a) No director or officer of an insurer shall, directly or indirectly:

1. (1) make or cause to be made a materially false or misleading statement to an accountant in connection with any:

   1. (A) audit;
   2. (B) review; or
   3. (C) communication;
2. required under this rule; or

3. (2) 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:

   1. (A) audit;
   2. (B) review; or
   3. (C) communication;
4. required under this rule.

(b) No officer or director of an insurer, or any other person acting under the direction thereof, shall directly or indirectly take any action to:

1. (1) coerce;
2. (2) manipulate;
3. (3) mislead; or
4. (4) fraudulently influence;

any accountant engaged in the performance of an audit under this rule if that person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading.

(c) For purposes of subsection (b), 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:

1. (1) to issue or reissue a report on an insurer's financial statements that is not warranted in the circumstances, due to material violations of statutory accounting principles prescribed by:

   1. (A) the commissioner;
   2. (B) generally accepted auditing standards; or
   3. (C) other professional or regulatory standards;
2. (2) not to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards;
3. (3) not to withdraw an issued report; or
4. (4) not to communicate matters to an insurer's audit committee.

(Department of Insurance; 760 IAC 1-78-14; filed Oct 27, 2009, 2:52 p.m.: 20091125-IR-760090376FRA; readopted filed Nov 20, 2015, 9:25 a.m.: 20151216-IR-760150341RFA; readopted filed Nov 15, 2021, 8:32 a.m.: 20211215-IR-760210419RFA; readopted filed Oct 22, 2025, 3:17 p.m.: 20251119-IR-760240637RFA)