Page 29 - Representation & Warranties Insurance

Role of the Practitioner

• Assistance in insurer’s evaluation of a claim. Upon • Settlement negotiations. If the insurer does not
receiving a claim notice, insurers often request services agree to pay the claim in full, the parties may ask their
from accountants. In providing such assistance, a respective accountants to participate in a potential
practitioner may do the following: settlement process. In such processes, a practitioner
may do the following:
– Prepare a list of documents to request to assist the
insurer in evaluating the claim. Depending on the – Continue to gather information regarding their client’s
circumstances and the nature of the claim, the insurer position and the opposing party’s position
may request information such as internal financial
statements or accounting records; investment – Present analyses to the opposing party or its
memos or valuation models; due diligence reports; accountants
audit working papers; or emails or correspondence – Present information to a neutral mediator
relevant to the claim
• Arbitration or litigation (consultant or testifying
– Review documentation and hold discussions with expert). If the parties are unable to settle the matter,
the insured’s accountants to document any pertinent they may have their accountants provide services to
basis for the insured’s claim them in arbitration or litigation. In such settings, a party

– Provide an analysis of elements of the claim or loss may engage a practitioner either as a consultant or as
calculation with respect to GAAP or other applicable a testifying expert. The practitioner should be aware
accounting standards of the requirements for providing either type of service
under the AICPA’s standards and under applicable
requirements of the governing jurisdiction.

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