NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205)
Sections 14, 15 and 16: audit committee, internal audit function and conduct of the insurer towards the auditor – NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205)

NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205) mdl205-s14-independence: Meet the audit committee independence thresholds: a majority above three hundred million dollars of premium, three quarters above five hundred million

What does mdl205-s14-independence require?

A committee member is independent only if, apart from committee and board service, he or she takes no consulting, advisory or other paid engagement from the entity and is not affiliated with it or any subsidiary; where law requires participation by otherwise non-independent members they may serve and be designated independent unless they are officers or employees of the insurer or an affiliate. The required proportion of independent members depends on the previous calendar year's direct and assumed premium (direct plus unaffiliated assumed): no minimum up to three hundred million dollars, a majority above three hundred million up to five hundred million, and at least three quarters above five hundred million. A member who loses independence for reasons outside his or her control may stay on, with notice to the State, until the next annual meeting or for one year, whichever comes first. The commissioner may require improved independence for an insurer in a risk-based capital action level event or in hazardous financial condition, and insurers under five hundred million dollars may apply for a hardship waiver, filed with the annual statement in each State and with the NAIC.

Maintained by Gerard Blokdyk

Other controls in Sections 14, 15 and 16: audit committee, internal audit function and conduct of the insurer towards the auditor – NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205)

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