NAIC Annual Financial Reporting Model Regulation (Model Audit Rule, MDL-205) mdl205-s7ijk-preapproval: The audit committee pre-approves all audit and non-audit services, subject to the SOX and five-per-cent de minimis waivers

Other non-audit services, including tax work, that are not on the prohibited list and do not offend the independence principles may be provided only if the audit committee approves them in advance. Every audit and non-audit service from the insurer's accountant needs the committee's advance approval, unless the insurer is itself SOX compliant or wholly owned by a SOX compliant parent, or the three de minimis conditions are met together: the non-audit fees are at most five per cent of total fees paid to the accountant that fiscal year, the services were not recognised as non-audit services when engaged, and they are promptly brought to the committee and approved before the audit is completed. The committee may delegate pre-approval to designated members, whose decisions are reported to the full committee at each scheduled meeting.