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ARTICLE · 12 NOVEMBER 2009

The NAIC’s New Model Audit Rule: Is Your Organization Ready?

On January 1, 2010, the National Association of Insurance Commissioners (“NAIC”) 2006 amendments to its model regulation governing the submission of audited statutory financial statements by insurance companies, commonly known as the Model Audit Rule, will go into effect.

United StatesInsurance
B. Scott Burton
B. Scott Burton

Originally published October 29, 2009

On January 1, 2010, the National Association of Insurance Commissioners ("NAIC") 2006 amendments to its model regulation1 governing the submission of audited statutory financial statements by insurance companies, commonly known as the Model Audit Rule, will go into effect.2 The revised Model Audit Rule incorporates significant new requirements in six related areas:

  • Audit committee composition, independence, and duties;
  • Lead audit partner rotation;
  • Requirements regarding pre-approval of audit services and prohibited non-audit services;
  • Conduct of the insurer in connection with the audit;
  • Management's report on internal controls over financial reporting; and

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