Florida Auditor General Says Office of Insurance Regulation Documentation Insufficient on Property and Casualty Rate Filing Decisions
Sep 5, 2013
The Florida Auditor General (“AG”) published the results of its operational audit of the Florida Office of Insurance Regulation (“OIR”) on August 30, 2013.
To view the complete audit, click here.
The following conclusions were made:
Finding No. 1: OIR policies and procedures should be enhanced to require that the reasoning and judgments supporting property and casualty rate filing decisions be sufficiently documented.
Finding No. 2: The OIR did not use existing accounting codes to facilitate the preparation of, nor had the OIR prepared detailed analyses comparing regulatory costs to the regulatory fees and taxes designated to cover those costs.
Finding No. 3: Periodic information technology (“IT”) user access reviews had not been conducted by individuals knowledgeable of user roles and responsibilities. Additionally, OIR-specific procedures addressing OIR IT applications had not been developed.
Finding No. 4: The OIR had not obtained and reviewed in a timely manner the independent service auditor’s report related to the controls designed and established by the National Association of Insurance Commissioners for the database that maintains the property and casualty insurer financial information used by the OIR in its financial analyses processes.
The audit, which focused on Life and Health insurers’ forms review process and market investigations, also included a follow-up on the findings noted in the AG’s report No. 2011-181, as well as procedures to evaluate any OIR actions related to finding No. 1 of the AG’s 2012 report No. 2012-026, which stated that the Florida Department of Financial Services had not prepared detailed analyses comparing particular categories of regulatory costs to the revenues designated to cover those costs.
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