Ga. Comp. R. & Regs. R. 120-2-60-.15 - Internal Audit Function Requirements
(1) Exemption - An insurer is exempt from the
requirements of this section if:
(a) The
insurer has annual direct written and unaffiliated assumed premium, including
international direct and assumed premium but excluding premiums reinsured with
the Federal Crop Insurance Corporation and Federal Flood Program, less than
$500,000,000; and,
(b) If the
insurer is a member of a group of insurers, the group has annual direct written
and unaffiliated assumed premium including international direct and assumed
premium, but excluding premiums reinsured with the Federal Crop Insurance
Corporation and Federal Flood Program, less than $1,000,000,000.
(2) Function - The insurer or
group of insurers shall establish an internal audit function providing
independent, objective and reasonable assurance to the Audit committee and
insurer management regarding the insurer's governance, risk management and
internal controls. This assurance shall be provided by performing general and
specific audits, reviews and tests and by employing other techniques deemed
necessary to protect assets, evaluate control effectiveness and efficiency, and
evaluate compliance with policies and regulations.
(3) Independence - In order to ensure that
internal auditors remain objective, the internal audit function must be
organizationally independent. Specifically, the internal audit function will
not defer ultimate judgment on audit matters to others, and shall appoint an
individual to head the internal audit function who will have direct and
unrestricted access to the board of directors. Organizational independence does
not preclude dual-reporting relationships.
(4) Reporting - The head of the internal
audit function shall report to the audit committee regularly, but no less than
annually, on the periodic audit plan, factors that may adversely impact the
internal audit function's independence or effectiveness, material findings from
completed audits and the appropriateness of corrective actions implemented by
management as a result of audit findings.
(5) Additional Requirements - If an insurer
is a member of an insurance holding company system or included in a group of
insurers, the insurer may satisfy the internal audit function requirements set
forth in this section at the ultimate controlling parent level, an intermediate
holding company level or the individual legal entity level.
Notes
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