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In its quarterly meeting last month in Washington, D.C., the National Association of Insurance Commissioners (NAIC) approved the proposed changes to the Model Regulation Requiring Annual Audited Financial Reports, more commonly known as the Model Audit Rule (MAR). The MAR will now be subject to state adoption. Following a state's adoption of the MAR, most of the new rules will be effective for companies reporting in that state for the reporting period beginning January 1, 2010.
The version of the MAR adopted by the NAIC includes the most recent changes adopted by the NAIC (E) Commitee, particularly the $300 million direct premium threshold beyond which an insurance company's audit committee must include "independent" directors. The Title IV Subgroup of the NAIC/AICPA Working Group is continuing its work on the Model Audit Rule Implementation Guide, and released a revised draft on June 7, 2006.
A new section has been developed on the MMM Web site to serve as a clearinghouse for information related to the MAR. Please visit the new site at www.mmmlaw.com/naic for a copy of the final version of the MAR, the revised draft implementation guide and other related materials.
For additional information, please contact:
Ward S. Bondurant, Partner L. Chris Petersen, Partner Anthony C. Roehl, Associate
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