Iowa: Iowa Admin Code r. 191-98.12 (CPA work papers)
Iowa Admin Code rr. 191-98.2(1), 191.98.16 (Internal audit function requirements)
Michigan: Mich. Comp. Laws § 500.1021 (CPA work papers) Mich. Comp. Laws § 500.1028 (Internal audit function requirements) Minnesota: Minn. Stat. § 60a.1291, subd. 14. (CPA work papers)
Minn. Stat. § 60a.1291, subd. 15a.. (Internal audit function requirements)
9. A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule and how any related findings support the regulatory approach chosen for the proposed rule:
Access to CPA work papers reduces the amount of information that OCI is required to obtain from insurers and aids in the efficient oversight of insurers. This small clarification to the definition of work papers will further aid OCI in efficiently regulating insurers. The small change to the internal audit function requirements will make clear that small insurers that are not part of group of insurers are eligible for an exemption from those requirements, which OCI believes is appropriate for smaller insurers.
10. Any analysis and supporting documentation that OCI used in support of OCI’s determination of the rule’s effect on small businesses under s. 227.114: This rule will have little or no effect on small businesses. Insurers will not be affected by the clarification of what constitutes CPA work papers. It will also be clearer that small insurers that are not part of a group of insurers are exempt from the internal audit function requirements and those associated costs.
11. A description of the Effect on Small Business:
This rule will have little or no effect on small businesses.
12. Agency contact person:
Phone: (608) 267-9586
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
13. Place where comments are to be submitted and deadline for submission:
Persons wishing to testify or provide oral or written comments regarding the proposed administrative rule may appear during the hearing. Additionally, the rule may be reviewed and comments made at https://docs.legis.wisconsin.gov/code or sent to the following: The deadline for submitting comments is 4:00 p.m. on Friday, December 9, 2022.
Written comments can be mailed or hand-delivered to:
Legal Unit - OCI Rule Comment for Rule Ins 50.01 and 50.155
Office of the Commissioner of Insurance
125 South Webster St – 2nd Floor
Madison WI 53703-3474
Rule Text:
SECTION 1. Ins 50.01 (9) is amended to read:
(9) “Work papers” means records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to the independent certified public accountant’s examination of the financial statements of an insurer. “Work papers” include, but are not limited to, audit planning documentation;, audit guides;, work programs;, analyses;, memoranda;, letters of confirmation and representation;, abstracts of company documents;, financial compilations, even if not produced during a full audit; and schedules or commentaries prepared or obtained by the independent certified public accountant in the course of examination of the financial statements of an insurer or which support the opinion of the independent certified public accountant regarding the financial statements.
SECTION 2. Ins 50.155 (1) is amended to read:
(1) An insurer is exempt from the requirements of this section if both of the following conditions are true:
(a) The insurer has total annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $500,000,000; and.
(b) The If the insurer is a member of a group of insurers, and the group has total annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums but excluding premiums reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, less than $1,000,000,000.
SECTION 3. EFFECTIVE DATE. The rule takes effect on the first day of the month following publication in the Wisconsin Administrative Register, as provided in s. 227.22 (2) (intro.), Stats. Section 1.
Section 2.
Rachel Cissne Carabell
Deputy Commissioner of Insurance
