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Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
Filings Made Easy for Life, Health and Licensing
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Filings Made Easy for Life, Health and Licensing

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  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Additional characteristics of Lead-States: Physical location of the main corporate offices or largest operational offices of the group Expertise in the area of concern and experience of staff in like situations State whose regulatory requirements have driven the design of the organization’s infrastructure
  • Transcript

    • 1.  
    • 2. Filings Made Easy for Life, Health and Licensing Financial Examinations – IT Examinations and Examination Reports
    • 3. Presenters <ul><li>Tony Trevino, CFE </li></ul><ul><li>Chief Examiner </li></ul><ul><li>Examinations </li></ul><ul><li>[email_address] </li></ul><ul><li>Linda Hytry, CFE </li></ul><ul><li>Assistant Chief Examiner – AES </li></ul><ul><li>[email_address] </li></ul><ul><li>Jamie Walker, CFE </li></ul><ul><li>Assistant Chief Examiner </li></ul><ul><li>[email_address] </li></ul>
    • 4. Discussion topics <ul><li>Overview of Financial Program </li></ul><ul><li>Overview of Examinations </li></ul><ul><li>IT Examinations and Examination Tools </li></ul><ul><li>Examination Reports </li></ul><ul><li>Questions </li></ul>
    • 5. Overview of Financial Program Danny Saenz, CFE Senior Associate Commissioner Financial Program Godwin Ohaechesi CFE Director - Company Licensing &amp; Registration Mike Boerner ASA, MAAA Managing Actuary Doug Slape CFE, CISA Chief Financial Analyst Financial Analysis Tony Trevino CPA, CFE Chief Examiner Examinations Angel Garrett CPA, CFE Director - Rehabilitation and Liquidation Oversight
    • 6. Overview of Financial Program, continued <ul><li>Cradle to Grave Approach </li></ul><ul><li>Company Licensing and Registration </li></ul><ul><li>Actuarial </li></ul><ul><li>Financial Analysis </li></ul><ul><li>Financial Examinations </li></ul><ul><li>Rehabilitation and Liquidation Oversight </li></ul>
    • 7. Overview of Financial Program, continued <ul><li>Serves as the primary solvency guardian for policyholders </li></ul><ul><li>Seeks to detect financial concerns early and take prompt action by applying available statutes, rules and procedures to prevent insolvency and consumer problems </li></ul><ul><li>Priorities focus on “firm, fair, effective, and efficient” regulation for all insurance entities, while reducing impediments to competition </li></ul>
    • 8. Overview of Examinations David Moskowitz CFE Assistant Chief Examiner Market Conduct Linda Hytry, CFE Assistant Chief Examiner AES Zeke Ramirez, CFE, CPA Assistant Chief Examiner Financial - Central Ignatius Wheeler, CFE Assistant Chief Examiner Financial - South John Villarreal, CFE Assistant Chief Examiner Financial - North Jamie Walker, CFE Assistant Chief Examiner Examination Reports Tony Trevino CPA, AFE Chief Examiner
    • 9. Examinations Key Processes <ul><li>On-site examinations of the books, records, and operations of insurance companies and other entities </li></ul><ul><li>Financial examinations </li></ul><ul><li>Market conduct examinations </li></ul><ul><li>Analysis of annual operations reports filed by premium finance companies </li></ul>
    • 10. Examinations Key Processes continued <ul><li>Target examinations “as needed” in response to potential regulatory concerns </li></ul><ul><ul><li>Other entities subject to examination include: </li></ul></ul><ul><ul><ul><li>Guaranty Fund Associations </li></ul></ul></ul><ul><ul><ul><li>Premium Finance Companies </li></ul></ul></ul><ul><ul><ul><li>Reinsurance Intermediaries </li></ul></ul></ul><ul><ul><ul><li>Managing General Agents </li></ul></ul></ul>
    • 11. Examinations Coordination with Other States <ul><li>Lead State </li></ul><ul><ul><li>Allocation of work-load </li></ul></ul><ul><ul><li>Clear understanding regarding each state’s role and needs </li></ul></ul><ul><ul><li>Sharing of work papers and findings </li></ul></ul>
    • 12. Examinations Coordination with Other States continued <ul><li>Characteristics of Lead States: </li></ul><ul><ul><li>State with the largest number of domestic insurance companies in the group </li></ul></ul><ul><ul><li>State with large or largest premium volume or exposure </li></ul></ul><ul><ul><li>Domiciliary state of top-tiered insurance company </li></ul></ul>
    • 13. Risk Focused Examinations <ul><li>Provides clearer methodology for assessing residual risk </li></ul><ul><li>Allows the assessment of risk management processes other than those that result in financial statement line item verifications </li></ul>
    • 14. Texas Policy and Procedures Manual <ul><li>Procedures and regulations unique to Texas </li></ul><ul><ul><li>Texas statutes and rules take precedence </li></ul></ul>
    • 15. <ul><li>IT EXAMINATIONS </li></ul>
    • 16. IT Examinations Linda Hytry Assistant Chief Examiner Brian McComack Systems Analyst (Austin) Mike Montgomery Systems Analyst (Austin) Kurt Ruzicka Exam Coordinator (Austin) Terry Smith Senior IS Examiner (Dallas) Tommy Fong IS Examiner (Houston) Turner Jones IS Examiner (Houston) James Boggs IS Examiner (Austin) Sandra Mendez IS Examiner (Austin) Eric Kameda IS Examiner (Austin) Vacant IS Examiner (Dallas)
    • 17. IS Examiner/System Analyst/Examination Coordinator <ul><li>Staff </li></ul><ul><ul><li>Examinations Coordinator </li></ul></ul><ul><ul><li>IS Examiners (6) </li></ul></ul><ul><ul><li>System Analysts (2) </li></ul></ul><ul><li>Examination Coordinator </li></ul><ul><ul><li>Initial request for information </li></ul></ul><ul><ul><ul><li>part of the pre-planning for an examination </li></ul></ul></ul><ul><ul><ul><li>slightly different for large/small companies for information requested </li></ul></ul></ul>
    • 18. IS Examiner/System Analyst/Examination Coordinator continued <ul><li>IS Examiner </li></ul><ul><ul><li>Support for Financial Examiner </li></ul></ul><ul><ul><li>IS Control Review </li></ul></ul><ul><ul><li>ISQ Desk Review </li></ul></ul><ul><li>System Analyst </li></ul><ul><ul><li>Reconciliation of databases (premiums, losses) </li></ul></ul><ul><ul><li>Sample section utilizing Audit Command Language (ACL) </li></ul></ul>
    • 19. Examination Tools <ul><li>ACL </li></ul><ul><ul><li>Software </li></ul></ul><ul><ul><li>Premium/Loss database requests </li></ul></ul><ul><ul><li>Independent testing and sample selection </li></ul></ul><ul><li>TeamMate </li></ul><ul><ul><li>Electronic work papers </li></ul></ul><ul><ul><li>Enhance regulatory insurance examinations </li></ul></ul><ul><ul><li>Central repository for standard examination procedures </li></ul></ul><ul><ul><li>Work papers can be shared/assessed </li></ul></ul><ul><ul><li>NAIC Citrix Server for Lead State Examinations </li></ul></ul>
    • 20. <ul><ul><li>REPORT PROCESSING </li></ul></ul>
    • 21. Report Contents <ul><li>Comprised of: </li></ul><ul><ul><li>Description of company operations </li></ul></ul><ul><ul><li>Financial statements </li></ul></ul><ul><li>Significant Deficiencies: </li></ul><ul><ul><li>Disclosed in the body of the report </li></ul></ul><ul><ul><li>Uncorrected deficiencies are accumulated in the “Summary of Significant Findings” </li></ul></ul>
    • 22. Report Contents continued <ul><li>Examination Report Comments </li></ul><ul><ul><li>Report activities that are contrary to the Insurance Code, Administrative Code, or SSAP guidance. </li></ul></ul><ul><li>Management Letter Comments </li></ul><ul><ul><li>Disclose items that are not substantive, material, or of major regulatory concern. </li></ul></ul>
    • 23. Report Processing <ul><li>Workpapers transmitted to Austin </li></ul><ul><li>One additional review of the report </li></ul><ul><li>Signed by the Examiner-in-Charge </li></ul><ul><li>Final Report transmitted to the Insurance Company </li></ul>
    • 24. Company Receives Report <ul><li>Initiating the Appeal Process </li></ul><ul><ul><li>Governed by 28 TAC § 7.83 </li></ul></ul><ul><li>Adoption of the Report </li></ul><ul><ul><li>15 days after report is received, if not appealed </li></ul></ul><ul><li>Response to Report Deficiencies </li></ul>
    • 25. QUESTIONS?

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