Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) voted to amend its Model Regulation Requiring Annual Audited Financial Reports, commonly known as the Model Audit Rule. The amendments relate to auditor independence, corporate governance, and internal control over financial reporting.

The adopted revisions require that insurance companies have an audit committee and indicate that some audit committee members may need to be independent from management. The adopted revisions also require that insurance companies with $500 million or more in direct and assumed premium file a report with the state insurance department regarding its assessment of internal control over financial reporting. The scheduled effective date is January 1, 2010, notes Kansas City, Mo.-based NAIC.

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