(a) An insurer is exempt from the requirements of this section if:
(1) 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 million; and
(2) 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 billion.
(b) 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 insurers 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.
(c) In order to ensure that internal auditors remain objective, the internal audit function must be organizationally independent. Specifically, the internal audit function may 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.
(d) 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 functions independence or effectiveness, material findings from completed audits and the appropriateness of corrective actions implemented by management as a result of audit findings.
(e) 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.
Structure West Virginia Code
Article 33. Annual Audited Financial Report
§33-33-1. Declaration of Policy and Purpose
§33-33-4. Contents of Annual Audited Financial Report
§33-33-5. Designation of Independent Certified Public Accountant
§33-33-6. Qualifications of Independent Certified Public Accountants
§33-33-7. Consolidated or Combined Audits
§33-33-8. Scope of Audit and Report of Independent Certified Public Accountant
§33-33-9. Notification of Adverse Financial Condition
§33-33-10. Communication of Internal Control Related Matters Noted in an Audit
§33-33-10a. Accountant's Letter of Qualifications
§33-33-12. Requirements for Audit Committees
§33-33-12a. Internal Audit Function Requirements
§33-33-13. Conduct of Insurer in Connection With the Preparation of Required Reports and Documents
§33-33-14. Canadian and British Companies
§33-33-15. Management's Report of Internal Control Over Financial Reporting