Examination Sound Practices

Sound Practices in various areas have been developed for Financial Examiners to utilize on their examinations and help facilitate the examination process.

Many of these practices originate from work performed directly by Examiners. Through the NAIC Peer Review process, examination files are submitted and are reviewed by the Examination team at the NAIC and Examiners from participating states. As part of this process, Sound Practices are often identified and shared to continue to enhance the quality and efficiency of examination work performed by states. Some of these practices may assist Examiners in applying guidance prescribed in the Financial Condition Examiners Handbook (Handbook).

Note that although these Sound Practices are intended to be consistent with Handbook guidance, none of the practices should be viewed as authoritative guidance. The Handbook should be consulted for further clarification as necessary.

Below are links to various documents and examples that Financial Examiners may find beneficial.

This page will be updated periodically as additional sound practices are identified. Please check back regularly for updates.

If you would like to recommend additional sound practices for consideration, please provide suggestions to Bailey Henning. 

General Sound Practices

• Required Sections of Handbook Guidance (last updated 10/8/2019)
  • This chart is a tool that may be used to assist examiners in identifying which elements within the Handbook are required to be completed as part of every examination.
• Sound Practices for Risk-Focused Financial Examinations (last updated August 2023) 
  • This document is an accumulation of sound practices in each area of the seven-phase examination process along with other resources and examples.