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Financial Examination Tools Sound Practices
Financial Examination Tools

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 Miguel Romero.

NOTE: The Financial Examination unit is in the process of updating the resources available on this page. See the 'last updated' dates associated with the Sound Practices below:

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.

Addressing Risks

Working with Third-Parties

  • Sound Practices in Documenting Reliance on Audit Workpapers (last updated 2/10/15)
  • Agenda for Pre-Exam Meeting with External Auditor (last updated 6/10/14)
    • This template was provided by the North Carolina Department of Insurance as an example of possible questions to address when meeting with the external auditor during the planning phase of an examination. While Exhibit E provides a list of items to assess the overall reliance on both external and internal auditors, this template provides additional suggestions to use in conjunction with Exhibit E to facilitate the meeting with the external auditor.

Communications with Analysts, Department Personnel and Other States

Examination Contacts

Bruce JensonCPA
Assistant Director – Solvency Monitoring
Phone: 816-783-8348
Fax: 816-460-7673

Bailey Henning
Financial Examination Manager
Phone: 816-783-8129
Fax: 816-460-7805

Jacob Steilen
Financial Examination and Accreditation Specialist
Phone: 816-783-8421
Fax: 816-460-1714