§ 26-3-316 — Internal audit function requirements

Wyoming § 26-3-316

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 3: AUTHORIZATION OF INSURERS AND

Text

(a) An insurer is exempt from the requirements of this
section if:
(i) The insurer has annual direct written and
unaffiliated assumed premiums, including international direct
and assumed premiums, but excluding premiums reinsured with the
federal crop insurance corporation and federal flood program,
less than five hundred million dollars ($500,000,000.00); and
(ii) If the insurer is a member of a group of
insurers, the group has annual direct written and unaffiliated
assumed premiums, including international direct and assumed
premiums, but excluding premiums reinsured with the federal crop
insurance corporation and federal flood program, less than one
billion dollars ($1,000,000,000.00).
(b) Each insurer or group of insurers shall establish an
internal audit function providing independent oversight
regarding the insurer's governance, risk management and internal
controls. This oversight 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) The internal audit function shall be organizationally
independent. Specifically, the internal audit function shall not
defer ultimate judgment on audit matters to others and shall
appoint an individual to head the internal audit function who
shall 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 not less than annually, on
the periodic audit plan, factors that may adversely impact the
internal audit function's 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.