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NAIC MAR Compliance Academy

Offered bi-monthly on Tuesday-Fridays in four four hour CPE events

 

Focuses on the skills need by insurance professionals working on NAIC MAR annual compliance programs.

Our approach with this training academy is to provide the relevant information and skills which professionals will need to fulfill the "Internal Control Life Cycle" using the "top-down, risk-based" approach.

We teach the background knowledge sources, provide advice on how to conduct risk assessments, discuss scoping, and review how to plan the assessment of an internal control framework. Risk management activities are the key process to determine the requirements of a NAIC MAR program.

 

The MAR program deliverables should lead to management's opining on the status of the internal control framework in reference to an insurance commissioner's reporting requirements.

We have created detailed workshop materials based on our experiences with the creation and validation of internal controls for the annual compliance with MAR. Each attendee will go home with a set of 51 documents that were used to create the academy.

This sixteen hour (Four Mornings) CPE event provides you with the tradecraft skills to implement a compliance program that is consistent with NAIC Model Audit Rule compliance.

What You Get!!!

We present the roadmap to having the skills and knowledge to work on NAIC MAR compliance.

 

Relax, learn and enjoy expert instructor presentations, group discussions, role-playing, audit and compliance exercises, white-board diagramming and simulations.

Each attendee will receive 16 CPE Hours (YB). A certificate of completion will be provided.

Program Level of Understanding: Basic
Prerequisites: None
Advance Preparation: None
Delivery Format: Group Internet Based
NASBA Field(s) of Study: Auditing, Business Law, Business Management & Organization, Behavioral Ethics
CPE Credits: 16, based on 50 minutes of instruction per hour

CPE Event Highlights

  • NAIC Model Audit Rule Compliance

  • The Components of COSO

  • How to gauge the effectiveness of internal controls

  • How to build a "Culture of Compliance

Learning Objectives

Attendees will:

  • Defining "MAR based internal control framework" within an insurance organization

  • Describing the MAR Control Framework and its documents to management

  • Positioning attendees to design, implement and assess internal controls at all levels

 

Key Issues on the Agenda

Section 1 - NAIC Regulatory Context

  • NAIC Regulatory Context

  • NAIC Solvency Modernization

  • Risk-Focused Surveillance Cycle

  • Risk Assessment Cycle

  • NAIC Model Acts

SECTION 2 - INTERNAL CONTROL CONCEPTS

  • How the World Works!

  • Internal Control & Quality Control Defined

  • The Big Three Connection Concept

  • Understanding the 'Real Risks" - Pareto's Principle

  • The Layers of Cause

  • Deming's 14 Quality Concepts

  • Enterprise Risk Management Concept

  • Mission - Values - Business Model Concept

  • Humans and Internal Controls

  • Tone at the Top Concept

  • Competence

  • Human Communications

  • Dr. Kotter's Steps for Change

  • Program Management Concept

SECTION 3 -INTERNAL CONTROL AND ACCOUNTING FRAMEWORKS

  • SOX vs NAIC Model Audit Rule

  • Why Frameworks!!

  • U.S. GAAP vs Statutory Accounting Principles

  • COSO ERM Components

  • COSO 2013 Components & 17 Principles

SECTION 4 -INFORMATION TECHNOLOGY INTERNAL CONTROL CONCEPTS

  • Moore's Law

  • Categories of IT Control

  • What is information technology all about?

  • Information Technology Quality Control Frameworks

  • COBIT - COSO - ITIL - CMMI - PMBOK - ISO 17799

  • COBIT 5.0 Principles

  • COBIT Enterprise Enablers

  • COBIT 5.0 Domains

  • COBIT Governance Domain

  • COBIT Align, Plan & Organize Domain

  • COBIT Build, Acquire & Implement Domain

  • COBIT Deliver, Service & Support Domain

  • COBIT Monitor, Evaluation & Assess Domain

  • COBIT Software Life Cycle Approach - Four Layers

  • COBIT Software Life Cycle Approach - Create the Appropriate Environment

  • COBIT Software Life Cycle Approach - Programme Management

  • COBIT Software Life Cycle Approach - Change Enablement

  • COBIT Software Life Cycle Approach - Continual Improvement Life Cycle

SECTION 5 - NAIC LAYERS OF SOLVENCY ASSESSMENT

  • NAIC's Model Acts

  • NAIC's Regulatory Practices & Procedures

  • NAIC's Model Regulation Requiring Annual Audited Financial Reports

  • Model Audit Rule 2010 Focus

  • Financial Condition Examiners Handbook

  • NAIC Financial Examiner Risk-Focused Examinations

SECTION 6 - MANAGEMENT'S APPROACH TO SETTING MAR COMPLIANCE OBJECTIVES

  • COSO Principle 6: Specifies Suitable Objectives

  • Five Layers of Objectives

  • Have You Categorized Your Controls?

  • Attribute Tracking of Internal Controls

  • Assessment of "Big Three"

  • Six Elements in an Insurance Business Model

  • Entity Level Controls

  • Approach to Mapping Integration

  • NAIC Risk Assessments

  • NAIC Model Audit Rule: Risk Brands

  • NAIC Risk Assessment Approach

  • NAIC Model Audit Rule: Examination Assertions

  • COSO Principle 8: Assesses Fraud Risk

  • COSO Principle 9: Significant Chang

SECTION 7 - MANAGEMENT'S APPROACH TO DOCUMENTATION

  • Management's Layers of Risk Assessment

  • The Big Four's Different Approaches to Mapping to COSO 2013

  • Maturity Model: Policy - Standard - Procedure

  • Policy - Standard - Procedure - Guidelines Framework

  • Concepts Behind Policy-Procedure Effectiveness

SECTION 8 - TOOLKIT FOR THE ASSESSOR OF INTERNAL CONTROLS OVER FINANCIAL REPORTING

  • The Assessor's Toolkit Concepts

  • Four Stages of Competence

  • Get to the "Facts"

  • Monitoring and Analytics

  • What are the "Usual" suspects?

  • Use "S.P.I.N. Selling" During Your Interviews

  • Make the Management Action Plan SMART!

  • What is the "Cause" of the Finding?

  • Root Cause Analysis

  • Recognize Different Personalities

  • Deception-Detection Methodology

  • What Deception Sounds Like

  • What Deception Looks Like

  • What To Tell the "Executive"??

  • Optimize the Visual

  • Input - Process - Output

  • Can We Measure "Control Maturity"?

  • The "Walk Through"

  • Dr. Kotter's Steps for Change

SECTION 9 - INTERNAL CONTROL PROGRAM MANAGEMENT

  • MAR Program Organization

  • COSO 2013 Project Scope

  • Program Management: Scope Management

  • Project Management Killers

  • Project Planning Deliverables

SECTION 10 - ENTITY LEVEL ANNUAL INTERNAL CONTROL

  • MAR Section 3 - Definitions

  • Management's Certification of "ICFR"

  • Overall Assessment of a System of Internal Control

  • 10 Points for Risk Management

  • Risk Management is Not Perfect.

  • NAIC MAR ICFR Assessment

  • Residual Risk after Controls Verification

  • COSO Internal Control - Integrated Framework

  • KPMG Approach to Mapping Integration

  • SEC Defined "Entity Controls"

  • Characteristics of ELC Documentation

  • "Better Policy Management"

  • IT General Controls Risk Assessment

  • Financial Statement Risk Assessment

  • A "Major Deficiency" Can Occur.

  • Summary of Internal Control Deficiencies

  • Defensive Strategy "Business Resilience"

  • Defensive Strategy - "Getting the Right Information"

SECTION 11 - PROCESS LEVEL INTERNAL CONTROL FUNCTIONS

  • Process & Activity Ownership

  • Business Cycles and Processes

  • Risks within the Process

  • Business Process Documentation

  • What are the Assertions of the Key Control?

  • Segregation of Duties

  • Walk Through

  • Flowcharting

  • What About Spreadsheets?

  • Annual Assessment and "SSAE 18"

  • Control Self Assessment Program

SECTION 12 - THE INSURANCE ORGANIZATION INTERNAL AUDIT FUNCTION

  • Internal Audit Testing ICFR??

  • MAR Internal Audit Function Requirements

  • Internal Audit Charter

  • Internal Audit Coverage

  • Internal Audit Tactical Plan

  • External Audit Testing

  • Internal Control Group Testing

SECTION 13 - INTERNAL CONTROL TESTING

  • Did We Effectively Remediate and Re-Test?

  • Sufficient to Support Our Conclusion?

  • FCEH Examination Sampling

  • Types of Control Testing

  • Evaluate the COSO Stages of "Control Effectiveness"

  • NAIC Standard Testing Samples

  • Testing of Controls

SECTION 14 - INTERNAL CONTROL REPORTING TRADECRAFT

  • Do We Know our Audience?

  • Organize Content for Your Audience

  • Executive Summary Section

  • What is the "Condition" of the Finding?

  • What is the "Cause" of the Finding?

  • What is the "Effect" of the Finding?

  • Optimize the Tone

  • Management Action Plan (MAP)

SECTION 15 - INTERNAL CONTROL OVER FINANCIAL REPORTING SUMMARY

  • Opining

  • Assessment of ICFR

  • Seven Layers of Defense

  • NAIC's Position on Insolvency

  • Better Policy Management

  • Build a "Culture of Compliance"

  • Top COSO 2013 Key Control Programs

  • Keys to Successful ICFR