{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-311a.14.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-311A.14.1","heading":"Internal audit function requirements - Exemptions","body":"A. Exemption – An insurer is exempt from the requirements of\n\nthis section if:\n\n1. The insurer has annual direct written and unaffiliated\n\nassumed premium, including international direct and assumed premium,\n\nbut excluding premiums reinsured with the Federal Crop Insurance\n\nCorporation and Federal Flood Program less than Five Hundred Million\n\nDollars ($500,000,000.00); or\n\n2. If the insurer is a member of a group of insurers that has\n\nannual direct written and unaffiliated assumed premium, including\n\ninternational direct and assumed premium, but excluding premiums\n\nreinsured with the Federal Crop Insurance Corporation and Federal\n\nFlood Program, less than One Billion Dollars ($1,000,000,000.00).\n\nB. Function – The insurer or group of insurers shall establish\n\nan internal audit function providing independent, objective and\n\nreasonable assurance to the audit committee and insurer management\n\nregarding the insurer's governance, risk management and internal\n\ncontrols. This assurance shall be provided by performing general\n\nand specific audits, reviews and tests and by employing other\n\ntechniques deemed necessary to protect assets, evaluate control\n\neffectiveness and efficiency and evaluate compliance with policies\n\nand regulations.\n\nC. Independence – In order to ensure that internal auditors\n\nremain objective, the internal audit function must be\n\norganizationally independent. Specifically, the internal audit\n\nfunction will not defer ultimate judgment on audit matters to\n\nothers, and shall appoint an individual to head the internal audit\n\nfunction who will have direct and unrestricted access to the board\n\nof directors. Organizational independence does not preclude dual-\n\nreporting relationships.\n\nD. Reporting – The head of the internal audit function shall\n\nreport to the audit committee regularly, but no less than annually,\n\non the periodic audit plan, factors that may adversely impact the\n\ninternal audit function's independence or effectiveness, material\n\nfindings from completed audits and the appropriateness of corrective\n\nactions implemented by management as a result of audit findings.\n\nE. Additional Requirements – If an insurer is a member of an\n\ninsurance holding company system or included in a group of insurers,\n\nthe insurer may satisfy the internal audit function requirements set\n\nforth in this section at the ultimate controlling parent level, an\n\nintermediate holding company level or the individual legal entity\n\nlevel.\n\nF. Upon written request and with good cause shown, the\n\nInsurance Commissioner may grant an exemption from the internal\n\naudit function.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"baefcc186c4415001a878d0025ebfc46d953988bb2762cb21de57d6b1f54de7b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-311a.14","next":"us-ok/okla.-stat.-tit.-36-36-311a.15"},"notice":"GroundRules: Original legal text. Not legal advice."}