Section 680A.1993 - Internal audit function: Establishment; independence; reporting requirements; entities within which establishment is satisfactory1. Each insurer or group of insurers shall establish an internal audit function to provide assurance to the audit committee and the management of the insurer or group of insurers regarding the governance, risk management and internal controls of the insurer or group of insurers. The internal audit function must provide this assurance by performing general and specific audits, reviews and tests and by employing other techniques deemed necessary to protect assets, evaluate internal control effectiveness and efficiency and evaluate compliance with policies and regulations.2. The internal audit function must be organizationally independent to ensure that internal auditors remain objective. The internal audit function shall not defer ultimate judgment on any audit matter to others. The audit committee shall appoint a person to head the internal audit function who has direct and unrestricted access to each applicable board of directors. A requirement that the internal audit function report to more than one person does not violate the requirements of this subsection.3. The person appointed to head the internal audit function shall report to the audit committee regularly, but not less than annually, on the plan of the internal audit function for periodic audits, factors that may adversely impact the independence or effectiveness of the internal audit function, material findings from completed audits and the appropriateness of corrective actions implemented by management as a result of audit findings.4. An insurer which is a member of an insurance holding company system as defined in NRS 692C.060 or included in a group of insurers is deemed to satisfy the requirements of this section if an internal audit function has been established within the legal entity which exercises ultimate control over the insurer, within the intermediate holding company or within the insurer which satisfies the requirements of this section with respect to the insurer.Nev. Admin. Code § 680A.1993
Added to NAC by Comm'r of Insurance by R108-16A, 12-21-2016, eff. 1/1/2017