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  • HC-3.2 HC-3.2 Audit Committee

    • HC-3.2.1

      The Board must establish an audit committee of at least three directors of which the majority should be independent including the Chairman. The committee must:

      (a) Review the company's accounting and financial practices;
      (b) Review the integrity of the insurance licensee's financial and internal controls and financial statements;
      (c) Review the insurance licensee's compliance with legal requirements;
      (d) Recommend the appointment, compensation and oversight of the insurance licensee's external auditor; and
      (e) Recommend the appointment of the internal auditor.
      January 2011

    • HC-3.2.2

      The Audit Committee should ensure that the external auditor firm and its partners are truly independent of the licensee and have no financial or other relationship with the licensee. Audit findings should be used as an independent check on the information received from management about the licensee's operations and performance and the effectiveness of internal controls.

      January 2011