21 April 2022 8:47

Which of the following best defines the purpose of the NAIC Annuity Suitability Model Regulation?

What is the NAIC Suitability in annuity Transaction Model regulation?

The Suitability in Annuity Transactions Model Regulation (#275) serves as a basis for this regulatory framework. Model #275 sets forth standards and procedures for recommending annuity products to consumers to ensure their insurance and financial objectives are appropriately addressed.

Which of the following is a suitability consideration per NAIC’s suitability model regulation?

“Suitability information” means information that is reasonably appropriate to determine the suitability of a recommendation, including the following: (1) Age; (2) Annual income; (3) Financial situation and needs, including the financial resources used for the funding of the annuity; (4) Financial experience; (5) …

What is the model suitability act?

In order to ensure the insurance needs and financial objectives of consumers were appropriately being addressed at the time an annuity sale or replacement took place, in 2003, the NAIC adopted the suitability model, which set forth standards and procedures for recommendations to consumers that result in a transaction

Who does the NAIC Model regulation apply to?

Applies to all health plans, including grandfathered plans. The ACA, and the NAIC’s Model Language set out the minimum standard of consumer protections; any state can enact laws that are more protective. For example, states could improve on this Model Language in the following ways: 1.

What is the objective of the NAIC?

While the NAIC is made up of each state’s insurance commissioners, it remains a non-governmental organization. Its main purpose is to protect and benefit insurance consumers by promoting uniformity of insurance laws and state regulations.

What is NAIC best interest standard?

The NAIC Best Interest Standard Protects Annuity Consumers

To determine your best interest the automobile dealer needs to understand more about you, your needs and your wants. They would need to document those needs and wants and disclose any conflicts of interest they may have.

What does NAIC mean in insurance?

The National Association of Insurance Commissioners

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories.

Why was the NAIC created?

Created with the mission of providing a forum for regulator education and discussion of innovation and technology in the insurance sector, to monitor technology developments that affect the state insurance regulatory framework, and to develop regulatory guidance, as appropriate.

What is the NAIC Model Audit Rule compliance?

The Model Audit Rule or MAR, also known as the National Association of Insurance Commissioners (NAIC) Annual Financial Reporting Model Regulation, requires that private insurance companies with over $500 million in direct written premiums to adopt corporate governance and reporting standards.

How do you audit a model?

For a full-scope model audit, the following elements would usually be included:

  1. A review of the model’s logic;
  2. A review of the model’s consistency with financial and contractual documentation;
  3. A review of the model’s consistency with relevant accounting and tax requirements;
  4. A sensitivity review.

What is a SOX audit?

A SOX compliance audit is intended to verify the financial statements of the company, and the processes involved in creating them. During the audit, the financial statements and management of internal controls are analyzed and assessed by an external auditor. The audit report must be made available to relevant parties.

What are audit rules?

There are three types of audit rules: Control rules: These rules are used for changing the configuration and settings of the audit system itself. Filesystem rules: These are file or directory watches. Using these rules, we can audit any kind of access to specific files or directories.

What are the 3 types of audits?

There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits. External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.

What are the three general standards of auditing?

The 10 standards in the GAAS are grouped into three categories: general standards, standards of field work, and standards of reporting. These standards appear in Table 9.2.

What are the objective of an auditor?

The auditor’s objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes the auditor’s opinion.

What is the purpose of the auditor quizlet?

what is the purpose of auditing? The purpose of an audit is to provide financial statement users with an opinion by the auditor regarding whether the financial statements are presented fair, in all material respects, in accordance with the applicable financial reporting framework.

What is an audit study quizlet?

auditing. the systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users. business risk.

Why does the auditor divide the financial statements into segments around the financial statement cycles?

The auditor’s responsibility will depend on whether the laws or regulations are expected to have a direct impact on the financial statements. Why does the auditor divide the financial statements into smaller segments? Using the cycle approach makes the audit more manageable.

What is the amount of quick assets quizlet?

The quick assets are cash, accounts receivable and marketable securities. Thus, the quick assets are $30,000 + $45,000 + $36,000 = $111,000.

What is quick asset?

Quick assets refer to assets owned by a company with a commercial or exchange value that can easily be converted into cash or that are already in a cash form. Quick assets are therefore considered to be the most highly liquid assets held by a company.

What is quick ratio quizlet?

The quick ratio compares the cash plus cash equivalents and accounts receivable to the current liabilities. The primary difference between the current ratio and the quick ratio is the quick ratio does not include inventory and prepaid expenses in the calculation.