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§ 625-5. Establishment of internal audit and compliance procedures

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 40 P.S. Insurance

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 40 P.S. Insurance (Refs & Annos)
Chapter 2. Insurance Companies (Refs & Annos)
Article IV-a. Life and Endowment Insurance and Annuities
40 P.S. § 625-5
§ 625-5. Establishment of internal audit and compliance procedures
Currentness
(a) Every insurer shall institute and maintain internal audit and compliance procedures which provide for the evaluation of compliance with all statutes and regulations dealing with sales methods, advertising and filing and approval requirements for life insurance and annuities. These procedures shall also provide for the following:
(1) Periodic reviews of consumer complaints in order to identify patterns of improper practices.
(2) Regular reporting to senior officers and the board of directors or an appropriate committee thereof with respect to any significant findings.
(3) The establishment of lines of communication, control and responsibility over the dissemination of advertising and promotional materials, including illustrations and illustration explanations, with the requirement that such materials shall not be used without the approval by company employees whose compensation, other than generally applicable company bonus or incentive plans, is not directly linked to marketing or sales.
(b) Each insurer shall make available for department inspection upon request its internal audit and compliance procedures which are instituted as required by this section.

Credits

1921, May 17, P.L. 682, No. 284, § 405-A, added 1996, Dec. 18, P.L. 1003, No. 154, § 3, effective July 1, 1997.
40 P.S. § 625-5, PA ST 40 P.S. § 625-5
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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