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RECOMMENDATIONS

1.) Page 9

Intercompany Agreements

It was noted that there is no new tax allocation agreement even though there was a reorganization and changes during the examination period. Mapfre Holdings, Inc. sold the Company to Mapfre USA on July 16, 2007. It is recommended that the consolidated income tax agreement should be updated to reflect the new owner of the Company.

2.) Page 10

Accounts and Records

Per a review of the Company's IT system by Thomas Walker of the New Jersey Department of Banking and Insurance the disaster recovery plan appears to be adequate. However, although the Company appears to have adequate plans, they have not been tested. It is recommended that the Company adopt a regular testing schedule and document these regular tests.

3.) Page 14

Taxes, Licenses and Fees

It was noted that the Company did not accrue for statutory examination fees at December 31, 2008. It is recommended that in the future the Company should make a reasonable provision for future statutory

examinations.

4.) Page 14

Payable to Parent, Subsidiaries and Affiliates

It was noted during the examination that these expenses are related mostly to salary reimbursements for two employees and other office expenses at the Arizona office. There is no agreement in writing relating to these reimbursements to Mapfre USA of Florida. It is recommended that the Company draw up an agreeement to detail the stipulations of these reimbursements.

15

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