MARYLAND INSURANCE ADMINISTRATION
JUNE 24, 2004
X. AGENCY AUDITS
The Company’s internal auditors audit the Agency annually. This internal audit reviews the business controls in place at the Agency. The auditor rates the controls as:
Controls in place.
Controls generally in place.
Some improvement needed.
Controls need improvement.
At results to President Summary.
the completion of an internal audit the Corporate Compliance Director sends the
the territorial Vice-President of the Mid-Atlantic territory. submits a written confirmation / corrective action plan as The internal audit report checklist would include:
The territorial Vice a Results-Executive
Recruiting / Agent Selection / Hiring / Licensing / Registration / Termination
Staff Development and Training
New Business Acquisition
Suitability (Appropriateness of Sale)
Customer Service and Contact
The Agency provided the examiners copies of 16 Maryland agency audit reports from various agencies for the survey period. These reports were reviewed and it was noted that the issue of replacements was discussed in six of the reports. Customer service and contact was an issue in seven reports.
It was noted in the audit reports that agents involved in improper replacement activities were given additional training. Completion and the extent of such training could not be verified.
The customer service and contact issues involved failure to implement correspondence rules, the improper handling of complaints (see examiner comments in “Policyholder Complaint” section of report), and the improper processing of cash. The impropriety in the handling of cash was not specified.
MET LIFE REPORT NO. 786-01