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Streamline Your
Regulatory Insurance
Examinations/Audits

ARC Strategic Services,
Your trusted partner for state insurance
examinations and audits.

Wondering how to ensure a successful state examination/audit?

Unsure if your policies and procedures meet regulatory standards?

Concerned about responding to requests in a way that is acceptable to the state insurance department?

ARC Strategic Services has the answers you need. Our team of seasoned insurance experts specializes in regulatory compliance, addressing the strategic needs of your organization.

Opening Question Liaison


Navigating the State Insurance Examination/Audit Process with Expertise

Are you prepared for the evolving landscape of state insurance examinations? The financial examination/audit process transitioned from a focus on mere financial statement accuracy to a comprehensive evaluation of operational risks and mitigation efforts. It is therefore crucial to have the right support by your side.

At ARC Strategic Services, we understand the intricate shifts in the examination process and stand ready to assist your organization in achieving success. With our team’s extensive experience and background, we offer tailored solutions to navigate you through every stage of the examination with confidence. Our consultants have spent their entire careers in both the industry (CFO/Controller) and regulatory (financial examiner, Commissioner) side of insurance.

Gone are the days of merely assessing financial statements for mistakes. Today, the examination process delves deeper into understanding the inherent risks within insurers’ operations and evaluating their proactive measures to identify and mitigate these risks effectively. Our team excels in this nuanced approach, providing qualitative assessments that align with the evolving standards.

Comprehensive Risk Assessments

Identifying potential vulnerabilities and developing strategies for mitigation.

Proactive Compliance Measures

Ensuring adherence to regulatory requirements and industry best practices.

First-Time Accuracy

Incorrect responses multiply examiner questions and cause delays. We ensure accuracy on the first attempt to avoid extended timelines and unnecessary scrutiny.

Expert Representation

Advocating on your behalf during the examination process, fostering transparency and clarity.


How We Can Help

Requests from examiners during a state insurance examination can be voluminous and complex. The ARC Strategic Services team builds a trusted partnership with your team so that together, we satisfy the stringent timelines and complex responses dictated by the state regulators. Below is a sampling of examination requests that we have completed for clients:

Financial Examinations

Discovery & Planning

The examination begins with a comprehensive discovery phase where examiners gather foundational information about your organization, its governance structure, and key operational areas. During this phase, ARC helps you compile and organize initial documentation while preparing leadership for critical interviews.

Documentation & Information Gathering
  • Examination Planning Questionnaire (Exhibit B)
  • MLR Network Adequacy
  • Board of Governors Listing
  • Board and Committee Minutes
  • Actuarial Reports
  • NAIC Biographical Information
  • Actuarial Information
  • Custodial Agreements
  • Articles and Amendments
  • Paid Claims Data
  • Claim Check Register
Governance & Compliance Review
  • Auditor Workpaper Access
  • C-Level Interview Schedule
  • Board Members Conflict Interest Statements
  • Review of External Audit workpapers
  • Bylaw review and gap analysis
  • Filing of Form D
  • Contingent Liabilities
  • Conflict of Interest statements review
  • Code of Conduct Acknowledgement
  • Whistleblower Policy Testing
  • Claim forms and applications
  • Review of CPA Engagement Letter

Risk Assessment & Understanding

Examiners assess inherent risks within your key functional activities, including reserving, pricing, underwriting, claims handling, and investment management. ARC facilitates discussions between your operational teams and examiners to ensure they understand your risk landscape and mitigation strategies.

Operational Risk Review
  • Reserving Risk Assessment
  • Pricing and Underwriting Risk Review
  • Claims Handling Processes
  • Investment Strategy & Monitoring
  • Reinsurance Arrangements
  • Related-Party Transactions
  • Producer/MGA Activity Monitoring
  • Lines of Business Analysis
Documentation Supporting
  • Flux Analysis
  • Lag Table Cell Paid Data Support
  • Five Year Proforma
  • Subsequent Events Documentation
  • Reinsurance Contract Review Checklist
  • Investments Compliance Checklist
  • Investment Accounts Information
  • Annual Statement Notes

Controls & Mitigation Evaluation

The examination team evaluates the control environment and risk mitigation strategies your organization has implemented. This includes assessing the quality of internal audit, IT controls, claims handling procedures, and financial reporting controls. ARC coordinates testing and documentation to support your control assertions.

Control Environment & Testing
  • Controls Mitigation Strategies
  • IT Control Documentation
  • Internal Audit Assessment & Reports
  • CPA Workpaper Review
  • Claims Completeness Testing
  • Claims Testing
  • Journal Entries Support
  • Key Bank Account Authorization
Governance & Risk Controls
  • Controls Supporting Documentation
  • Cash Reconciliations
  • Questions for Appointed Actuary
  • Prospective Risk BCP Committee
  • Subcapitated Entities Documentation
  • Additional DxSelect Reports
  • Insurance Coverages and Legal Review
  • Claim Forms and Applications

Detailed Financial Analysis

Based on the examiner’s assessment of risks and controls, detailed examination procedures are conducted in higher-risk areas. This phase involves deep-dive testing of reserves, investments, related-party transactions, and other key accounts. ARC supports your finance team in compiling supporting documentation and ensuring accuracy of responses.

Financial & Investment Review
  • Related Party/Intercompany Settlements
  • Related Party Contracts
  • AMS Management Fee Payment Reconciliation
  • Restricted Cash
  • Investment Compliance Checklist
  • Investments Committee Review
  • Investments Monitoring – Watchlist Memo
Accounting & Reporting Analysis
  • Budget to Actual Variances
  • General Ledger and Trial Balance Reports
  • Tax Sharing Approval Letter
  • Payroll Vendor SOC Reports
  • Claims Data Follow Up
  • Reinsurance Follow Up
  • Meeting with Actuaries

Findings & Closure

As the examination concludes, examiners document their findings and observations. ARC assists your organization in developing thoughtful, substantive responses to any examination observations and in coordinating remediation efforts to address identified control gaps or risks.

  • Exam Observations/Findings Responses
  • Remediation Plans
  • Status Updates & Follow-up Communication
  • Management Letter Review
  • Coordination of Corrective Actions

IT Examination Requests

Our IT systems and controls consulting services help ensure your technology infrastructure meets regulatory standards and supports your business objectives.

Policy Development & Vendor Management

  • Procurement Policy
  • Procurement Exception Form template
  • Vendor Management Policy
  • Vendor Inventory template
  • Vendor Security Due Diligence Questionnaire
  • Vendor Business Due Diligence Template
  • Vendor Due Diligence – IT template
  • Vendor Review Template
  • Vendor Offboarding Checklist
  • Vendor SOC 1 review
  • Mobile Code Usage Policy
  • End User Computing Policy
  • End User Computing Inventory template
  • Data Encryption Policy
  • Data Retention Policy

Internal Testing of IT Controls

  • Internal testing of IT controls


Enterprise Risk Management (ERM)

State regulators increasingly expect insurance companies to demonstrate a mature Enterprise Risk Management framework. ARC supports the development and documentation of ERM processes that meet regulatory expectations while supporting your organization’s strategic objectives.

Documentation Review

Comprehensive review of existing ERM related documentation and risk management policies to assess current state and identify gaps.

Risk Discussions

Facilitated discussions on various risk management approaches and strategies to align organizational thinking and establish priorities.

Future-State Planning

Development and finalization of a comprehensive future-state ERM framework that meets regulatory expectations and supports business objectives.


Why Choose ARC Strategic Services

We bring a unique combination of examination expertise, regulatory knowledge, and practical industry experience. Our consultants are former examiners and insurance industry professionals who understand both sides of the examination process. Unlike generalist consultants, we specialize in insurance regulatory compliance and have managed hundreds of examination requests for insurance companies.

We work as an extension of your team, not as external advisors. We take ownership of examination deadlines, quality standards, and your relationship with regulators. Our goal is to make the examination process smoother, faster, and less disruptive to your organization.

Ready to Get Started?

Whether you’re preparing for your first examination or seeking to enhance your existing processes, ARC Strategic Services is here to support you. Contact us for a confidential discussion about your examination preparation needs.

Schedule a Consultation

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