In the experience of most companies, regardless of the control environment and the extent of internal/external auditing efforts, errors and omissions cannot be completely avoided. However, these administrative oversights cause a significant drain on the profitability of a business.

To address this management concern, the principals of ACG conduct a one-time intensive review of your entire ceded life reinsurance portfolio. This review encompasses all past transactions with a focus on identifying errors and omissions that have contributed to the overpayment of reinsurance premiums or under recovery of reinsurance benefits.

Some of the specific tests performed are highlighted below:

• A comparison of all policies on the reinsurance master file to the corresponding policies on the direct master files (numeric, alpha) to ensure that these policies are in force, for the correct face amount, have the same smoker status and table ratings. In addition, we ensure that the company is maintaining its full retention on all automatic cessions.
• Review claim files and other relevant documentation to ensure that the company is properly recovering waiver and life benefits.

For a detailed description of the ACG scope of audit, call Jack Brown at 1-800-471-5825 or e-mail.