Regardless of the control environment and the extent of internal/external auditing efforts, errors and omissions cannot be completely avoided. These administrative oversights could cause a significant drain on the profitability of a business.

To address this management concern, the principals of ACG conduct an intensive review of your ceded life reinsurance portfolio. This review encompasses 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 areas reviewed are highlighted below:

• Ensure that the company is maintaining its full retention on all inforce polices ceded on an automatic basis.
• Verify that reinsurance NAAR is properly stated in accordance with the relevant treaty provision.
• Determine that conversions are being properly processed using the original issue age and duration and not attained age and original duration.
• Ensure that table rating and smoking status is properly reflected on the reinsurance master file.
• Verify that premium rates on the reinsurance system are in accordance with reinsurance treaties and that reinsurance premium and allowances are being properly calculated.
• Review claim files and other relevant documentation to ensure that the company is properly recovering waiver and life benefits.