A Test Audit Program shall be conducted by the bureau to carry out ORS 737.318. To perform this function, the bureau shall maintain the test audit staff for examining pertinent records of a number of Oregon insureds and insurers established according to the schedule in Exhibit 1 of OAR 836-043-0130, or another appropriate audit level, as determined by the director. The purposes of the test audit program are as follows:

1. (1) To check the accuracy and reliability of each insurer's audits, verify the classifications assigned, and assure that the premiums charged are based upon filed rates, rating plans and rating systems on file with and approved by the director;
2. (2) To establish minimum auditing standards and to develop a program for monitoring insurer performance toward the achievement of established standards; and
3. (3) To improve audit proficiency through the evaluation of insurer auditing practices.

Statutory/Other Authority

ORS 731.244 & ORS 737.318

Statutes/Other Implemented

ORS 737.318

History

ID 5-2019, amend filed 04/19/2019, effective 07/01/2019
ID 13-2012, f. 7-16-12, cert. ef. 1-1-13
ID 18-1997, f. 11-25-97, cert. ef. 11-26-97
ID 7-1997(Temp), f. & cert. ef. 5-30-97
ID 1-1988, f. & cert. ef. 1-20-88