Independent Audit Or Examination

01. Annual Independent Audit of MGA. An independent audit by a certified public accountant is conducted annually for MGAs currently under contract and is to be contracted for by the insurer. The independent audit will include the following: (7-1-26) a. Report of independent certified public accountant; (3-31-22) IDAHO ADMINISTRATIVE CODE IDAPA 18.06.05 Department of Insurance Managing General Agents (MGA) Section 015 Page 4 b. Balance sheet; (3-31-22) c. Statement of income; (3-31-22) d. Statement of cash flow; (3-31-22) e. Statement of income and retained earnings; (3-31-22) f. Notes on financial statements - these notes are those prescribed by General Accepted Accounting Principals; and (3-31-22) g. A copy of a management letter or a narrative statement setting forth what would have been the content of the management letter had such letter been completed. (3-31-22) 02. Examination of MGA. The Department retains authority to examine an MGA notwithstanding the termination of the MGA’s contractual authority. Pursuant to the provisions of Title 41, Chapter 2, Idaho Code, the insurer employing the MGA reimburses the Department for the expense of such examination. (7-1-26)