Listed below are several recent examples in which Invotex professionals provided services to clients in the insurance industry:
- An Invotex managing director was commissioned by the National Association of Mutual Insurance Companies (NAMIC) to perform a cost-benefit study of the then-proposed changes to the NAIC Model Audit Rule which had included certain SOX-like provisions. As a result, the new Annual Financial Reporting Model Regulation is widely viewed by many as being more cost-beneficial to insurers than the original NAIC proposal. Data resulting from the study was critical to the ensuing debate between industry representatives and regulators, culminating in key changes to the final model adopted by the NAIC: raising the threshold to require internal control reporting from $25 million to $500 million of annual direct and assumed written premium;
eliminating the requirement for an independent audit of management’s assertion on the effectiveness of internal controls; and
providing flexibility to management as to the framework or methodology to support their assessment of internal controls.
- In addition to managing the adjustment of over $60,000,000 in claims for an insolvent surety company, Invotex has represented a state insurance guaranty association in the evaluation and settlement of surety claims and the successful recovery of millions of dollars in assets. We have staffed the largest branch office of a major national surety carrier during a transition to new full time claims personnel, and we have investigated surety bond claims relating to automobile dealer title bonds, financial guaranty bonds, contractor’s license bonds, judicial bonds and others.
- Invotex has worked with counsel to the developer of a $35 million harbor-front condominium project on arbitration arising from construction cost over-runs. Included in our responsibilities were collection, correlation and interpretation of construction records relating to all aspects of the project. Included in our efforts was the reconstruction of progress schedules as well as the development of estimates of cost over-runs on the various segments of the project.
- Invotex was retained to investigate the potential diversion of funds within a condominium development program focused on providing assisted living to senior citizens. Through examination of financial records and interviews with company personnel, we documented the source of diversion and location of funds, ultimately obtaining a written confession from the responsible financial executive.
- Working with a regional surety company, Invotex, repeatedly, has been called upon to evaluate claims arising from employee dishonesty. By focusing on the distinction between losses directly related to policy coverage and other unrelated losses, we have been able to effect significant savings and accurate claim payments.
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