Ken Hutchinson, a senior Auditor with over ten years of experience, discusses his job responsibilities and the challenges when performing transactional and operational audits. Ken’s primary focus is to audit cover holders and managing general agents on behalf of managing agents or policy issuing companies. Ken highlights some of the issues encountered during audits. These include incorrect or outdated policy forms and schedules, internal policies and procedures that are not kept current or updated, cover holders or MGAs exceeding their annual premium income limits, and incorrect calculations of balances due to managing agents. He also shares a recent audit finding in which the monthly balance due to the managing agent had been miscalculated by the cover holder for two years. Ken emphasizes that if these issues are not resolved at the time a policy is issued, the managing agent could be at risk of unexpected financial exposure, regulatory penalties, and greater than expected exposure to volatile business segments. Ken notes that while cover holders are typically well-intentioned, their staff may not always be sufficiently trained to carry out all the required functions. He encourages viewers to contact his team to discuss any concerns they may have and reminds them that his team is always ready to help with their challenges.
