The following accounting audit findings should trigger concern, requiring expert assistance:
- The existence of a Self Insurance Program
- The existence of a Captive Insurance Company, and if so, possible infrequent actuarial review and low capital.
- Past decisions not to purchase insurance.
- Past decisions to purchase insurance for prior uninsured exposure.
- Apparent Cash Flow Advantages of Retrospectively rated policies.
- Deductible / retention increase.
- Liability limits reduced
- Company is a member of a risk sharing or pooling arrangement.
- Insured property values are unchanged from the prior year.
- Solvency of insurance carrier. Liabilities will increase if the insurer becomes insolvent.
- The insurance program has not been audited by an outside firm for some time.