OAR 836-043-0155: Test Audit Standards

(1) An insurer meets the test audit performance standard when the number of premium differences for field audits and desk audits in excess of $500 or two percent of the insured's standard premium, whichever is greater, does not exceed the maximum allowable number of errors shown in the Test Audit Performance Standards in Exhibit 2. (2) An insurer that fails to meet the test audit performance standards for six consecutive quarters shall meet with the director or the director’s designated representative to provide a detailed explanation of the remedial measures the insurer is taking to restore overall audit proficiency to an acceptable level. (3) If an insurer fails to meet the test audit performance standards after implementing the remedial measures required in section (2) of this rule, the director may impose a penalty, including possible suspension of the insurer's certificate of authority. [ED. NOTE: To view attachments referenced in rule text, click here to view rule.]