Schweich releases audit of Department of Insurance

State Auditor Tom Schweich today released his audit of the Missouri Department of Insurance, rating the state office's overall performance as good, the second-best rating.

Examination tax credit
The report looked favorably upon the insurance department's policy of allowing insurance companies to receive tax credits for examination costs.

One of five states to allow insurance companies to receive the tax credits - along with Alabama, North Dakota, Texas and Utah - Missouri's use of the credits shifts examination costs from insurance companies to the state's general revenue fund. During the 10 years ending Dec. 30, 2011, roughly $25.9 million in examination credits were redeemed, according to a news release from the auditor's office.

Governor's office payments
Discovering the Department of Insurance paid more than $23,000 for 70 flights of the governor's office during fiscal years 2010 and 2011, the auditor's report recommends more accurate use of the funding.

Only eight of the flights included insurance personnel.

"While some of these flights may have related to (the Department of Insurance), it appears the primary purposes of these flights were for functions associated with the governor's office. It is not appropriate for state agencies to bear the cost of such flights and personnel costs that provide no clear benefit to the applicable agencies," the report said.

Consumer affairs
According to the audit, the Insurance Department's consumer affairs division does not have adequate policies and procedures in place to properly investigate and resolve complaints.

Of 1,123 agent investigation cases opened as of June 30, 2012, 502 cases have been open since June 30, 2010, and some were as old as 2005.

In response to a recommendation to fix the timeliness of its consumer affairs division, department officials said measurable efficiency criteria would be the most proper management tool.