An Act relating to the Oklahoma Annual Financial
Report Act. The measure states that audit committees must conduct both an internal and external audit function, and defines internal audit function. An internal audit function must assess an insurer’s governance, risk management, and
internal controls, remain organizationally independent, and follow reporting requirements. The measure exempts certain insurers from the internal audit function requirement, including insurers with a gross annual premium less than $500 million and groups of insurers with a gross annual premium less than $1 billion. If an insurer or group of insurers is no longer eligible for the exemption, they will have one year to comply with the requirements of the internal audit function.