Policies and procedures for tracking or assessing penalties on late filings for insurance polices are lacking at the department in charge of regulating the insurance industry in Missouri a new audit finds.

The Department of Insurance, Financial Institutions and Professional Registration is unable to determine the extent of late filings each quarter, according to the report by Missouri Auditor Susan Montee.

Missouri Auditor Susan Montee

The DIFP does have procedures in place to ensure annual reports are submitted, according to the report released Tuesday. But similar procedures to track quarterly reports have not been established.

The department is therefore unable to determine the extent of the late filings and whether interest and penalties are due, according to the report, which notes that state law allows the department to assess fines up to $1,000 for each offense. No fines or penalties, however, were assessed during the audit period.

The DFIP responded in the report that an electronic tracking system was implemented in May, which allows the department to track and monitor late filings.

The audit also notes that the DIFP does not have adequate cash management procedures to ensure minimal time elapses between the receipt of federal grant money and the distribution of grants.

DFIP responded that the department has now implemented a two-person process to ensure federal grants are for the correct amount and that the department does not hold any federal funds in its account.

By Brian R. Hook, brhook@missouriwatchdog.org, (314) 482-7944