When state insurance regulators meet in mid-June to discussincorporating elements of the Sarbanes-Oxley Act of 2002 in a modelaudit rule that is in place in 39 states, two of three pieces underdiscussion will be moving toward completion.

Recent discussions regarding Titles II and III potentialchanges, auditor independence and corporate governance,respectively, have resulted in changes that could be incorporatedinto draft revisions of the Model Regulation Requiring AnnualAudited Financial Statements, also called the Model Audit Rule. MARis a model of the National Association of Insurance Commissioners,Kansas City, Mo., which will be holding its summer national meetingJune 11-14.

These two components of SOX changes will be held until work onTitle IV which covers internal controls is finalized, says DougStolte, chair of the NAIC/AICPA working group and deputycommissioner of Virginia's bureau of insurance. The goal is thatall components will be advanced together through the NAIC and thenbe brought as one change to state legislatures, he explains.