https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ACorrective_action_plan 2026-05-03T21:59:24Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Corrective_action_plan&diff=10680&oldid=prev 2026-03-11T16:53:31Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>📋 &#039;&#039;&#039;Corrective action plan&#039;&#039;&#039; is a formal, documented set of remedial steps that an [[Definition:Insurance carrier | insurance carrier]], [[Definition:Managing general agent (MGA) | MGA]], [[Definition:Third-party administrator (TPA) | TPA]], or other regulated entity commits to undertake in order to resolve deficiencies identified during a regulatory examination, [[Definition:Audit | audit]], or compliance review. In the insurance context, these plans are most commonly triggered by findings from state [[Definition:Department of insurance (DOI) | departments of insurance]], [[Definition:Lloyd&#039;s of London | Lloyd&#039;s]] market oversight reviews, or internal audits revealing shortcomings in areas such as [[Definition:Claims handling | claims handling]], [[Definition:Underwriting | underwriting]] controls, [[Definition:Reserve | reserving]] accuracy, or [[Definition:Market conduct | market conduct]].<br /> <br /> ⚙️ When a regulator or oversight body issues findings, the affected entity typically must respond with a corrective action plan within a specified deadline. The plan identifies each deficiency, assigns responsibility for remediation, lays out specific actions to be taken, and establishes measurable milestones with target completion dates. Regulators then monitor progress — often requiring periodic status reports and follow-up examinations to verify that the issues have been resolved. In the [[Definition:Delegated underwriting authority (DUA) | delegated authority]] space, a carrier may impose its own corrective action requirements on a [[Definition:Coverholder | coverholder]] or MGA whose performance falls below agreed standards in areas like [[Definition:Loss ratio (L/R) | loss ratios]], [[Definition:Bordereaux | bordereaux]] reporting accuracy, or adherence to [[Definition:Binding authority agreement | binding authority agreement]] terms.<br /> <br /> 🔑 Far from being a mere bureaucratic exercise, an effective corrective action plan can determine whether a company retains its [[Definition:License | license]], preserves key delegated authority relationships, or avoids escalating enforcement actions such as consent orders, fines, or receivership proceedings. Regulators view the quality and timeliness of a plan as a litmus test for management competence and organizational [[Definition:Corporate governance (insurance) | governance]]. Companies that treat corrective action plans seriously — embedding them into their [[Definition:Enterprise risk management (ERM) | enterprise risk management]] frameworks and using them as catalysts for systemic improvement rather than one-off fixes — tend to build stronger regulatory relationships and more resilient operations over time.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Market conduct]]<br /> * [[Definition:Regulatory compliance]]<br /> * [[Definition:Financial examination]]<br /> * [[Definition:Internal controls]]<br /> * [[Definition:Enterprise risk management (ERM)]]<br /> * [[Definition:Consent order]]<br /> {{Div col end}}</div>

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