While many private and not-for-profit companies already have adopted certain measures voluntarily in response to the Sarbanes-Oxley Act (SOX), the National Association of Insurance Commissioners (NAIC) has taken a step that requires all insurance companies to implement certain requirements that mirror, in part, requirements of SOX, including Section 404. This was prompted by the NAIC’s adoption of revisions to the Annual Financial Reporting Model Regulation (“Model Audit Rule”) on June 11, 2006. This publication discusses how these revisions have three potential impacts on insurance companies and provides answers to frequently asked questions.