§ 23-61-201 — Examination of insurers required

(a) (1) The Insurance Commissioner shall examine the affairs, transactions, accounts, records, market conduct activity, and assets of each authorized insurer as often as in the commissioner's sole discretion he or she deems advisable. (2) The commissioner shall so examine each authorized insurer not less frequently than every five (5) years. (3) Examination of an alien insurer shall be limited to its insurance transactions and affairs in the United States. (4) In scheduling and determining the nature, scope, and frequency of the examinations, the commissioner shall consider such matters as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants, and other criteria as set forth in the most current edition of the applicable examiners handbook and other standards adopted by the National Association of Insurance Commissioners and in effect when the commissioner exercises discretion to conduct an examination under subdivision (a)(1) of this section. (b) The commissioner may, in like manner, examine each insurer applying for an initial certificate of authority to transact insurance in this state. (c) In lieu of making his or her own examination of any foreign or alien insurer authorized in this state, the commissioner may, in his or her discretion, accept a full report of the last recent examination of a foreign or alien insurer as prepared by the insurance department for the company's state of domicile or port-of-entry state. After January 1, 1994, such reports may only be accepted by the commissioner if: (1) The insurance department preparing the report was at the time of the examination accredited under the National Association of Insurance Commissioners' Financial Regulation Standards and Accreditation Program; or (2) The examination was performed with the participation of one (1) or more examiners employed by such an accredited state insurance department, who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their accredited insurance department. (d) As far as practical, the examination of a foreign or alien insurer shall be made in cooperation with the insurance supervisory officials of other states in which the insurer transacts business.

Legislative History

Acts 1959, No. 148, § 30; A.S.A. 1947, § 66-2115; Acts 1991, No. 723, § 2; 1995, No. 1272, § 3; 1997, No. 1000, § 2; 2007, No. 496, § 1.