§ 10-1-203 — Authority, scope, and scheduling of examinations

(1) The
commissioner or the commissioner's designee may conduct an examination of any
company as often as the commissioner, in the commissioner's sole discretion,
deems appropriate but shall, at a minimum, conduct a formal financial examination
of every insurer licensed in this state not less frequently than once every five years;
except that this does not include eligible nonadmitted insurers regulated in
accordance with article 5 of this title 10. In scheduling financial examinations and in
determining their nature, scope, and frequency, the commissioner shall consider
matters such 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 recent available
edition of the examiners' handbook adopted by the national association of
insurance commissioners.

(2) For purposes of completing an examination of any company under this
part 2, the commissioner may examine or investigate any person or the business of
any person insofar as such examination or investigation is, in the sole discretion of
the commissioner, necessary or material to the examination of the company.

(3) In lieu of a financial examination under this part 2 of any foreign or alien
insurer licensed in this state, the commissioner may accept an examination report
on the company as prepared by the insurance department for the company's state
of domicile or port-of-entry state; except that such reports may only be accepted if:

(a) The insurance department was, at the time of the examination, accredited
under the national association of insurance commissioners' financial regulation
standards and accreditation program; or

(b) The examination is performed under the supervision of an accredited
insurance department or with the participation of one or more examiners who are
employed by such an accredited state insurance department and 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 the examiners' insurance department.

Legislative History

Source: L. 2003: Entire article RC&RE, p. 606, � 1, effective July 1. L. 2012: (1) amended, (HB 12-1215), ch. 104, p. 354, � 7, effective August 8. L. 2017: (1) amended, (HB 17-1231), ch. 284, p. 1555, � 3, effective January 1, 2018.