§ 10-3-806 — Examination

Colorado § 10-3-806

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Regulation of Insurance Companies

Text

(1) Subject to the limitation contained in this section
and in addition to the powers that the commissioner has under this title relating to
the examination of insurers, the commissioner may examine any insurer registered
under section 10-3-804 and its affiliates to ascertain the financial condition of the
insurer, including the enterprise risk to the insurer by the ultimate controlling party,
by any entity or combination of entities within the insurance holding company
system, or by the insurance holding company system on a consolidated basis.

(2) Access to books and records. (a) The commissioner may order any
insurer registered under section 10-3-804 to produce such records, books, or other
information papers in the possession of the insurer or its affiliates as are reasonably
necessary to determine compliance with this section.

(b) To determine compliance with this section, the commissioner may order
any insurer registered under section 10-3-804 to produce information not in the
possession of the insurer if the insurer can obtain access to the information
pursuant to contractual relationships, statutory obligations, or other methods. If the
insurer cannot obtain the information requested by the commissioner, the insurer
shall provide the commissioner a detailed explanation of the reason that the insurer
cannot obtain the information and the identity of the holder of the information.

(3) The commissioner may retain, at the registered insurer's expense, such
attorneys, actuaries, accountants, and other experts not otherwise a part of the
commissioner's staff as are reasonably necessary to assist in the conduct of the
examination under subsection (1) of this section. Each person so retained is under
the direction and control of the commissioner and shall act in a purely advisory
capacity.

(4) Each registered insurer producing for examination records, books, and
papers pursuant to subsection (1) of this section is liable for and shall pay the
expense of examination in accordance with part 2 of article 1 of this title.

(5) If the insurer fails to comply with an order, the commissioner may
examine the affiliates to obtain the information. The commissioner may also issue
subpoenas, administer oaths, and examine under oath any person for purposes of
determining compliance with this section. Upon the failure or refusal of any person
to obey a subpoena, the commissioner may petition a court of competent
jurisdiction, and upon proper showing, the court may enter an order compelling the
witness to appear and testify or produce documentary evidence. Failure to obey the
court order is punishable as contempt of court. Every person shall attend as a
witness at the place specified in the subpoena, when subpoenaed, anywhere within
the state. Witnesses not employed by the insurer shall be paid the same fees and
mileage as are paid to witnesses in the courts of this state, which fees, mileage, and
actual expenses, if any, necessarily incurred in securing the attendance of
witnesses, and their testimony, must be itemized by the commissioner and charged
against, and be paid by, the company being examined.

Legislative History

Source: L. 2014: Entire part R&RE, (SB 14-152), ch. 312, p. 1346, � 2, effective July 1. L. 2016: (5) added, (SB 16-029), ch. 32, p. 72, � 1, effective March 18.