§ 507.10 — Examination reports

Iowa § 507.10

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 507: EXAMINATION OF INSURANCE COMPANIES

Text

1. General description. All examination reports shall be comprised only of facts
appearing upon the books, records, or other documents of the company, its agents, or other
persons examined, or as ascertained from the testimony of its officers or agents or other
persons examined concerning its affairs, and such conclusions and recommendations as the
examiners find reasonably warranted from the facts.
2. Filing of examination report. No later than sixty days following completion of the
examination, the examiner in charge shall file with the division a verified written report of
examination. Upon receipt of the verified report and after administrative review, the division
shall transmit the report to the company examined, together with a notice which shall afford
the company examined a reasonable opportunity of not more than thirty days to make a
written submission or rebuttal with respect to any matters contained in the examination
report.
3. Adoption of report on examination. Within twenty days of the end of the period
allowed for the receipt of written submissions or rebuttals, the commissioner shall fully
consider and review the report, together with any written submissions or rebuttals and any
relevant portions of the examiner’s work papers and enter an order which does one of the
following:
a. Adopts the examination report as filed or with modification or corrections. If the
examination report reveals that the company is operating in violation of any law or a rule
or prior order of the commissioner, the commissioner may order the company to take any
action the commissioner considers necessary and appropriate to cure the violation.
b. Rejects the examination report with directions to the examiners to reopen the
examination for purposes of obtaining additional data, documentation, or information, and
refiling pursuant to subsection 1 above.
c. Calls for an investigatory hearing with no less than twenty days’ notice to the company
for purposes of obtaining additional documentation, data, information, and testimony.
4. Orders and procedures.
a. All orders entered pursuant to subsection 3, paragraph “a”, shall be accompanied by
findings and conclusions resulting from the commissioner’s consideration and review of
the examination report, relevant examiner work papers, and any written submissions or
rebuttals. Any such order is a final administrative decision and may be appealed pursuant to
chapter 17A, and shall be served upon the company by certified mail, together with a copy of
the adopted examination report. The board of directors of the company shall timely review
the adopted report. The minutes of the meeting of the board at which the adopted report is
considered shall reflect that each member of the board has reviewed the adopted report.
b. Any hearing conducted under subsection 3, paragraph “c”, by the commissioner or an
authorized representative, shall be conducted as a nonadversarial, confidential, investigatory
proceeding as necessary for the resolution of any inconsistencies, discrepancies, or disputed
issues apparent upon the face of the filed examination report or indicated as a result of the
commissioner’s review of relevant work papers or by the written submission or rebuttal of
the company. Within twenty days of the conclusion of any such hearing, the commissioner
shall enter an order pursuant to subsection 3, paragraph “a”.

(1) (a) The commissioner shall not appoint an examiner as an authorized representative
to conduct the hearing. The hearing shall proceed expeditiously with discovery by the
company limited to the examiner’s work papers which tend to substantiate any assertions
set forth in any written submission or rebuttal. The commissioner or a representative acting
on the commissioner’s behalf may issue subpoenas for the attendance of any witnesses or
the production of any documents deemed relevant to the investigation whether under the
control of the division of insurance, the company, or other persons. The documents produced
shall be included in the record and testimony taken by the commissioner or a representative
acting on the commissioner’s behalf shall be under oath and preserved for the record.
(b) This section does not require the division of insurance to disclose any information
or records which would indicate or show the existence of any investigation or activity of a
criminal or juvenile justice agency.
(2) The hearing shall proceed with the commissioner or the commissioner’s
representative posing questions to the persons subpoenaed. Thereafter the company and
the division may present testimony relevant to the investigation. Cross-examination shall be
conducted only by the commissioner or the commissioner’s representative. The company
and the division shall be permitted to make closing statements and may be represented by
counsel.
5. Publication and use.
a. Upon the adoption of the preliminary examination report under subsection 3,
paragraph “a”, the commissioner shall hold the content of the final examination report as
private and confidential information not subject to disclosure and it is not a public record
under chapter 22, for a period of twenty days except to the extent provided in subsection
2. After the twenty-day period has elapsed, the commissioner may open the final report for
public inspection so long as no court of competent jurisdiction has stayed its publication.
b. The commissioner is not prevented from disclosing the content of an examination
report, preliminary examination report or results, or any matter relating to the report, to an
insurance department of any other state or country, to the national association of insurance
commissioners, or to law enforcement officials of this or any other state or an agency of the
federal government at any time, so long as such agency or office receiving the report, or
matters relating to the report, agrees in writing to maintain the confidentiality of the report
or such matters in a manner consistent with this chapter.
c. If the commissioner determines that regulatory action is appropriate as a result of any
examination, the commissioner may initiate any proceeding or action as provided by law.

Legislative History

[S13, §1821-d; C24, 27, 31, 35, 39, §8634; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §507.10]