§ 521A.6 — Examination — penalties — expenses

Iowa § 521A.6

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 521A: INSURANCE HOLDING COMPANY SYSTEMS

Text

1. Power of commissioner. Subject to the limitation contained in this section and in
addition to the powers which the commissioner has under chapter 507 relating to the
examination of insurers, the commissioner shall have the power to examine any insurer
registered under section 521A.4 and its affiliates to ascertain the financial condition of the
insurer, including the enterprise risk to the insurer by the ultimate controlling party, or 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 — penalty.
a. The commissioner may order an insurer registered under section 521A.4 to produce
records, books, or other information papers in the possession of the insurer or its affiliates
as reasonably necessary or to determine compliance with this chapter.
b. To determine compliance with this chapter, the commissioner may order any insurer
registered under section 521A.4 to produce information not in the possession of the insurer
if the insurer can obtain access to such information pursuant to a contractual relationship,
statutory obligation, or other method. In the event 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. Whenever it appears to the commissioner that the detailed
explanation is without merit, the commissioner may require, after notice and hearing, the
insurer to pay a penalty of five hundred dollars for each day’s delay, or may suspend or
revoke the insurer’s certificate of authority.
15 INSURANCE HOLDING COMPANY SYSTEMS, §521A.6A
3. Compelling production. In the event the insurer fails to comply with an order, the
commissioner shall have the power to examine the affiliates to obtain the information. The
commissioner shall also have the power to issue subpoenas, to administer oaths, and to
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 shall be punishable as contempt of court. Every person shall be obliged
to attend as a witness at the place specified in the subpoena, when subpoenaed, anywhere
within the state. Such a person shall be entitled to the same fees and mileage, if claimed,
as a witness in district court, which fees, mileage, and actual expense, if any, necessarily
incurred in securing the attendance of witnesses, and their testimony, shall be itemized and
charged against, and be paid by, the company being examined.
4. Use of consultants. 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 shall be reasonably necessary to assist in the conduct of the
examination under subsection 1, 2, or 3. Any persons so retained shall be under the direction
and control of the commissioner and shall act in a purely advisory capacity.
5. Expenses. Each registered insurer producing for examination records, books, and
papers pursuant to subsection 1, 2, or 3 shall be liable for and shall pay the expense of such
examination in accordance with section 507.7.

Legislative History

[C71, 73, 75, 77, 79, 81, §521A.6]