1.Thecommissionermayconductanexaminationunderthischapterofanysellerasoften
asthecommissionerdeemsappropriate. Ifasellerhasatrustarrangement,thecommissioner
shall conduct an examination of such seller doing business in this state not less than once
every five years unless the seller has provided to the commissioner, on an annual basis, a
certified copy of an audit conducted by an independent certified public accountant verifying
compliance with this chapter. The commissioner may require an audit of a seller, or other
person by a certified public accountant to verify compliance with the requirements of this
chapter, including rules adopted and orders issued pursuant to this chapter.
2.A seller shall reimburse the division for the expense of conducting the examination,
including an audit co
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1. Thecommissionermayconductanexaminationunderthischapterofanysellerasoften
asthecommissionerdeemsappropriate. Ifasellerhasatrustarrangement,thecommissioner
shall conduct an examination of such seller doing business in this state not less than once
every five years unless the seller has provided to the commissioner, on an annual basis, a
certified copy of an audit conducted by an independent certified public accountant verifying
compliance with this chapter. The commissioner may require an audit of a seller, or other
person by a certified public accountant to verify compliance with the requirements of this
chapter, including rules adopted and orders issued pursuant to this chapter.
2. A seller shall reimburse the division for the expense of conducting the examination,
including an audit conducted by a certified public accountant, unless the commissioner
waives this requirement, or the seller has previously provided to the commissioner a
certified copy of an audit conducted by an independent certified public accountant verifying
compliance with this chapter for each year in question and the examination conducted by
the commissioner does not disclose that the seller has not complied with this chapter for the
years in question. The expense of an examination involving multiple sellers or other persons
shallbeproratedamongthemuponanyreasonablebasisasdeterminedbythecommissioner.
3. For purposes of completing an examination under this chapter, the commissioner
may examine or investigate any person, or the business of any person, if the examination
or investigation is, in the sole discretion of the commissioner, necessary or material to the
examination of the seller.
§523A.206, CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES 8
4. Upon determining that an examination should be conducted, the commissioner may
appoint one or more examiners to perform the examination and instruct those examiners as
to the scope of the examination.
5. A seller, or other person from whom information is sought, and its officers, directors,
employees, and agents shall provide to the examiners appointed under subsection 4, timely,
convenient, and free access at their offices, at all reasonable hours, to all books, records,
accounts, papers, documents, and all electronic or other recordings related to the property,
assets, business, and affairs of the seller being examined and shall facilitate the examination
as much as possible.
a. The refusal of a seller, by its officers, directors, employees, or agents, to submit to an
examination or to comply with a reasonable written request of an examiner shall constitute
grounds for the suspension, revocation, or denial of an application to renew any license held
by the seller to engage in business subject to the commissioner’s jurisdiction.
b. If a seller declines or refuses to submit to an examination as provided in this chapter,
the commissioner shall immediately suspend, revoke, or deny an application to renew any
license held by the seller or business to engage in business subject to the commissioner’s
jurisdiction, and shall report the commissioner’s action to the attorney general, who shall
immediately apply to the district court for the appointment of a receiver to administer the
final affairs of the seller.
6. All records maintained by the commissioner under this section, including work papers,
notes, recorded information, documents, and copies thereof that are produced or obtained
by or disclosed to the commissioner or another person in the course of a compliance
examination, shall be confidential pursuant to section 22.7, subsection 58, and shall not be
made available for inspection and copying except upon the approval of the commissioner
or the attorney general. Such records shall be privileged and confidential in any judicial or
administrative proceeding except any of the following:
a. An action commenced by the commissioner.
b. An administrative proceeding brought by the insurance division.
c. An action or proceeding which arises out of the criminal provisions of the laws of this
state or of the United States.
d. An action brought by the insurance division or the attorney general to recover moneys
for embezzlement, misappropriation, or misuse of trust funds.
7. This section shall not be construed to limit the commissioner’s authority to terminate
or suspend any examination in order to pursue other legal or regulatory actions pursuant to
this chapter. Findings of fact and conclusions made pursuant to an examination are deemed
to be prima facie evidence in any legal or regulatory action.