§ 26.1-03-19.2 — Authority, scope, and scheduling of examinations

North Dakota § 26.1-03-19.2

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-03: Examinations, Reports, and Tax

Text

1. The commissioner or any of the commissioner's examiners may conduct an
examination under this chapter of any company whenever the commissioner in the
commissioner's sole discretion deems appropriate but shall at a minimum, conduct an
examination of every insurer licensed in this state not less frequently than once every
five years. In scheduling and determining the nature, scope, and frequency of the
examinations, the commissioner shall consider the matters 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 examiners' financial condition and market conduct handbook adopted by
the national association of insurance commissioners and in effect when the
commissioner exercises discretion under this section.
2. For purposes of completing an examination of any company under this chapter, the
commissioner may examine or investigate any person, or the business of any person,
insofar as the examination or investigation is, in the sole discretion of the
commissioner, necessary or material to the examination of the company.
3. In lieu of an examination under this chapter of any foreign 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
until January 1, 1994. Thereafter, the reports may only be accepted if 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 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 an accredited state insurance department and who, after a
review of the examination workpapers and report, state under oath that the
examination was performed in a manner consistent with the standards and procedures
required by their insurance department, or the commissioner finds that the
examination was performed by the insurance department of a state that was
previously accredited under the national association of insurance commissioners but
has lost its accreditation, provided that state's consumer protection laws are no less
protective than those present under North Dakota law.