1.Upon determining that an examination should be conducted, the commissioner or the
commissioner's designee shall issue a letter appointing one or more examiners to
perform the examination and instructing them as to the scope of the examination. In
conducting the examination, the examiner shall observe those guidelines and
procedures set forth in the examiners' handbook adopted by the national association
of insurance commissioners. The commissioner may also employ other guidelines or
procedures as the commissioner may deem appropriate.
2.For the purposes of making any examination required or authorized by law, every
company or person from whom information is sought, its officers, directors, trustees,
and agents must provide to the examiners appointed under subsection 1, in any
examinati
Free access — add to your briefcase to read the full text and ask questions with AI
1. Upon determining that an examination should be conducted, the commissioner or the
commissioner's designee shall issue a letter appointing one or more examiners to
perform the examination and instructing them as to the scope of the examination. In
conducting the examination, the examiner shall observe those guidelines and
procedures set forth in the examiners' handbook adopted by the national association
of insurance commissioners. The commissioner may also employ other guidelines or
procedures as the commissioner may deem appropriate.
2. For the purposes of making any examination required or authorized by law, every
company or person from whom information is sought, its officers, directors, trustees,
and agents must provide to the examiners appointed under subsection 1, in any
examination required or authorized by law, timely, convenient, and free access at all
reasonable hours at its offices to all books, records, accounts, papers, documents, and
any or all computer or other recordings relating to the property, assets, business, and
affairs of the company being examined. The officers, directors, employees, trustees,
and agents of the company or person must facilitate the examination and aid in the
examination so far as it is in their power to do so. The refusal of any company, by its
officers, directors, employees, trustees, or agents to submit to examination or to
comply with any reasonable request of the examiners is grounds for suspension or
refusal of, or nonrenewal of, any license or authority held by the company to engage in
an insurance or other business subject to the commissioner's jurisdiction. Any
proceedings for suspension, revocation, or refusal of any license or authority must be
conducted pursuant to sections 26.1-01-03.1 and 26.1-11-09.
3. The commissioner or any of the commissioner's examiners have the power to issue
subpoenas, to administer oaths, and to examine under oath any person as to any
matter pertinent to the examination. 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.
4. Qualified regular employees of the commissioner, or the commissioner's designated
representatives acting as independent contract examiners under the direction of
regular employees of the commissioner, shall conduct all examinations of an insurance
company required or permitted by law to be conducted by the commissioner, whether
or not the examinations are convention examinations called in accordance with rules
promulgated by the national association of insurance commissioners. The
commissioner may contract for and procure the services of financial and market
conduct examiners and other or additional specialized technical or professional
assistants, as independent contractors. None of the persons providing those services
or assistance on a contract or fee basis may be in the classified service of the state.
5. Nothing contained in this chapter may be construed to limit the commissioner's
authority to terminate or suspend any examination in order to pursue other legal or
regulatory action pursuant to the insurance laws of this state. Findings of fact and
conclusions made pursuant to any examination will be prima facie evidence in any
legal or regulatory action by and before the insurance commissioner.
6. Except as provided in subsections 5 and 6 of section 26.1-03-19.4, nothing contained
in this chapter may be construed to limit the commissioner's authority to use and, if
appropriate, to make public any final or preliminary examination report, any examiner
or company workpapers or other documents, or any other information discovered or
developed during the course of any examination in the furtherance of any legal or
regulatory action which the commissioner may, in the commissioner's sole discretion,
deem appropriate.