§ 26.1-10-06 — Examination

North Dakota § 26.1-10-06

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-10: Insurance Holding Company Systems

Text

1. Subject to the limitations contained in this section and in addition to the powers which
the commissioner has relating to the examination of insurers, the commissioner may
examine any insurer registered under section 26.1-10-04 and the insurer's 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. The commissioner may order any insurer registered under section 26.1-10-04 to
produce any record, book, or other information paper in the possession of the insurer
or its affiliates necessary to determine compliance with this chapter.
3. To determine compliance with this chapter, the commissioner may order any insurer
registered under section 26.1-10-04 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. If the insurer cannot
obtain the information requested by the commissioner, the insurer shall provide the
commissioner a detailed explanation of the reason the insurer cannot obtain the
information and the identity of the holder of the information. If the commissioner
determines the detailed explanation is without merit, the commissioner may require,
after notice and hearing, the insurer to pay a penalty of one thousand dollars for each
day's delay, or may suspend or revoke the insurer's license.
4. The commissioner may retain at the registered insurer's expense any attorneys,
actuaries, accountants, and other experts, not otherwise a part of the commissioner's
staff, as are reasonably necessary to assist in the conduct of the examination under
subsection 1. Any persons so retained are under the direction and control of the
commissioner and shall act in a purely advisory capacity.
5. Each registered insurer producing any record, book, or other information paper for
examination pursuant to subsection 1 is liable for and shall pay the expense of the
examination.
6. If the insurer fails to comply with an order, the commissioner may examine the affiliates
to obtain the information. The commissioner may issue a subpoena, administer oaths,
and 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 is punishable as contempt of
court. When subpoenaed, a person shall attend as a witness at the place specified in
the subpoena, anywhere within the state. The witness is entitled to receive the same
fees and mileage as a witness in an administrative hearing or in district court, which
fees, mileage, and actual expense, if any, necessarily incurred in securing the
attendance of witnesses, and their testimony, must be itemized and charged against,
and be paid by, the insurer being examined.