(1)Upon determining that an examination should
be conducted, the director or his or her designee shall appoint one or more
examiners to conduct the examination and instruct 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 director may also
employ such other guidelines or procedures as the director may deem appropriate.
(2)(a) Every company or person from whom information is sought and its
officers, directors, employees, and agents shall provide to the examiners
appointed under subsection (1) of this section timely, convenient, and free
access to all books, records, accounts, papers, documents, and compute
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 director or his or her designee shall appoint one or more
examiners to conduct the examination and instruct 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 director may also
employ such other guidelines or procedures as the director may deem appropriate.
(2)(a) Every company or person from whom information is sought and its
officers, directors, employees, and agents shall provide to the examiners
appointed under subsection (1) of this section timely, convenient, and free
access to all books, records, accounts, papers, documents, and computer or
other recordings relating to the property, assets, business, and affairs of
the company being examined.
(b)(i)(A) Every company or person subject to the Insurers Examination
Act shall retain all books, records, accounts, papers, documents, and computer
or other recordings relating to the property, assets, financial accounts,
and business of such company or person in a manner that permits examination
of such books, records, accounts, papers, documents, and computer or other
recordings for five years, or until the period
of time in which the transaction took place has undergone a financial examination
by the director, whichever is later, following the completion of a transaction
relating to the property, assets, financial accounts, and business of such
company or person.
(B) Every company or person subject to the act shall retain market conduct
records for five years following the completion
of a transaction relating to the insurance business and affairs of such company
or person. For purposes of this subdivision, market conduct records means
all books, records, accounts, papers, documents, and computer or other recordings
relating to transactions with insureds, certificate holders, claimants, insurance
producers, other insurers, subrogees, and subrogors and recordings related
to its trade practices, underwriting, rate and form practices, advertising,
regulatory matters, and other affairs of such company or person.
(ii) The books, records, accounts, papers, documents, and computer or
other recordings described in subdivisions (2)(b)(i)(A) and (B) of this section
and maintained in electronic, computer, micrographic, or other form shall
be maintained in a form capable of accurate duplication on paper.
(c) The officers, directors, employees, and agents of the company or
person shall 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, or agents, to submit to examination or to comply with
any reasonable written request of the examiners shall be 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 director's jurisdiction.
Any such proceedings for suspension, revocation, or refusal of any license
or authority shall be conducted pursuant to the Administrative Procedure Act.
(d) For purposes of this subsection, officers, directors, employees,
and agents shall include general agents, managing agents, attorneys in fact,
organizers, promoters, loss adjusters, and any persons having a contract,
written or oral, pertaining to the management or control of a company or any
function thereof.
(3) The director or any of his or her examiners shall 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 director 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. He or she shall be entitled to
the same fees and mileage, if claimed, as a witness in the district court
with mileage to be computed at the rate provided in section 81-1176 , 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) When conducting an examination under the Insurers Examination Act,
the director may retain attorneys, appraisers, independent actuaries, independent
certified public accountants, loss-reserve specialists, or other professionals
and specialists, the cost of which shall be borne by the company which is
the subject of the examination.
(5) Nothing in the act shall be construed to limit the director'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 shall be prima facie
evidence in any legal or regulatory action.
(6) Nothing contained in the act shall be construed to limit the director'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
director may, in his or her sole discretion, deem appropriate.