§ 27-35-5. Examination.
(a) Power of commissioner. Subject to the limitation contained in this section and in addition to the powers
the commissioner has under other sections of this title relating to the examination
of insurers, the commissioner shall have the power to examine any insurer registered
under § 27-35-3 and its 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.
(b) Access to books and records.
(1) The commissioner may order any insurer registered under § 27-35-3 to produce records, books, or other information papers in the possession of the insurer
or its affiliates as are reasonably necessary to determine compliance with this chapter.
(2) To determine compliance with this chapter, the commissioner may order any insurer
registered under § 27-35-3 to produce information not in the possession of the insurer if the insurer can obtain
access to such information pursuant to contractual relationships, statutory obligations,
or other method. In the event the insurer cannot obtain the information requested
by the commissioner, the insurer shall provide the commissioner a detailed explanation
of the reason that the insurer cannot obtain the information and the identity of the
holder of information. Whenever it appears to the commissioner that the detailed explanation
is without merit, the commissioner may require, after notice and hearing, the insurer
to pay a penalty for each day's delay, or may suspend or revoke the insurer's license.
(c) Use of consultants. The commissioner may retain at the registered insurer's expense attorneys, actuaries,
accountants, and other experts not otherwise a part of the commissioner's staff as
shall be reasonably necessary to assist in the conduct of the examination under subsection
(a) of this section. Any persons so retained shall be under the direction and control
of the commissioner and shall act in a purely advisory capacity.
(d) Expenses. Each registered insurer producing for examination records, books, and papers pursuant
to subsection (a) of this section shall be liable for and shall pay the expense of
the examination in accordance with applicable laws of this state.
(e) Compelling production. In the event the insurer fails to comply with an order, the commissioner shall have
the power to examine the affiliates to obtain the information. The commissioner shall
also have the power to issue subpoenas, to administer oaths, and to 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 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 superior court of this state, 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.