§ 27-43-6. Reports, statements, examinations, and investigations.
(a) Captive insurance companies shall annually file a statement of condition as provided
in § 27-12-1; provided, that the commissioner may by regulation modify the required filing and
content of the statements of captive insurance companies. Captive insurance companies
are also subject to the further provisions of chapter 12 of this title; provided,
that statements filed pursuant to this section, except for those reports filed by
industrial insured captive insurance companies insuring the risks of industrial insured
groups as defined in § 27-43-1(8)(ii), are not subject to the public inspection provisions of § 27-12-1(b).
(b) The commissioner, either personally or by a committee appointed by him or her, consisting
of one or more persons not directors or officers of any captive insurance company
doing business in this state, may, at any time, examine the affairs of any captive
insurance company incorporated by or doing business in this state. The officers of
the company shall exhibit its books to the commissioner or committee, and facilitate
the examination, and the commissioner or the committee may examine, under oath, the
officers of the company in relation to its affairs, and the commissioner shall, if
he or she deems it advisable, publish the result of the investigation in one or more
newspapers published in the state. The total cost of the examinations shall be borne
by the examined companies and shall be one hundred fifty percent (150%) of the total
salaries paid to the examining personnel of the insurance division engaged in the
examinations, less any salary reimbursements, and shall be paid to the commissioner
to and for the use of the insurance division. The assessment shall be in addition
to any taxes and fees payable to the state.
(c) Whenever it shall appear to the commissioner, from the statements, or from an examination
of the affairs of any captive insurance company, that the company is insolvent, or
is in an unsound financial condition, or that its business policies are unsound or
improper, or that its condition or management is such as to render its further transaction
of business hazardous to the public or its policyholders, or that the amount of its
funds, net cash, or contingent assets is deficient, or that its capital is impaired,
or that it is conducting its business fraudulently or refuses or neglects to comply
with the laws of the state relating to captive insurance companies, it shall be the
duty of the commissioner, after notice and hearing, to revoke the license issued to
the company and the licenses issued to all of its insurance producers, or he or she
may revoke the licenses or suspend them for a period not exceeding the unexpired terms
of the licenses.