§ 31A-37-502 — Examination.

(1) (1)(a) As provided in this section, the commissioner, or a person appointed by the commissioner, may examine each captive insurance company at least once every five years, or more frequently if the commissioner determines a more frequent examination is prudent.
(1)(b) The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation.
(1)(c) The examination is to be made as of:
(1)(c)(i) December 31 of the full five-year period; or
(1)(c)(ii) the last day of the month of an annual accounting period authorized for a captive insurance company under this section.
(2) During an examination under this section the commissioner, or a person appointed by the commissioner, shall thoroughly inspect and examine the affairs of the captive insurance company to ascertain all or any combination of the following:
(2)(a) the financial condition of the captive insurance company;
(2)(b) the ability of the captive insurance company to fulfill the insurance policy obligations of the captive insurance company; and
(2)(c) whether the captive insurance company has complied with this chapter.
(3) A captive insurance company that is inspected and examined under this section shall pay, as provided in Subsection 31A-37-201(6)(b), the expenses and charges of an inspection and examination.

Legislative History

Amended by Chapter 120, 2024 General Session