1. For the purpose of determining its financial condition, fulfillment of its contractual obligations and compliance with law, the Commissioner shall, as often as he or she deems advisable, examine the affairs, transactions, accounts, records and assets of each authorized insurer, and of any person as to any matter relevant to the financial affairs of the insurer or to the examination. Except as otherwise expressly provided in this title, the Commissioner shall so examine each authorized insurer not less frequently than every 5 years. In scheduling and determining the nature, scope and frequency of the examinations, the Commissioner shall consider:
(a) The results of any analysis of any applicable financial statement;
(b) Any change in management or ownership of the insurer;
(c) Any applicable actuarial opinion or summary;
(d) Any applicable report of an independent certified public accountant; and
(e) Any other applicable criteria set forth in the most recent edition of the Financial Condition Examiners Handbook, published by the NAIC, and the most recent edition of the Market Regulation Handbook, published by the NAIC, which are in effect when the Commissioner exercises his or her discretion pursuant to this section.
2. In examining an insurer pursuant to this section, the Commissioner may examine or investigate any person, or the business of any person, if the examination or investigation is, in the sole discretion of the Commissioner, necessary or material to the examination of the insurer.
3. Examination of an alien insurer must be limited to its insurance transactions, assets, trust deposits and affairs in the United States, except as otherwise required by the Commissioner.
4. The Commissioner shall in like manner examine each insurer applying for an initial certificate of authority to transact insurance in this state.
5. In lieu of an examination under this chapter, the Commissioner may accept a report of the examination of a foreign or alien insurer prepared by the Division for a foreign insurer’s state of domicile or an alien insurer’s state of entry into the United States.
6. As far as practical the examination of a foreign or alien insurer must be made in cooperation with the insurance supervisory officers of other states in which the insurer transacts business.
(Added to NRS by 1971, 1567; A 1995, 1750; 2017, 61)