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(1)
(a) As provided in this section, the commissioner, or a person appointed by the commissioner, shall examine each captive insurance company in each five-year period.
(b) The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation.
(c) The examination is to be made as of:
(i) December 31 of the full five-year period; or
(ii) the last day of the month of an annual accounting period authorized for a captive insurance company under this section.
(d) In addition to an examination required under this Subsection (1), the commissioner, or a person appointed by the commissioner may examine a captive insurance company whenever the commissioner determines it to be prudent.
(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:
(a) the financial condition of the captive insurance company;
(b) the ability of the captive insurance company to fulfill the obligations of the captive insurance company; and
(c) whether the captive insurance company has complied with this chapter.
(3) The commissioner may accept a comprehensive annual independent audit in lieu of an examination:
(a) of a scope satisfactory to the commissioner; and
(b) performed by an independent auditor approved by the commissioner.
(4) 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.