(a) General description. All examination reports shall be comprised of only facts appearing upon the books, records, or other documents of the company, its agents or other persons examined, or as ascertained from the testimony of its officers or agents or other persons examined concerning its affairs, and such conclusions and recommendations as the examiners find reasonably warranted from the facts.
(b) Filing of examination report. Not later than 60 days following completion of the examination, the examiner in charge shall file with the Division, a verified written report of examination under oath. Upon receipt of the verified report, the Division shall transmit the report to the company examined, together with a notice which shall afford the company examined a reasonable opportunity of not more than 30 days to make a written submission or rebuttal with respect to any matters contained in the examination report.
(c) Adoption of report on examination. Within 30 days of the end of the period allowed for the receipt of written submissions or rebuttals, the Commissioner shall fully consider and review the report, together with any written submissions or rebuttals and any relevant portions of the examiner's workpapers and enter an order:
(1) Adopting the examination report as filed or with modification or corrections. If the examination report reveals that the company is operating in violation of any law, regulation or prior order of the Commissioner, the Commissioner may order the company to take any action the Commissioner considers necessary and appropriate to cure such violation; or
(2) Rejecting the examination report with directions to the examiners to reopen the examination for purposes of obtaining additional information, and refiling pursuant to subsection (b) of this section; or
(3) Calling for an investigatory hearing with not less than 20 days notice to the company for purposes of obtaining additional documentation, data, information and testimony.
(d) Orders and procedures.
(1) All orders entered pursuant to subsection (c)(1) of this section shall be accompanied by findings and conclusions resulting from the Commissioner's consideration and review of the examination report, relevant examiner work papers and any written submissions or rebuttals. Any such order shall be considered a final administrative decision and may be appealed pursuant to chapter 7, section 160 of this title, and shall be served upon the company by certified mail, together with a copy of the adopted examination report. Within 30 days of the issuance of the adopted report, the company shall file affidavits executed by each of its directors stating under oath that they have received a copy of the adopted report and related orders.
(2) Any hearing conducted under subsection (c)(3) of this section by the Commissioner, or his designee, shall be conducted as a nonadversarial, confidential investigatory proceeding as necessary for the resolution of any inconsistencies, discrepancies or disputed issues apparent upon the face of the filed examination report or raised by, or as a result of, the Commissioner's review of relevant work papers or by the written submission or rebuttal of the company. Within 20 days of the conclusion of any such hearing, the Commissioner shall enter an order pursuant to subsection (c)(1) of this section.
(A) The Commissioner shall not appoint an examiner as an authorized representative to conduct the hearing. The hearing shall proceed expeditiously with discovery by the company limited to the examiner's workpapers which tend to substantiate any assertions set forth in any written submission or rebuttal. The Commissioner, or his designee, may issue subpoenas for the attendance of any witness or for the production of any documents deemed relevant to the investigation, whether under the control of the Division, the company or other persons. The documents produced shall be included in the record and testimony taken by the Commissioner, or his representative, and shall be under oath and preserved for the record.
Nothing contained in this section shall require the Division to disclose any information or records which would indicate or show the existence or content of any investigation or activity of a law enforcement agency.(B) The hearing shall proceed with the Commissioner or his designee posing questions to the persons subpoenaed. Thereafter, the company and the Division may present testimony relevant to the investigation. Cross examination shall be conducted only by the Commissioner or his designee. The company and the Division shall be permitted to make closing statements and may be represented by counsel of their choice.
(e) Publication and use.
(1) Upon the adoption of the examination report under subsection (c)(1) of this section, the Commissioner shall continue to hold the content of the examination as private and confidential information for a period of 30 days except to the extent provided in subsection (b) of this section. Thereafter, the Commissioner may open the report for public inspection so long as no court of competent jurisdiction has stayed its publication.
(2) Nothing contained in this code shall prevent or be construed as prohibiting the Commissioner from disclosing the content of an examination report, preliminary examination report, or any matter relating thereto, to the insurance department of any other state or country, or to law enforcement officials of the territory or any other state or agency of the federal government at any time, so long as such agency or office receiving the report or matters relating thereto agrees in writing to hold it confidential and in a manner consistent with this chapter.
(3) In the event the Commissioner determines that regulatory action is appropriate as a result of any examination, he may initiate any proceedings or actions as provided by law.
(f) Confidentiality of ancillary information. All working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the Commissioner or any other person in the course of an examination made under this chapter may be held by the Commissioner as a record not required to be made public pursuant to Title 3, section 881 of this code.