Examination

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  • (a) Subject to the limitation contained in this section and in addition to the powers which the Commissioner has under chapters 3 and 5 of this title relating to the examination of insurers, the Commissioner has the power to examine any insurer registered under section 325 and its affiliates to ascertain the financial condition of the insurer, including the enterprise risk to the insurer by the ultimate controlling party, or by any entity or combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis.

  • (b)

    • (1) The Commissioner may order any insurer registered under section 325 to produce such records, books, or other information papers in the possession of the insurer or its affiliates as are reasonably necessary to determine compliance with this chapter.

    • (2) To determine compliance with this chapter, the Commissioner may order any insurer registered under section 325 to produce information not in the possession of the insurer if the insurer can obtain access to such information pursuant to contractual relationships, statutory obligations, or other method. If the insurer cannot obtain the information requested by the Commissioner, the insurer shall provide the Commissioner a detailed explanation of the reason that the insurer cannot obtain the information and the identity of the holder of information. Whenever it appears to the Commissioner that the detailed explanation is without merit, the Commissioner may require, after notice and hearing, the insurer to pay a maximum penalty of $5,000, or may suspend or revoke the insurer’s license.

  • (c) The Commissioner may hire at the registered insurer’s expense such attorneys, actuaries, accountants and other experts not otherwise a part of the Commissioner’s staff as are reasonably necessary to assist in the conduct of the examination under subsection (a). Any persons so retained is under the direction and control of the Commissioner and shall act in a purely advisory capacity.

  • (d) Each registered insurer producing for examination records, books and papers pursuant to subsections (a) and (b) are liable for and shall pay the expense of examination in accordance with chapter 5, section 106 of this title.

  • (e) If the insurer fails to comply with an order, the Commissioner may examine the affiliates to obtain the information. The Commissioner also may issue subpoenas, to administer oaths, and to examine under oath any person for purposes of determining compliance with this section. Upon the failure or refusal of any person to obey a subpoena, the Commissioner may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. Failure to obey the court order is punishable as contempt of court. Every person is obliged to attend as a witness at the place specified in the subpoena, when subpoenaed, anywhere within the Territory. A person is entitled to the same fees and mileage, if claimed, as a witness in any court of competent jurisdiction in the Territory, and fees, mileage, and actual expense, if any, necessarily incurred in securing the attendance of witnesses, and their testimony must be itemized and charged against, and be paid by, the company being examined.


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