31A-16-108 - Examination of registered insurers.
31A-16-108. Examination of registered insurers.
(1) Subject to the limitation contained in this section and the powers which thecommissioner has under Chapter 2 relating to the examination of insurers, the commissioner hasthe power to order any insurer registered under Section 31A-16-105 to produce the records,books, or other informational papers in the possession of the insurer or its affiliates which thecommissioner considers necessary to ascertain the financial condition or legality of conduct of theinsurer. If an insurer fails to comply with this order, the commissioner may examine the affiliatesto obtain the information.
(2) The commissioner shall exercise his power under Subsection (1) only if theexamination of the insurer under Chapter 2 is inadequate, or the interests of the policyholders ofthe insurer may be adversely affected if the commissioner fails to exercise his power.
(3) The commissioner may retain, at the registered insurer's expense, attorneys, actuaries,accountants, and other experts not otherwise a part of the commissioner's staff, if they arenecessary to assist in the conduct of the examination under Subsection (1). Any persons soretained are under the direction and control of the commissioner and shall act in a purely advisorycapacity.
(4) Each registered insurer who produces records, books, and papers under Subsection(1) for examination is liable for and shall pay the expense of the examination under Section31A-2-205.
Enacted by Chapter 242, 1985 General Session