31A-37-502 - Examination.
31A-37-502. Examination.
(1) (a) As provided in this section, the commissioner or a person appointed by thecommissioner, shall examine each captive insurance company in each three-year period.
(b) The three-year period described in Subsection (1)(a) shall be determined on the basisof three full annual accounting periods of operation.
(c) The examination is to be made as of:
(i) December 31 of the full three-year period; or
(ii) the last day of the month of an annual accounting period authorized for a captiveinsurance 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 wheneverthe commissioner determines it to be prudent.
(2) During an examination under this section the commissioner, or a person appointed bythe commissioner, shall thoroughly inspect and examine the affairs of the captive insurancecompany 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 captiveinsurance company; and
(c) whether the captive insurance company has complied with this chapter.
(3) The commissioner upon application may enlarge the three-year period described inSubsection (1) to five years, if a captive insurance company is subject to a comprehensive annualaudit during that period:
(a) of a scope satisfactory to the commissioner; and
(b) performed by independent auditors approved by the commissioner.
(4) The commissioner may accept a comprehensive annual independent audit in lieu ofan examination:
(a) of a scope satisfactory to the commissioner; and
(b) performed by an independent auditor approved by the commissioner.
(5) A captive insurance company that is inspected and examined under this section shallpay, as provided in Subsection 31A-37-202(6)(b), the expenses and charges of an inspection andexamination.
Amended by Chapter 349, 2009 General Session