38.2-1317 - Examinations; when authorized or required.
§ 38.2-1317. Examinations; when authorized or required.
A. Whenever the Commission considers it expedient for the protection of theinterests of the people of this Commonwealth, it may make or direct to bemade an examination into the affairs of any person licensed to transact anyinsurance business in this Commonwealth or any other person subject to thejurisdiction of the Commission pursuant to provisions of this title. TheCommission may also make or direct to be made, whenever necessary oradvisable an examination into the affairs of:
1. Any person having a contract under which he has the exclusive or dominantright to manage or control any licensed insurer,
2. Any person holding the shares of capital stock or policyholder proxies ofany domestic insurer amounting to control as defined in § 38.2-1322 either asvoting trustee or otherwise,
3. Any person engaged or assisting in, or proposing or claiming to engage orassist in the promotion or formation of a domestic insurer, or
4. Any person seeking a license to transact any insurance business in thisCommonwealth.
B. The Commission shall examine or cause to be examined every domesticinsurer at least once in every five years; however, on or after January 1,1993, the Commission shall examine every insurer licensed in thisCommonwealth at least once in every five years.
C. The examination of any foreign or alien insurer or any other foreign oralien person subject to examination shall be made to the extent practicablein cooperation with the insurance departments of other states.
D. Instead of making its own examination, the Commission may accept a fullreport of the examination of a foreign or alien person, duly authenticated bythe insurance supervisory official of the state of domicile or of entry untilJanuary 1, 1994. Thereafter, such reports may only be accepted if:
1. The insurance department was at the time of the examination accreditedunder the National Association of Insurance Commissioners' (NAIC) FinancialRegulation Standards and Accreditation Program;
2. The examination is performed under the supervision of such an accreditedinsurance department or with the participation of one or more examiners whoare employed by an accredited insurance department and who, after a review ofthe examination work papers and report, state under oath that the examinationwas performed in a manner consistent with the standards and proceduresrequired by their insurance department; or
3. The Commission determines, in its sole discretion, that the examinationwas performed in a manner consistent with standards and procedures employedby the Commission in the examination of domestic insurers, and the report ofexamination is duly authenticated by the insurance supervisory official ofthe insurer's state of domicile or entry.
(Code 1950, §§ 38-125, 38-126, 38-216, 38-253.40, 38-253.86, 38-516; 1952, c.317, § 38.1-174; 1972, c. 836; 1973, c. 504; 1977, c. 321; 1986, c. 562;1992, c. 588; 1996, c. 47.)