(a) Power of Insurance Commissioner. Subject to the limitation contained in this section and in addition to the powers of the Insurance Commissioner under § 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq. to examine insurers, the commissioner may examine an insurer registered under § 23-63-514 and the insurer's affiliates to ascertain the financial condition of the insurer, including the enterprise risk to the insurer by the ultimate controlling party, 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) Access to Books and Records. (1) The commissioner may order an insurer registered under § 23-63-514 to produce books, records, or other information in the possession of affiliates as reasonably necessary to determine the registered insurer's compliance with this subchapter.
(2) (A) In order to determine compliance with this subchapter, the commissioner may order an insurer registered under § 23-63-514 to produce information not in the possession of the insurer if the insurer can obtain access to the information under contractual relationships, statutory obligations, or other methods.
(B) (i) If the insurer is unable to produce the information requested by the commissioner, the insurer shall provide an acceptable explanation to the commissioner and identify the holder of the information.
(ii) However, if it appears to the commissioner that the insurer's explanation is without merit, the commissioner, after notice and a hearing, may:
(a) Require the insurer to pay a penalty of one hundred dollars ($100) per day until the commissioner receives the requested information; or
(b) Suspend or revoke the insurer's certificate of authority to transact business in this state.
(c) Use of Consultants. The commissioner may retain at the insurer's expense attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff as reasonably necessary to assist in an examination under subsection (a) of this section. Any person retained as a consultant shall be under the direction and control of the commissioner and shall act in an advisory capacity.
(d) Expenses. Each registered insurer producing for examination records, books, and papers under subsection (a) of this section shall be liable for and shall pay the expense of the examination in accordance with § 23-61-101 et seq., § 23-61-201 et seq., and § 23-61-301 et seq.
(e) Production. (1) (A) If an insurer fails to comply with an order of the commissioner, the commissioner may examine the insurer's affiliates to obtain the information.
(B) The commissioner may issue subpoenas, administer oaths, and examine under oath any person for purposes of determining compliance with this section.
(2) (A) Upon the failure or refusal of a person to obey a subpoena, the commissioner may petition a court of competent jurisdiction, and upon a proper showing, the court may enter an order compelling the witness to appear and testify or to produce documentary evidence.
(B) Failure to obey the court order is punishable as contempt of court.
(3) (A) When subpoenaed, a person shall attend as a witness at the place specified in the subpoena anywhere in this state.
(B) (i) A person under subpoena is entitled to the same fees and mileage as a witness in a civil action in a circuit court in this state.
(ii) In order to receive reimbursement for fees, mileage, and actual expenses, if any, necessarily incurred by a person under subpoena, the fees, mileage, and actual expenses shall be itemized, charged to, and paid by the insurer being examined.
Section: Previous 23-63-509 23-63-510 23-63-511 23-63-512 23-63-513 23-63-514 23-63-515 23-63-516 23-63-517 23-63-518 23-63-519 23-63-520 23-63-521 23-63-522 23-63-523 NextLast modified: November 15, 2016