(1) The commissioner or the commissioner's designee may conduct an examination of
any company as often as the commissioner, in the commissioner's sole discretion, deems
appropriate but shall, at a minimum, conduct a formal financial examination of every
insurer licensed in this state not less frequently than once every five years; except
that this does not include eligible nonadmitted insurers regulated in accordance with
article 5 of this title 10. In scheduling financial examinations and in determining their nature, scope, and
frequency, the commissioner shall consider matters such as the results of financial
statement analyses and ratios, changes in management or ownership, actuarial opinions,
reports of independent certified public accountants, and other criteria as set forth
in the most recent available edition of the examiners' handbook adopted by the national
association of insurance commissioners.
(2) For purposes of completing an examination of any company under this part 2, the
commissioner may examine or investigate any person or the business of any person insofar
as such examination or investigation is, in the sole discretion of the commissioner,
necessary or material to the examination of the company.
(3) In lieu of a financial examination under this part 2 of any foreign or alien insurer
licensed in this state, the commissioner may accept an examination report on the company
as prepared by the insurance department for the company's state of domicile or port-of-entry
state; except that such reports may only be accepted if:
(a) The insurance department was, at the time of the examination, accredited under
the national association of insurance commissioners' financial regulation standards
and accreditation program; or
(b) The examination is performed under the supervision of an accredited insurance
department or with the participation of one or more examiners who are employed by
such an accredited state insurance department and who, after a review of the examination
work papers and report, state under oath that the examination was performed in a manner
consistent with the standards and procedures required by the examiners' insurance
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