2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507 - EXAMINATION OF INSURANCE COMPANIES
507.10 - EXAMINATION REPORTS.

        507.10  EXAMINATION REPORTS.
         1.  General description.  All examination reports shall be
      comprised only of facts appearing upon the books, records, or other
      documents of the company, its agents, or other persons examined, or
      as ascertained from the testimony of its officers or agents or other
      persons examined concerning its affairs, and such conclusions and
      recommendations as the examiners find reasonably warranted from the
      facts.
         2.  Filing of examination report.  No later than sixty days
      following completion of the examination, the examiner in charge shall
      file with the division a verified written report of examination.
      Upon receipt of the verified report and after administrative review,
      the division shall transmit the report to the company examined,
      together with a notice which shall afford the company examined a
      reasonable opportunity of not more than thirty days to make a written
      submission or rebuttal with respect to any matters contained in the
      examination report.
         3.  Adoption of report on examination.  Within twenty days of
      the end of the period allowed for the receipt of written submissions
      or rebuttals, the commissioner shall fully consider and review the
      report, together with any written submissions or rebuttals and any
      relevant portions of the examiner's work papers and enter an order
      which does one of the following:
         a.  Adopts the examination report as filed or with
      modification or corrections.  If the examination report reveals that
      the company is operating in violation of any law or a rule or prior
      order of the commissioner, the commissioner may order the company to
      take any action the commissioner considers necessary and appropriate
      to cure the violation.
         b.  Rejects the examination report with directions to the
      examiners to reopen the examination for purposes of obtaining
      additional data, documentation, or information, and refiling pursuant
      to subsection 1 above.
         c.  Calls for an investigatory hearing with no less than
      twenty days' notice to the company for purposes of obtaining
      additional documentation, data, information, and testimony.
         4.  Orders and procedures.
         a.  All orders entered pursuant to subsection 3, paragraph
      "a", shall be accompanied by findings and conclusions resulting
      from the commissioner's consideration and review of the examination
      report, relevant examiner work papers, and any written submissions or
      rebuttals.  Any such order is a final administrative decision and may
      be appealed pursuant to chapter 17A, and shall be served upon the
      company by certified mail, together with a copy of the adopted
      examination report.  Within thirty days of the issuance of the
      adopted report, the company shall file affidavits executed by each of
      its directors stating under oath that they have received a copy of
      the adopted report and related orders.
         b.  Any hearing conducted under subsection 3, paragraph
      "c", by the commissioner or an authorized representative, shall
      be conducted as a nonadversarial, confidential, investigatory
      proceeding as necessary for the resolution of any inconsistencies,
      discrepancies, or disputed issues apparent upon the face of the filed
      examination report or indicated as a result of the commissioner's
      review of relevant work papers or by the written submission or
      rebuttal of the company.  Within twenty days of the conclusion of any
      such hearing, the commissioner shall enter an order pursuant to
      subsection 3, paragraph "a".
         (1)  The commissioner shall not appoint an examiner as an
      authorized representative to conduct the hearing.  The hearing shall
      proceed expeditiously with discovery by the company limited to the
      examiner's work papers which tend to substantiate any assertions set
      forth in any written submission or rebuttal.  The commissioner or a
      representative acting on the commissioner's behalf may issue
      subpoenas for the attendance of any witnesses or the production of
      any documents deemed relevant to the investigation whether under the
      control of the division of insurance, the company, or other persons.
      The documents produced shall be included in the record and testimony
      taken by the commissioner or a representative acting on the
      commissioner's behalf shall be under oath and preserved for the
      record.
         This section does not require the division of insurance to
      disclose any information or records which would indicate or show the
      existence of any investigation or activity of a criminal or juvenile
      justice agency.
         (2)  The hearing shall proceed with the commissioner or the
      commissioner's representative posing questions to the persons
      subpoenaed.  Thereafter the company and the division may present
      testimony relevant to the investigation.  Cross- examination shall be
      conducted only by the commissioner or the commissioner's
      representative.  The company and the division shall be permitted to
      make closing statements and may be represented by counsel.
         5.  Publication and use.
         a.  Upon the adoption of the preliminary examination report
      under subsection 3, paragraph "a", the commissioner shall hold
      the content of the final examination report as private and
      confidential information not subject to disclosure and it is not a
      public record under chapter 22, for a period of twenty days except to
      the extent provided in subsection 2.  After the twenty-day period has
      elapsed, the commissioner may open the final report for public
      inspection so long as no court of competent jurisdiction has stayed
      its publication.
         b.  The commissioner is not prevented from disclosing the
      content of an examination report, preliminary examination report or
      results, or any matter relating to the report, to an insurance
      department of any other state or country, to the national association
      of insurance commissioners, or to law enforcement officials of this
      or any other state or an agency of the federal government at any
      time, so long as such agency or office receiving the report, or
      matters relating to the report, agrees in writing to maintain the
      confidentiality of the report or such matters in a manner consistent
      with this chapter.
         c.  If the commissioner determines that regulatory action is
      appropriate as a result of any examination, the commissioner may
      initiate any proceeding or action as provided by law.  

         Section History: Early Form

         [S13, § 1821-d; C24, 27, 31, 35, 39, § 8634; C46, 50, 54, 58,
      62, 66, 71, 73, 75, 77, 79, 81, § 507.10] 

         Section History: Recent Form

         92 Acts, ch 1117, § 5; 95 Acts, ch 191, §25; 2001 Acts, ch 69, §3;
      2006 Acts, ch 1117, §19
         Referred to in § 511.23