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304.2-210 Examination of insurers.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
As used in KRS 304.2-210 to 304.2-300, unless the context requires otherwise,
"examination workpaper" means a written or recorded document, note,
memorandum, critique, comment, recommendation, or other information
copied, established, created, or retained by the commissioner or his designee
for the purpose of conducting an examination or drafting an examination report.
For the purpose of determining financial condition, ability to fulfill and manner
of fulfillment of its obligations, the nature of its operations, and compliance with
law, the commissioner shall examine the affairs, transactions, accounts,
records, and assets of each authorized insurer as often as reasonably
necessary. He shall so examine each domestic insurer not less frequently than
every five (5) years. Examination of a reciprocal insurer may include
examination of its attorney-in-fact as to its transactions relating to the insurer.
Examination of an alien insurer may be limited to its insurance transactions and
affairs in the United States, except as the commissioner otherwise requires.
In scheduling and determining the nature, scope, and frequency of the
examinations, the commissioner shall consider 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 Examiner's Handbook prescribed by the
commissioner.
For purposes of completing an examination of an insurer, the commissioner
may examine or investigate any person or the business of any person, insofar
as the examination or investigation is, in the sole discretion of the
commissioner, necessary and material to the examination of the insurer.
The commissioner shall in like manner examine each insurer applying for an
initial certificate of authority to transact insurance in this state.
In lieu of making his own examination, the commissioner may, in his discretion,
accept a full report of the most recently completed examination of a foreign, or
alien, insurer, certified to by the insurance supervisory official of another state.
Reports shall only be accepted if the examination is performed under the
supervision of an accredited insurance department or with the participation of
one (1) or more examiners who are employed by 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 their insurance department.
As far as practical, the examination of a foreign or alien insurer shall be made
in cooperation with the insurance supervisory officers of other states in which
the insurer transacts business, and for the purpose thereof, the commissioner
may participate in joint examinations of insurers or be represented in an
examination by an examiner of another state.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 938, effective July 15, 2010; and
ch. 25, sec. 1, effective July 15, 2010. -- Amended 2008 Ky. Acts ch. 152,
sec. 1, effective July 15, 2008. -- Amended 1998 Ky. Acts ch. 483, sec. 4,
effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 496, sec. 3, effective July
15, 1994. -- Amended 1974 Ky. Acts ch. 308, sec. 51, effective June 21, 1974. --
Created 1970 Ky. Acts ch. 301, subtit. 2, sec. 21, effective June 18, 1970.
Legislative Research Commission Note (7/15/2010). A reference to the
"executive director" of insurance in subsection (3) of this section, as amended
by 2010 Ky. Acts ch. 25, sec. 1, has been changed in codification to the
"commissioner" of insurance to reflect the reorganization of certain parts of the
Executive Branch, as set forth in Executive Order 2009-535 and confirmed by
the General Assembly in 2010 Ky. Acts ch. 24. This change was made by the
Reviser of Statutes pursuant to 2010 Ky. Acts ch. 24, sec. 1938.
Legislative Research Commission Note (7/15/2010). This section was amended
by 2010 Ky. Acts chs. 24 and 25, which do not appear to be in conflict and have
been codified together.
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