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304.2-260 Examination reports -- Distribution -- Hearing -- Order of
commissioner -- Confidentiality -- Public inspection -- Regulatory action.
(1)
(2)
(3)
(4)
(5)
The commissioner shall deliver a copy of the examination report to the person
examined, together with a notice affording the person twenty (20) days or
additional reasonable period as the commissioner for good cause may allow
within which to review the report and recommend changes therein.
If so requested by the person examined, within the period allowed under
subsection (1) of this section, or if deemed advisable by the commissioner
without a request, the commissioner shall hold a hearing relative to the report
and shall not file the report in the department for public inspection until after the
hearing and his order thereon, except that the commissioner may furnish a
copy of the report to the Governor or Attorney General of the state pending
final decision thereon.
If no hearing has been requested or held, the commissioner shall fully consider
and review the report, together with any written submissions or rebuttals and
any relevant portions of the examiner's workpapers and enter an order within
sixty (60) days of the end of the period allowed under subsection (1) of this
section. The order of the commissioner shall:
(a) Adopt the examination report as filed or with modifications or corrections.
If the examination report reveals that the person is operating in violation
of or has violated any law, administrative regulation, or prior order of the
commissioner, the commissioner may order the person to take action to
cure the violations and impose penalties as the commissioner considers
necessary and appropriate; or
(b) Reject the examination report with directions to the examiners to reopen
the examination for purposes of obtaining additional data, documentation,
or information, and refiling as provided in KRS 304.2-250; or
(c) Call for a hearing for purposes of obtaining additional documentation,
data, information, and testimony.
Upon entry of the commissioner's order, the examination report, with
modifications, if any, thereof as the commissioner deems proper, shall be filed
in the department for public inspection, except that the commissioner may
withhold from public inspection any examination report for so long as he deems
the withholding to be necessary for the protection of the person examined
against unwarranted injury or to be in the public interest and except that the
commissioner shall withhold from public inspection any examination report of a
domestic insurer as provided in KRS 304.2-270.
An examination workpaper shall be deemed confidential information and shall
not be available for public inspection, except that the commissioner may in the
commissioner's discretion disclose an examination workpaper, the content of a
preliminary examination report, examination results, or any other matter
resulting to an examination report to the department of insurance of any other
state or country, or to the National Association of Insurance Commissioners, or
to law enforcement officials of this or any other state, or to an agency of this
state or any other state or the federal government at any time, if the agency or
office receiving the report or matters relating to the report agrees in writing to
hold the information confidential and in a manner consistent with this section.
(6)
(7)
(8)
(9)
The commissioner shall forward to the person examined a copy of the
examination report as filed for public inspection, together with the order of the
commissioner.
If the report concerns the examination of a domestic insurer, a copy of the
report, when filed for public inspection, or if withheld from public inspection in
accordance with KRS 304.2-270 or subsection (4) of this section, together with
the order of the commissioner, shall be presented by the insurer's chief
executive officer to the insurer's board of directors or similar governing body at
a meeting thereof which shall be held within ninety (90) days next following
receipt of the report and order. A copy of the report and order shall also be
furnished by the secretary of the insurer, if incorporated, or by the
attorney-in-fact if a reciprocal insurer, or Lloyd's plan insurer, to each member
of the insurer's board of directors or board of governors, if a reciprocal insurer,
or Lloyd's plan insurer, and the certificate of the secretary or attorney-in-fact,
which shall be filed promptly with the department, that a copy of the
examination report and order, has been so furnished shall be deemed to
constitute knowledge of the contents of the report and order by each member.
The report when so filed in the department shall be admissible in evidence in
any action or proceeding brought by the commissioner against the person
examined, or against its officers, employees, or agents. In any action or
proceeding brought by the commissioner, the commissioner or his examiners
may, however, at any time testify and offer proper evidence as to information
secured or matters discovered during the course of an examination, whether or
not a written report of the examination has been either made, furnished, or filed
in the department.
If the commissioner determines that regulatory action is appropriate as a result
of an examination, he or she may initiate any proceedings or actions provided
by law.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 943, effective July 15, 2010. -Amended 2008 Ky. Acts ch. 152, sec. 4, effective July 15, 2008. -- Amended
1994 Ky. Acts ch. 92, sec. 1, effective July 15, 1994. -- Created 1970 Ky. Acts
ch. 301, subtit. 2, sec. 26, effective June 18, 1970.
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