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304.37-040 Examination by commissioner.
(1)
(2)
(3)
(4)
(5)
Subject to the limitation contained in this section and in addition to the powers
which the commissioner has under KRS Chapter 304 relating to the
examination of insurers, the commissioner shall also have the power to:
(a) Examine an insurer registered under KRS 304.37-020 and its affiliates to
ascertain the financial condition of the insurer, including the enterprise
risk, to the insurer by:
1.
The ultimate controlling party;
2.
Any entity or combination of entities within the insurance holding
company system; or
3.
The insurance holding company system on a consolidated basis;
(b) Order any insurer registered under KRS 304.37-020 to produce such
records, books, or other information in the possession of the insurer or its
affiliates as shall be necessary to determine compliance with this subtitle;
and
(c) Order any insurer registered under KRS 304.37-020 to produce
information not in the possession of the insurer if the insurer can obtain
access to the information pursuant to contractual relationships, statutory
obligations, or another method. In the event the insurer cannot obtain the
information requested by the commissioner, the insurer shall provide the
commissioner a detailed explanation of the reason that the insurer cannot
obtain the information and the identity of the holder of information. Failure
of the insurer to provide the information without good cause may result in
a civil penalty pursuant to KRS 304.99-020.
The commissioner shall exercise his or her power under subsection (1) of this
section only if the examination of the insurer under KRS Chapter 304 is
inadequate or the interests of the policyholders of such insurer may be
adversely affected.
The commissioner may retain at the registered insurer's expense such
attorneys, actuaries, accountants, and other experts not otherwise a part of the
commissioner's staff as shall be reasonably necessary to assist in the conduct
of the examination under subsection (1) of this section. Any persons so
retained shall be under the direction and control of the commissioner and shall
act in a purely advisory capacity.
Each registered insurer producing for examination records, books, and papers
pursuant to subsection (1) of this section shall be liable for and shall pay the
expense of such examination in accordance with the provisions of KRS
Chapter 304.
If the insurer fails to comply with an order, the commissioner shall have the
power to examine its affiliates to obtain the information, and may subpoena
witnesses in accordance with KRS 304.2-340.
Effective:July 12, 2012
History: Amended 2012 Ky. Acts ch. 74, sec. 16, effective July 12, 2012. -Amended 2010 Ky. Acts ch. 24, sec. 1475, effective July 15, 2010. -- Created
1972 Ky. Acts ch. 52, sec. 4, effective June 16, 1972.
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