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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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