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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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