31A-37-502. Examination.
(1) (a) As provided in this section, the commissioner or a person appointed by the
commissioner, shall examine each captive insurance company in each three-year period.
(b) The three-year period described in Subsection (1)(a) shall be determined on the basis
of three full annual accounting periods of operation.
(c) The examination is to be made as of:
(i) December 31 of the full three-year period; or
(ii) the last day of the month of an annual accounting period authorized for a captive
insurance company under this section.
(d) In addition to an examination required under this Subsection (1), the commissioner,
or a person appointed by the commissioner may examine a captive insurance company whenever
the commissioner determines it to be prudent.
(2) During an examination under this section the commissioner, or a person appointed by
the commissioner, shall thoroughly inspect and examine the affairs of the captive insurance
company to ascertain:
(a) the financial condition of the captive insurance company;
(b) the ability of the captive insurance company to fulfill the obligations of the captive
insurance company; and
(c) whether the captive insurance company has complied with this chapter.
(3) The commissioner upon application may enlarge the three-year period described in
Subsection (1) to five years, if a captive insurance company is subject to a comprehensive annual
audit during that period:
(a) of a scope satisfactory to the commissioner; and
(b) performed by independent auditors approved by the commissioner.
(4) The commissioner may accept a comprehensive annual independent audit in lieu of
an examination:
(a) of a scope satisfactory to the commissioner; and
(b) performed by an independent auditor approved by the commissioner.
(5) A captive insurance company that is inspected and examined under this section shall
pay, as provided in Subsection 31A-37-202(6)(b), the expenses and charges of an inspection and
examination.
Amended by Chapter 349, 2009 General Session
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Last revised: Thursday, May 28, 2009