| << Previous Section (31A-37-501) | Next Section (31A-37-503) >> |
Insurance Code | |
Captive Insurance Companies Act | |
Section 502 | Examination. |
|
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 |
| << Previous Section (31A-37-501) | Next Section (31A-37-503) >> |