Section 21.06.120. Examination of insurers.

   (a) The director may examine the affairs, transactions, accounts, records, and assets of each authorized and formerly authorized insurer and each licensed and formerly licensed managing general agent, reinsurance intermediary broker, reinsurance intermediary manager, surplus lines broker, and surplus lines association as often as the director considers advisable. In scheduling and determining the nature, scope, and frequency of examinations, the director may consider any factor or material that the director determines is appropriate, including the results of financial statement analysis and ratios, competency of management or change of ownership, actuarial opinions, reports of independent certified public accountants, number and nature of consumer complaints, results of prior examinations, frequency of prior violations of statute and regulation, and criteria set out in the most recent edition of the Financial Condition Examiners Handbook and the Market Regulation Handbook approved by the National Association of Insurance Commissioners and in effect when the director conducts an examination. Examination of an alien insurer may be limited to its insurance transactions and affairs in the United States. Examination of a reciprocal insurer may also include examination of its attorney-in-fact to the extent that the transactions of the attorney-in-fact relate to the insurer.
   (b) The director shall in like manner examine each insurer applying for an initial certificate of authority to do business in this state.
   (c) In place of an examination by the director, the director may accept a full report of the last recent examination of a foreign or alien insurer, issued by the insurance supervisory official of another state, territory, commonwealth, or district of the United States. The director may require that the
        (1) insurance regulatory agency conducting the examination be, at the time of the examination, accredited by the National Association of Insurance Commissioners;
        (2) examination be performed under the supervision of an insurance regulatory agency accredited by the National Association of Insurance Commissioners; and the supervising examiner, after a review of the examination work papers and report, state under oath that the examination and report comply with the standards and procedures required by their accredited state insurance regulatory agency; or
        (3) examiner conducting the examination be employed by an insurance regulatory agency accredited at the time of the examination by the National Association of Insurance Commissioners and that the examiner, after review of the examination work papers and report, state under oath that the examination and report comply with the standards and procedures required by the accredited insurance regulatory agency.
   (d) The director may examine insurers in participation with the National Association of Insurance Commissioners.
   (e) The director may use a contract examiner to carry out the functions of this section. The selection of a contract examiner and the award of a contract is subject to AS 36.30 (State Procurement Code), except when the director makes a written determination that an emergency selection and contract award is necessary.
   (f) For the purpose of completing an examination of a person under this title, the director may examine or investigate any person, or the business of any person, if the director determines that the examination or investigation is necessary or material to the examination of the person.
   (g) The director shall examine a domestic insurer at least once every three years. The director may examine a domestic insurer at any time when the director determines that an examination or investigation is necessary. Unless the director determines an insurer is in danger of becoming impaired, when the director intends to conduct an interim examination of a domestic insurer covering the same subjects that were included in the scope of the last examination report, the director shall give at least 10 days prior written notice stating the scope and purpose of the examination. In this subsection, "interim examination" means an examination of a domestic insurer that occurs within three years after the start of the domestic insurer's last examination.

Authorities

21.06.150;21.09.310;21.12.020;21.22.110;21.27.650;21.36.185;21.59.060;21.69.648;21.75.115;21.78.040;21.84.485;21.87.250

Notes

Recent Bills that will modify this

HB 372 OMNIBUS INSURANCE

Implemented As

3 AAC 21.470
3 AAC 21.700
3 AAC 26.030
3 AAC 30.030

References

3 AAC 21.470
3 AAC 21.700
AS 21.06.150 Examination reports.
AS 21.09.310 Authorization of United States branches of alien insurers and general requirements.
AS 21.12.020 Reinsurance credit allowed a domestic ceding insurer.
AS 21.22.110 Examination.
AS 21.27.650 Operating requirements for third-party administrators.
AS 21.36.185 Maintenance of complaint handling records.
AS 21.59.060 Records and accounts.
AS 21.69.648 Voluntary surrender of certificate of authority.
AS 21.75.115 Examination of an attorney-in-fact.
AS 21.78.040 Grounds for rehabilitation.
AS 21.84.485 Examination of societies.
AS 21.87.250 Examination.

History

(Sec. 1 ch 120 SLA 1966; am Sec. 1 ch 117 SLA 1984; am Sec. 1, 2 ch 50 SLA 1990; am Sec. 1 - 4 ch 67 SLA 1992; am Sec. 6 ch 62 SLA 1995; am Sec. 1 ch 96 SLA 2004; am Sec. 2 ch 41 SLA 2016)