Title 58 — INSURANCE

The director of the Division of Insurance shall examine the affairs, transactions, accounts, records, and assets of each company, authorized insurer, management company, an owned or controlled subsidiary of the insurer, and each rating organization, as often as he deems advisable…

As used in this chapter, the term, company, means any person engaging in or proposing or attempting to engage in any insurance business and any person or group of persons who may otherwise be subject to the administrative, regulatory, or taxing authority of the director. Source: …

The director or his examiner shall make a full and true report of each examination. Source: SL 1966, ch 111 , ch 2, § 20 (1).

The report shall be comprised only of facts appearing from the books, papers, records, or documents of the person being examined, or ascertained from the statements of individuals concerning its affairs and the examiner's conclusions and recommendations based on procedures and gu…

No later than sixty days following completion of the examination, the examiner in charge shall file with the division a written report of examination under oath. Upon receipt of the report, the division shall transmit the report to the company examined. The company may make a wri…

Notwithstanding §§ 58-3-10 and 58-3-12 , for examinations, other than financial examinations, subject to the provisions of this chapter, the director or the examiner may issue an examination report. If an examination report is issued pursuant to this section, the applicable provi…

Prior to the completion of a market conduct examination, the director may request that the examiner in charge provide a draft examination report that is not to be filed under oath. The draft examination report does not constitute the conclusion of the examination and does not tri…

Draft examination report not governed by §§ 58-3-10 to

Each draft examination report described in § 58-3-12.2 is confidential. No draft examination report may be released except pursuant to a court order. Source: SL 2014, ch 232 , § 3.

The report when so filed shall be admissible in evidence, in any action or proceeding brought by the director against the person examined, or against its officers, representatives, or insurance producers, of the facts stated therein. The director and the director's examiners may …

Upon the adoption of the examination report under subdivision 58-3-12(1), the director shall continue to hold the content of the examination report as confidential information for a period of thirty days except to the extent provided in §§ 58-3-20 , 58-3-21 , and

58-3-18 Confidential investigative hearing--Inconsistencies in examination report. 58-3-19 Conducting hearing--Discovery. 58-3-20 Use of information discovered during examination for legal or regulatory action. 58-3-21 Disclosure of contents of examination report to insurance dep…

Each order entered pursuant to subdivision 58-3-12(1) shall be in accordance with chapter 1-26 . The order shall be accompanied by findings of fact and conclusions of law and constitutes a final decision. The order shall be served upon the company by certified mail, together with…

Subject to § 58-3-11 , any investigative hearing conducted under subdivision 58-3-12(3) shall be a confidential, investigatory proceeding for the resolution of any inconsistencies, discrepancies, or disputed issues apparent upon the face of the filed examination report or raised …

The director may not appoint an examiner to conduct the hearing in §

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 in so far as the transactions of the attorney in fact relate to the insurer. Sou…

The director may use and make public any final or preliminary examination report, any examiner or company work papers or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action. So…

The director is not prohibited from disclosing the contents of an examination report, preliminary examination report or results, or any matter or documentation relating thereto, to the insurance department of this or any other state or country, or to law enforcement officials of …

No examiner may be appointed by the director if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This section may not be construed …

No cause of action may arise nor may any liability be imposed against the director, the director's authorized representatives, or any examiner appointed by the director for any statements made or conduct performed in good faith while carrying out the provisions of this chapter. T…

When the examination is adopted and all rights to appeal have passed, the company shall implement the recommendations set forth in the final examination report within a time set by the director. The recommendations are those which are made pursuant to §

The director may promulgate rules pursuant to chapter 1-26 concerning examinations, forms and procedures for reporting, examiners and their qualifications, investigations and hearing procedures. Source: SL 1992, ch 338 , § 20.

This chapter applies to all persons doing insurance business notwithstanding any provision exempting them from the insurance laws of this title. Source: SL 1992, ch 338 , § 22.

The director shall examine each insurer or rating organization receiving an initial certificate of authority to do business in this state within one year from the date of the licensure except those qualifying under §§ 58-3-4 and

Any insurer subject to chapter 58-3 shall pay to the Division of Insurance an annual examination assessment fee of three hundred dollars by March first of each year. There is established within the state treasury the insurance examination fund, into which shall be deposited the p…

All money in the insurance examination fund is continuously appropriated for the purposes specified in this chapter. All costs of examinations, including travel expenses, living expense allowances, and per diem as compensation of examiners shall be paid from the fund. The fund sh…

The director may require persons who are not employees of the division who have been retained by the director to conduct or participate in examinations to bill and receive payments directly from the insurance company being examined. An insurer paying the costs of its examination …

The provisions of §§ 58-3-3.1 to 58-3-3.3 , inclusive, 58-3-7.4 , and 58-3-11 do not apply to farm mutual insurers subject to chapter 58-35 and captive insurance companies subject to chapter 58-46 unless the farm mutual or captive insurance company wrote premiums in excess of one…

In lieu of making his own examination, the director may, in his discretion, accept a full report of the last recent examination of a foreign or alien insurer, or rating organization, certified to by the insurance supervisory official of another state, territory, commonwealth, or …

For the purpose of ascertaining compliance with this title, the director may as often as the director deems advisable examine the accounts, records, documents, and transactions, pertaining to or affecting its insurance affairs or proposed insurance affairs, of: (1) Any insurance …

The director shall conduct any such examination at the home office, if a domestic or foreign insurer, or United States branch office, if an alien insurer, of the insurer, or in any of its branch or agency offices; or with respect to persons other than insurers, at the office or o…

Every person being examined, its officers, employees, insurance producers, and representatives shall produce and make freely available to the director or the director's examiners the accounts, records, documents, files, assets, and other relevant information in their possession o…

The examiner shall observe those guidelines and procedures set forth in the Examiners Handbook adopted by the National Association of Insurance Commissioners as adopted by rule by the director pursuant to chapter 1-26 . The director may also establish additional guidelines or pro…

The refusal of any company, by its officers, directors, employees, or insurance producers, to submit to examination or to comply with any reasonable written request of the examiners constitutes grounds for suspension or refusal of, or nonrenewal of any license or authority held b…

The director or any examiner authorized by the director may issue subpoenas, administer oaths, and examine under oath any person as to any matter pertinent to the examination. Subpoenas may be enforced pursuant to chapters 1-26 , 15-6 , and 21-34 . Source: SL 1992, ch 338 , § 7.

Each insurer's claim files for policies or certificates are subject to examination pursuant to chapter 58-3 by the director of insurance. To aid in the examination: (1) The insurer shall maintain claim data that is accessible and retrievable for examination. An insurer shall be a…

If the director finds accounts to be inadequate, or inadequately kept or posted, he may employ experts to rewrite, post, or balance them at the expense of the person being examined if such person has failed to complete or correct such accounting after the director has given him n…

If the director deems it necessary to value any real estate involved in any such examination, he may make written request of the person being examined to appoint one or more competent appraisers approved by the director, for the purpose of appraising such property. If no such app…