31A-16-107.5. Examination of registered insurers.
(1) Subject to the limitation contained in this section and the powers which the commissioner has under, relating to the examination of insurers, the commissioner has the power to examine an insurer registered under Sectionand its affiliates to ascertain the financial condition of the insurer, including the enterprise risk to the insurer by the ultimate controlling party, or by the insurance holding company system on a consolidated basis. Chapter 2, Administration of the Insurance Laws 31A-16-105
(2) The commissioner may order an insurer registered under Sectionto produce the records, books, or other information papers in the possession of the insurer or its affiliates as are reasonably necessary to determine compliance with this chapter. 31A-16-105 To determine compliance with this chapter, the commissioner may order an insurer registered under Sectionto 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 other methods. 31A-16-105 If an 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 the information. Whenever it appears to the commissioner that the detailed explanation is without merit, the commissioner may require, after notice and hearing, the insurer to pay a penalty of $5,000 for each day's delay, or may suspend or revoke the insurer's license.
(3) The commissioner may retain, at the registered insurer's expense, attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff, if they are necessary to assist in the conduct of the examination under Subsection. Any persons so retained are under the direction and control of the commissioner and shall act in a purely advisory capacity. (1)
(4) A registered insurer who produces records, books, and papers under Subsectionfor examination is liable for and shall pay the expense of the examination under Section. (2) 31A-2-205
(5) If an insurer fails to comply with an order issued under this section, the commissioner may: examine the affiliates to obtain the information; or issue subpoenas, administer oaths, and examine under oath any person for purposes of determining compliance with this section.
(6) Upon the failure or refusal of any person to obey a subpoena under Subsection, the commissioner may petition a court to enter an order compelling the witness to appear and testify or produce documentary evidence. (5) A person shall be obliged to attend as a witness at the place specified in the subpoena, when subpoenaed, anywhere within the state. A person subpoenaed is entitled to the same fees and mileage as a witness under Section. 78B-1-119 Fees, mileage, and actual expense, if any, necessarily incurred in securing the attendance of witnesses, and the witness's testimony, shall be itemized and charged against, and be paid by, the company being examined.