Examination.

31A-37-502. Examination.

(1) As provided in this section, the commissioner, or a person appointed by the commissioner, may examine each captive insurance company at least once every five years, or more frequently if the commissioner determines a more frequent examination is prudent. The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation. The examination is to be made as of: December 31 of the full five-year period; or the last day of the month of an annual accounting period authorized for a captive insurance company under this section.

(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 all or any combination of the following: the financial condition of the captive insurance company; the ability of the captive insurance company to fulfill the insurance policy obligations of the captive insurance company; and whether the captive insurance company has complied with this chapter.

(3) A captive insurance company that is inspected and examined under this section shall pay, as provided in Subsection, the expenses and charges of an inspection and examination. 31A-37-201(6)(b)