31A-37-502. Examination.
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Effective 5/1/2024
31A-37-502. Examination.
(a)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.
(b)The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation.
(c)The examination is to be made as of:
(i)December 31 of the full five-year period; or
(ii)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:
(a)the financial condition of the captive insurance company;
(b)the ability of the captive insurance company to fulfill the insurance policy obligations of the captive insurance company; and
(c)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 31A-37-201 (6)(b), the expenses and charges of an inspection and examination.
Amended by Chapter 120 , 2024 General Session