§ 53-208.15. Examinations.
§ 53‑208.15. Examinations.
(a) The Commissionermay conduct an annual on‑site examination of a licensee. Should theCommissioner conclude that an on‑site examination of a licensee isnecessary, the licensee shall pay all reasonably incurred costs of the examination.If the Commissioner determines, based on the licensee's financial statementsand past history of operations in the State, that an on‑site examinationis unnecessary, then the on‑site examination may be waived by theCommissioner. An on‑site examination may be conducted in conjunction withexaminations to be performed by representatives of agencies of another state orstates. The Commissioner, in lieu of an on‑site examination, may acceptthe examination report of an agency of another state, or a report prepared byan independent accounting firm, and reports so accepted are considered for allpurposes as an official report of the Commissioner. The Commissioner mayexamine a licensee without prior notice if the Commissioner has a reasonablebasis to believe that the licensee is not in compliance with this Article.
(b) If the Commissionerhas a reasonable basis to believe that the licensee or authorized delegate isnot in compliance with this Article, the Commissioner may (i) request financialdata from a licensee in addition to that required under G.S. 53‑208.11,or (ii) conduct an on‑site examination of any authorized delegate or ofany location of a licensee within this State without prior notice to theauthorized delegate or licensee. When the Commissioner examines an authorizeddelegate's operations, the authorized delegate shall pay all reasonablyincurred costs of the examination. When the Commissioner examines a licensee'slocation within the State, the licensee shall pay all reasonably incurred costsof the examination. (2001‑443, s. 2.)