§ 27-43-6 - Reports, statements, examinations, and investigations.
SECTION 27-43-6
§ 27-43-6 Reports, statements,examinations, and investigations. – (a) Captive insurance companies shall annually file a statement of condition asprovided in § 27-12-1; provided, that the commissioner may by regulationmodify the required filing and content of the statements of captive insurancecompanies. Captive insurance companies are also subject to the furtherprovisions of chapter 12 of this title; provided, that statements filedpursuant to this section, except for those reports filed by industrial insuredcaptive insurance companies insuring the risks of industrial insured groups asdefined in § 27-43-1(8)(ii), are not subject to the public inspectionprovisions of § 27-12-1(b).
(b) The commissioner, either personally or by a committeeappointed by him or her, consisting of one or more persons not directors orofficers of any captive insurance company doing business in this state, may, atany time, examine the affairs of any captive insurance company incorporated byor doing business in this state. The officers of the company shall exhibit itsbooks to the commissioner or committee, and facilitate the examination, and thecommissioner or the committee may examine, under oath, the officers of thecompany in relation to its affairs, and the commissioner shall, if he or shedeems it advisable, publish the result of the investigation in one or morenewspapers published in the state. The total cost of the examinations shall beborne by the examined companies and shall be one hundred fifty percent (150%)of the total salaries paid to the examining personnel of the insurance divisionengaged in the examinations, less any salary reimbursements, and shall be paidto the commissioner to and for the use of the insurance division. Theassessment shall be in addition to any taxes and fees payable to the state.
(c) Whenever it shall appear to the commissioner, from thestatements, or from an examination of the affairs of any captive insurancecompany, that the company is insolvent, or is in an unsound financialcondition, or that its business policies are unsound or improper, or that itscondition or management is such as to render its further transaction ofbusiness hazardous to the public or its policyholders, or that the amount ofits funds, net cash or contingent assets is deficient, or that its capital isimpaired, or that it is conducting its business fraudulently or refuses orneglects to comply with the laws of the state relating to captive insurancecompanies, it shall be the duty of the commissioner, after notice and hearing,to revoke the license issued to the company and the licenses issued to all ofits insurance producers, or he or she may revoke the licenses or suspend themfor a period not exceeding the unexpired terms of the licenses.