§ 27-71-15 - Cost of market analysis and examination.
SECTION 27-71-15
§ 27-71-15 Cost of market analysis andexamination. – (a) The total cost of market analysis and examinations performed pursuant tothis chapter shall be borne by the companies analyzed and/or examined,including the total cost of all persons contracted by the commissioner pursuantto this chapter to supplement in-house staff, in accordance with the provisionsof subdivision 27-13.1-7(a)(1) or in subsection 27-13.1-4(d) as applicable.
(b) The commissioner shall maintain active management andoversight of examination costs and fees, including costs and fees associatedwith the use of department personnel and examiners and with retaining qualifiedcontract examiners necessary to perform an examination. To the extent thecommissioner retains outside assistance, the commissioner must have in writingprotocols that:
(1) Clearly identify the types of functions to be subject tooutsourcing;
(2) Provide specific timelines for completion of theoutsourced review;
(3) Require disclosure of contract examiners' recommendations;
(4) Establish and utilize a dispute resolution or arbitrationmechanism to resolve conflicts with insurers regarding examination costs andfees; and
(5) Require disclosure of the terms of the contracts with theoutside consultants that will be used specifically the costs and fees and/orhourly rates that can be charged.
(c) The commissioner shall review and affirmatively endorsedetailed billings from the qualified contract examiner before summary billingsare sent to the insurer.
(d) The commissioner may contract for such qualified contractexaminers as the commissioner deems necessary, provided that the compensationand per diem allowances paid to such contract persons shall not exceed onehundred twenty-five percent (125%) of the compensation and per diem allowancesfor examiners set forth in the guidelines adopted by the National Associationof Insurance Commissioners, unless the commissioner demonstrates that onehundred twenty-five percent (125%) is inadequate under the circumstances of theexamination. The commissioners may make an exception to this requirement forcompensation paid to contracted persons with unique expertise, however, suchcompensation shall be reasonable and based on market conditions.