State Codes and Statutes
Statutes > Nebraska > Chapter44 > 44-590544-5905. Conduct of examinations; record retentionrequirements.(1) Upon determining that an examination shouldbe conducted, the director or his or her designee shall appoint one or moreexaminers to conduct the examination and instruct them as to the scope ofthe examination. In conducting the examination, the examiner shall observethose guidelines and procedures set forth in the Examiners' Handbook adoptedby the National Association of Insurance Commissioners. The director may alsoemploy such other guidelines or procedures as the director may deem appropriate.(2)(a) Every company or person from whom information is sought and itsofficers, directors, employees, and agents shall provide to the examinersappointed under subsection (1) of this section timely, convenient, and freeaccess to all books, records, accounts, papers, documents, and computer orother recordings relating to the property, assets, business, and affairs ofthe company being examined.(b)(i)(A) Every company or person subject to the Insurers ExaminationAct shall retain all books, records, accounts, papers, documents, and computeror other recordings relating to the property, assets, financial accounts,and business of such company or person in a manner that permits examinationof such books, records, accounts, papers, documents, and computer or otherrecordings for five years, or until the periodof time in which the transaction took place has undergone a financial examinationby the director, whichever is later, following the completion of a transactionrelating to the property, assets, financial accounts, and business of suchcompany or person.(B) Every company or person subject to the act shall retain market conductrecords for five years following the completionof a transaction relating to the insurance business and affairs of such companyor person. For purposes of this subdivision, market conduct records meansall books, records, accounts, papers, documents, and computer or other recordingsrelating to transactions with insureds, certificate holders, claimants, insuranceproducers, other insurers, subrogees, and subrogors and recordings relatedto its trade practices, underwriting, rate and form practices, advertising,regulatory matters, and other affairs of such company or person.(ii) The books, records, accounts, papers, documents, and computer orother recordings described in subdivisions (2)(b)(i)(A) and (B) of this sectionand maintained in electronic, computer, micrographic, or other form shallbe maintained in a form capable of accurate duplication on paper.(c) The officers, directors, employees, and agents of the company orperson shall facilitate the examination and aid in the examination so faras it is in their power to do so. The refusal of any company, by its officers,directors, employees, or agents, to submit to examination or to comply withany reasonable written request of the examiners shall be grounds for suspensionor refusal of or nonrenewal of any license or authority held by the companyto engage in an insurance or other business subject to the director's jurisdiction.Any such proceedings for suspension, revocation, or refusal of any licenseor authority shall be conducted pursuant to the Administrative Procedure Act.(d) For purposes of this subsection, officers, directors, employees,and agents shall include general agents, managing agents, attorneys in fact,organizers, promoters, loss adjusters, and any persons having a contract,written or oral, pertaining to the management or control of a company or anyfunction thereof.(3) The director or any of his or her examiners shall have the powerto issue subpoenas, to administer oaths, and to examine under oath any personas to any matter pertinent to the examination. Upon the failure or refusalof any person to obey a subpoena, the director may petition a court of competentjurisdiction, and upon proper showing, the court may enter an order compellingthe witness to appear and testify or produce documentary evidence. Failureto obey the court order shall be punishable as contempt of court. Every personshall be obliged to attend as a witness at the place specified in the subpoena,when subpoenaed, anywhere within the state. He or she shall be entitled tothe same fees and mileage, if claimed, as a witness in the district courtwith mileage to be computed at the rate provided in section 81-1176, whichfees, mileage, and actual expense, if any, necessarily incurred in securingthe attendance of witnesses, and their testimony, shall be itemized and chargedagainst, and be paid by, the company being examined.(4) When conducting an examination under the Insurers Examination Act,the director may retain attorneys, appraisers, independent actuaries, independentcertified public accountants, loss-reserve specialists, or other professionalsand specialists, the cost of which shall be borne by the company which isthe subject of the examination.(5) Nothing in the act shall be construed to limit the director's authorityto terminate or suspend any examination in order to pursue other legal orregulatory action pursuant to the insurance laws of this state. Findings offact and conclusions made pursuant to any examination shall be prima facieevidence in any legal or regulatory action.(6) Nothing contained in the act shall be construed to limit the director'sauthority to use and, if appropriate, to make public any final or preliminaryexamination report, any examiner or company workpapers or other documents,or any other information discovered or developed during the course of anyexamination in the furtherance of any legal or regulatory action which thedirector may, in his or her sole discretion, deem appropriate. SourceLaws 1993, LB 583, § 5; Laws 1999, LB 259, § 12; Laws 2009, LB192, § 10. Cross ReferencesAdministrative Procedure Act, see section 84-920.
