§431:2-305  Examination reports.  (a)  All
examination reports shall be comprised of only facts appearing upon the books,
records, or other documents of the insurer, its producers, or other persons
examined, or as ascertained from the testimony of its officers, producers, or
other persons examined concerning its affairs, and such conclusions and
recommendations as the examiners find reasonably warranted from the facts.



(b)  No later than sixty days following
completion of the examination, the examiner in charge shall file with the
insurance division a verified written report of examination under oath. Upon
receipt of the verified report, the insurance division shall transmit the
report to the insurer or person examined, together with a notice that shall afford
the insurer or person examined a reasonable opportunity for not more than
thirty days to make a written submission or rebuttal with respect to any
matters contained in the examination report.



(c)  Within thirty days of the end of the
period allowed for the receipt of written submissions or rebuttals, the
commissioner shall fully consider and review the report, together with any
written submissions or rebuttals and any relevant portions of the examiner's
workpapers, and enter an order to:



(1)  Adopt the examination report as filed, or with
modifications or corrections.  If the examination report reveals that the
insurer or person is operating in violation of any law, rule, or prior order of
the commissioner, the commissioner may order the insurer or person to take any
action the commissioner considers necessary and appropriate to cure the
violation;



(2)  Reject the examination report with directions to
the examiner to reopen the examination for the purpose of obtaining additional
data, documentation, or information, and refiling pursuant to subsection (b);
or



(3)  Call for an investigatory hearing with no fewer
than twenty days notice to the insurer or person for purposes of obtaining
additional documentation, data, information, or testimony.



(d)  Orders shall be issued and hearings
conducted as follows:



(1)  All orders entered pursuant to subsection (c)(1)
shall be accompanied by findings and conclusions resulting from the
commissioner's consideration and review of the examination report, relevant
examiner workpapers, and any written submissions or rebuttals.  Any order shall
be considered a final administrative decision and may be appealed pursuant to
chapter 91, and shall be served upon the insurer or person by certified mail,
together with a copy of the adopted examination report.  Within thirty days of
the issuance of the adopted report, the insurer or person shall file affidavits
executed by each of its directors stating under oath that they have received a
copy of the adopted report and related orders, except that for examinations of
producers, adjusters, independent bill reviewers, or surplus lines brokers,
serving the copy of the adopted report and related orders by certified mail,
return receipt requested, shall satisfy the service requirement and no
affidavits shall be required; and



(2)  Any hearing conducted under subsection (c)(3) by
the commissioner or authorized representative shall be conducted as a
nonadversarial confidential investigatory proceeding as may be necessary for
the resolution of any inconsistencies, discrepancies, or disputed issues
apparent upon the face of the filed examination report or raised by or as a
result of the commissioner's review of relevant workpapers or raised by the
written submission or rebuttal of the insurer or person.  Within twenty days of
the conclusion of any hearing, the commissioner shall enter an order pursuant
to subsection (c)(1):



(A)  The commissioner shall not appoint an
examiner as an authorized representative to conduct the hearing.  The hearing
shall proceed expeditiously with discovery by the insurer or person limited to
the examiner's workpapers that tend to substantiate any assertions set forth in
any written submission or rebuttal.  The commissioner or the commissioner's
representative may issue subpoenas for the attendance of any witnesses or the
production of any documents deemed relevant to the investigation, whether under
the control of the division, the insurer, or other persons.  The documents
produced shall be included in the record and testimony taken by the
commissioner or the commissioner's representative shall be under oath and
preserved for the record;



(B)  The hearing shall proceed in accordance
with departmental rules adopted under chapter 91; and



(C)  Nothing contained in this section shall
require the insurance division to disclose any information or records that
would indicate or show the existence or content of any investigation or
activity of a criminal justice agency.



(e)  The examination report shall be
disseminated as follows:



(1)  Upon the adoption of the examination report under
subsection (c)(1), the commissioner shall continue to hold the content of the
examination report as private and confidential information for a period of
fifteen days, except to the extent provided in subsection (b).  Thereafter, the
commissioner may open the report for public inspection so long as no court of
competent jurisdiction has stayed its publication; and



(2)  Nothing contained in this code shall prevent or
be construed as prohibiting the commissioner from disclosing the content of an
examination report, preliminary examination report or results, or any matter
relating thereto, to the regulatory agency for insurance of any state or
country, or to law enforcement officials of this or any other state or agency
of the federal government at any time, so long as such agency or office
receiving the report or matters relating thereto agrees in writing to hold it
confidential and in a manner consistent with this part.



(f)  All working papers, recorded information,
documents, and copies thereof produced by, obtained by, or disclosed to the
commissioner or any other person in the course of an examination, shall be
confidential and not subject to subpoena and shall not be made public by the
commissioner or any other person, except to the extent provided in subsection
(e).  Access may be granted to the National Association of Insurance
Commissioners.  Any person shall agree in writing, prior to receiving the
information, to provide to it the same confidential treatment as required by
this part, unless the prior written consent of the insurer to which the
information pertains has been obtained. [L 1987, c 347, pt of §2; am L 1993, c
205, §4 as superseded by c 321, §7; am L 1995, c 232, §8; am L 2000, c 288, §4;
am L 2001, c 216, §4; am L 2004, c 122, §7]