[§431:2D-103]  Domestic responsibility anddeference to other states.  (a)  The commissioner shall be responsible forconducting market conduct examinations for policyholder protection, which shallbe accomplished by comprehensive or targeted examinations of domestic insurersor the affiliates of domestic insurers and targeted examinations of foreigninsurers or the affiliates of foreign insurers as deemed necessary by thecommissioner, based on the results of market analysis.  The commissioner maydelegate responsibility for conducting an examination of a domestic insurer,foreign insurer, or an affiliate of an insurer to the insurance commissioner ofanother state if that state's insurance commissioner agrees to accept thedelegated responsibility for the examination.

(b)  The commissioner may delegateresponsibility to an insurance commissioner of a state in which the domesticinsurer, foreign insurer, or affiliate has a significant number of policies orsignificant premium volume, as determined by the commissioner by rule.

(c)  If the commissioner elects to delegateresponsibility for examining an insurer, the commissioner shall accept a reportof the examination prepared by the commissioner to whom the responsibility hasbeen delegated.

(d)  In lieu of conducting a market conductexamination of an insurer, the commissioner shall accept a report of a marketconduct examination on the insurer prepared by the insurance commissioner ofthe insurer's state of domicile or another state; provided:

(1)  The laws of that state applicable to the subjectof the examination are deemed by the commissioner to be substantially similarto those of this State;

(2)  The examining state has a market conductsurveillance system that the commissioner deems comparable to the marketconduct surveillance system required under this article; and

(3)  The examination from the other state's insurancecommissioner has been conducted within the past three years.

(e)  If the insurance commissioner to whom theexamination responsibility was delegated pursuant to subsection (a) or thereport of a market conduct examination prepared by the insurance commissionerof another state pursuant to subsection (d), did not evaluate the specific areaor issue of concern to the commissioner, the commissioner may pursue a targetedexamination or market analysis of the unexamined area pursuant to this article.

(f)  The commissioner's determination undersubsection (d) is discretionary and is not subject to appeal.

(g)  Subject to a determination undersubsection (d), if a market conduct examination conducted by another stateresults in a finding that an insurer should modify a specific practice orprocedure, the commissioner shall accept documentation that the insurer hasmade a similar modification in this State, in lieu of initiating a marketconduct action or examination related to that practice or procedure.  Thecommissioner may require other or additional practice or proceduremodifications as are necessary to achieve compliance with specific state lawsor regulations, which differ substantially from those of the state thatconducted the examination. [L 2007, c 227, pt of §1]