31.04.01.02

.02 Examination of Foreign Authorized Insurers and Alien Authorized Insurers.

A. In this regulation, "accreditated state" means a state in which its insurance regulatory agency meets the accreditation requirements of the National Association of Insurance Commissioners in accordance with its Financial Regulation Standards and Accreditation Program.

B. Except as provided in §C of this regulation, the Commissioner shall examine each foreign authorized insurer or alien authorized insurer whenever the Commissioner considers advisable and at least once every 5 years.

C. Exception.

(1) Instead of conducting an examination of the foreign authorized insurer or the alien authorized insurer, the Commissioner may accept a full report of the last examination made of the insurer and certified by the insurance supervisory official of the state of domicile of a foreign authorized insurer or the state of entry of an alien authorized insurer.

(2) On and after January 1, 1994, the Commissioner may accept the report of examination only from an accreditated state whose insurance regulatory agency conducted the examination.

(3) If the report of examination is from an insurance regulatory agency of a nonaccreditated state, the Commissioner may accept the report only if the examination:

(a) Is performed under the supervision of an insurance regulatory agency of an accreditated state; or

(b) Is performed with the participation of one or more examiners who:

(i) Are employed by the insurance regulatory agency of an accreditated state, and

(ii) After a review of the work papers and report of the examination, state under oath that the examination is performed in accordance with the standards and procedures required by the accreditated state of the examiner.