§ 27-12-3 - Examination of reports – Requiring additional statements. - Rhode Island Statutes

SECTION 27-12-3

   § 27-12-3  Examination of reports –Requiring additional statements. – (a) The insurance commissioner shall annually examine the statements andreturns required to be made by the companies and insurance producers, and if,in the commissioner's opinion, any return is obscure, defective, orunsatisfactory he or she shall immediately require answers under oath, from theinsurance producer or company by whom that obscure, defective, orunsatisfactory return has been made, to any interrogatories as he or she maydeem necessary or proper to be answered in order to explain that return, andexhibit a full and accurate view of the business and resources of the companyrepresented by the insurance producer.

   (b) In the event that the insurance commissioner for anyreason does not examine the statements and returns required to be made byinsurance companies as stated in subsection (a), the examination shall bedeemed to have been made for all purposes upon the following conditions:

   (1) The examination has not been conducted for a period oftwo (2) consecutive calendar years;

   (2) The company has filed its financial statements for eachof the two (2) years which financial statements have been examined by anindependent certified public accountant and shall have been prepared inaccordance with generally accepted accounting principles applicable toinsurance companies for complete financial statements, including balance sheetsand related statements of income, changes in surplus, and changes in financialposition for each of the previous three (3) years;

   (3) The chief executive officer or the chief financialofficer of the company shall affirm that the filed financial statements arecomplete and accurate; and

   (4) The insurance commissioner shall not reject any filingwithin sixty (60) days of the date of the filing as being incomplete,inaccurate, or requiring further information in order to provide a full andaccurate review of the business and resources of the company.