§ 27-13.1-4 - Conduct of examinations. - Rhode Island Statutes

SECTION 27-13.1-4

   § 27-13.1-4  Conduct of examinations.– (a) Upon determining that an examination should be conducted, the director orthe director's designee shall issue an examination warrant appointing one ormore examiners to perform the examination and instructing them as to the scopeof the examination. In conducting the examination, the examiner shall observethose guidelines and procedures set forth in the Examiners' Handbook adopted bythe National Association of Insurance Commissioners. The director may alsoemploy such other guidelines or procedures as the director may deem appropriate.

   (b) Every company or person from whom information is sought,its officers, directors, and agents shall provide to the examiners appointedunder subsection (a) timely, convenient and free access at all reasonable hoursat its offices to all books, records, accounts, papers, documents, and any orall computer or other recordings relating to the property, assets, business,and affairs of the company being examined. The officers, directors, employees,and agents of the company or person must facilitate the examination and aid inthe examination so far as it is in their power to do so. The refusal of acompany, by its officers, directors, employees, or agents, to submit toexamination or to comply with any reasonable written request of the examinersshall be grounds for suspension or refusal of, or nonrenewal of any license orauthority held by the company to engage in an insurance or other businesssubject to the director's jurisdiction. Any such proceedings for suspension,revocation, or refusal of a license or authority shall be conducted pursuant tothe Administrative Procedures Act, chapter 35 of title 42. Nothing in thissubsection shall preclude the director from initiating action pursuant tochapters 14.1, 14.3, or any other chapter of this title.

   (c) The director or any of his or her examiners shall havethe power to issue subpoenas, to administer oaths, and to examine under oathany person as to any matter pertinent to the examination. Upon the failure orrefusal of any person to obey a subpoena, the director may petition a court ofcompetent jurisdiction, and upon proper showing, the court may enter an ordercompelling the witness to appear and testify or produce documentary evidence.Failure to obey the court order shall be punishable as contempt of court.Failure to obey the court order shall be punishable as contempt of court. Suchsubpoena may also be enforced pursuant to § 42-14-16.

   (d) When making an examination under this chapter, thedirector may retain attorneys, appraisers, independent actuaries, independentcertified public accountants, or other professionals and specialists asexaminers, the cost of which shall be borne by the company that is the subjectof the examination.

   (e) Nothing contained in this chapter shall be construed tolimit the director's authority to terminate or suspend an examination in orderto pursue other legal or regulatory action pursuant to the insurance laws ofthis state. Findings of fact and conclusions made pursuant to an examinationshall be prima facie evidence in any legal or regulatory action.

   (f) Nothing contained in this chapter shall be construed tolimit the director's authority to use and, if appropriate, to make public anyfinal or preliminary examination report, any examiner or company work papers orother documents, or any other information discovered or developed during thecourse of an examination in the furtherance of any legal or regulatory actionthat the director may, in his or her sole discretion, deem appropriate.