§ 507.10

507.10 Examination reports. 1. General description. All examination reports shall be comprised only of facts appearing upon the books, records, or other documents of the company, its agents, or otherpersons examined, or as ascertained from the testimony of its officers or agents or otherpersons examined concerning its affairs, and such conclusions and recommendations as theexaminers find reasonably warranted from the facts. 2. Filing of examination report. No later than sixty days following completion of the examination, the examiner in charge shall file with the division a verified written report ofexamination. Upon receipt of the verified report and after administrative review, the divisionshall transmit the report to the company examined, together with a notice which shall affordthe company examined a reasonable opportunity of not more than thirty days to make awritten submission or rebuttal with respect to any matters contained in the examinationreport. 3. Adoption of report on examination. Within twenty days of the end of the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fullyconsider and review the report, together with any

on examination. Within twenty days of the end of the period allowed for the receipt of written submissions or rebuttals, the commissioner shall fullyconsider and review the report, together with any written submissions or rebuttals and anyrelevant portions of the examiner’s work papers and enter an order which does one of thefollowing: a. Adopts the examination report as filed or with modification or corrections. If the examination report reveals that the company is operating in violation of any law or a ruleor prior order of the commissioner, the commissioner may order the company to take anyaction the commissioner considers necessary and appropriate to cure the violation. b. Rejects the examination report with directions to the examiners to reopen the examination for purposes of obtaining additional data, documentation, or information, andrefiling pursuant to subsection 1 above. c. Calls for an investigatory hearing with no less than twenty days’ notice to the company for purposes of obtaining additional documentation, data, information, and testimony. 4. Orders and procedures.a. All orders entered pursuant to subsection 3, paragraph 'a', shall be accompanied by findings and

s of obtaining additional documentation, data, information, and testimony. 4. Orders and procedures.a. All orders entered pursuant to subsection 3, paragraph 'a', shall be accompanied by findings and conclusions resulting from the commissioner’s consideration and review ofthe examination report, relevant examiner work papers, and any written submissions orrebuttals. Any such order is a final administrative decision and may be appealed pursuant tochapter 17A, and shall be served upon the company by certified mail, together with a copy ofthe adopted examination report. The board of directors of the company shall timely reviewthe adopted report. The minutes of the meeting of the board at which the adopted report isconsidered shall reflect that each member of the board has reviewed the adopted report. b. Any hearing conducted under subsection 3, paragraph 'c', by the commissioner or an authorized representative, shall be conducted as a nonadversarial, confidential, investigatoryproceeding as necessary for the resolution of any inconsistencies, discrepancies, or disputedissues apparent upon the face of the filed examination report or indicated as a result of thecommissioner’s review of

as necessary for the resolution of any inconsistencies, discrepancies, or disputedissues apparent upon the face of the filed examination report or indicated as a result of thecommissioner’s review of relevant work papers or by the written submission or rebuttal ofthe company. Within twenty days of the conclusion of any such hearing, the commissionershall enter an order pursuant to subsection 3, paragraph 'a'. (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 company limited to the examiner’s work papers which tend to substantiate any assertionsset forth in any written submission or rebuttal. The commissioner or a representative actingon the commissioner’s behalf may issue subpoenas for the attendance of any witnesses orthe production of any documents deemed relevant to the investigation whether under thecontrol of the division of insurance, the company, or other persons. The documents producedshall be included in the record and testimony taken by the commissioner or a representativeacting on the commissioner’s behalf shall be under oath and preserved for the

persons. The documents producedshall be included in the record and testimony taken by the commissioner or a representativeacting on the commissioner’s behalf shall be under oath and preserved for the record. (b) This section does not require the division of insurance to disclose any information or records which would indicate or show the existence of any investigation or activity of acriminal or juvenile justice agency. Sat Dec 23 00:39:05 2023 Iowa Code 2024, Section 507.10 (20, 1) §507.10, EXAMINATION OF INSURANCE COMPANIES 2 (2) The hearing shall proceed with the commissioner or the commissioner’s representative posing questions to the persons subpoenaed. Thereafter the company andthe division may present testimony relevant to the investigation. Cross-examination shall beconducted only by the commissioner or the commissioner’s representative. The companyand the division shall be permitted to make closing statements and may be represented bycounsel. 5. Publication and use.a. Upon the adoption of the preliminary examination report under subsection 3, paragraph 'a', the commissioner shall hold the content of the final examination report asprivate and confidential information not

he adoption of the preliminary examination report under subsection 3, paragraph 'a', the commissioner shall hold the content of the final examination report asprivate and confidential information not subject to disclosure and it is not a public recordunder chapter 22, for a period of twenty days except to the extent provided in subsection2. After the twenty-day period has elapsed, the commissioner may open the final report forpublic inspection so long as no court of competent jurisdiction has stayed its publication. b. The commissioner is not prevented from disclosing the content of an examination report, preliminary examination report or results, or any matter relating to the report, to aninsurance department of any other state or country, to the national association of insurancecommissioners, or to law enforcement officials of this or any other state or an agency of thefederal government at any time, so long as such agency or office receiving the report, ormatters relating to the report, agrees in writing to maintain the confidentiality of the reportor such matters in a manner consistent with this chapter. c.

ch agency or office receiving the report, ormatters relating to the report, agrees in writing to maintain the confidentiality of the reportor such matters in a manner consistent with this chapter. c. If the commissioner determines that regulatory action is appropriate as a result of any examination, the commissioner may initiate any proceeding or action as provided by law. [S13, §1821-d; C24, 27, 31, 35, 39, §8634; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §507.10] 92 Acts, ch 1117, §5; 95 Acts, ch 191, §25; 2001 Acts, ch 69, §3; 2006 Acts, ch 1117, §19; 2012 Acts, ch 1023, §157; 2013 Acts, ch 124, §9 Referred to in §511.23 Sat Dec 23 00:39:05 2023 Iowa Code 2024, Section 507.10 (20, 1)