521A.6 Examination — penalties — expenses. 1. Power of commissioner. Subject to the limitation contained in this section and in addition to the powers which the commissioner has under chapter 507 relating to theexamination of insurers, the commissioner shall have the power to examine any insurerregistered under section 521A.4 and its affiliates to ascertain the financial condition of theinsurer, including the enterprise risk to the insurer by the ultimate controlling party, or byany entity or combination of entities within the insurance holding company system, or bythe insurance holding company system on a consolidated basis. 2. Access to books and records — penalty.a. The commissioner may order an insurer registered under section 521A.4 to produce records, books, or other information papers in the possession of the insurer or its affiliatesas reasonably necessary or to determine compliance with this chapter. b. To determine compliance with this chapter, the commissioner may order any insurer registered under section 521A.4 to produce information not in the possession of the insurerif the insurer can obtain access to such information pursuant to a contractual ssioner may order any insurer registered under section 521A.4 to produce information not in the possession of the insurerif the insurer can obtain access to such information pursuant to a contractual relationship,statutory obligation, or other method. In the event the insurer cannot obtain the informationrequested by the commissioner, the insurer shall provide the commissioner a detailedexplanation of the reason that the insurer cannot obtain the information and the identity ofthe holder of the information. Whenever it appears to the commissioner that the detailedexplanation is without merit, the commissioner may require, after notice and hearing, theinsurer to pay a penalty of five hundred dollars for each day’s delay, or may suspend orrevoke the insurer’s certificate of authority. 3. Compelling production. In the event the insurer fails to comply with an order, the commissioner shall have the power to examine the affiliates to obtain the information. Thecommissioner shall also have the power to issue subpoenas, to administer oaths, and toexamine under oath any person for purposes of determining compliance with this section.Upon the failure or refusal of any person to obey a ave the power to issue subpoenas, to administer oaths, and toexamine under oath any person for purposes of determining compliance with this section.Upon the failure or refusal of any person to obey a subpoena, the commissioner may petitiona court of competent jurisdiction, and upon proper showing, the court may enter an ordercompelling the witness to appear and testify or produce documentary evidence. Failure toobey the court order shall be punishable as contempt of court. Every person shall be obligedto attend as a witness at the place specified in the subpoena, when subpoenaed, anywherewithin the state. Such a person shall be entitled to the same fees and mileage, if claimed,as a witness in district court, which fees, mileage, and actual expense, if any, necessarilyincurred in securing the attendance of witnesses, and their testimony, shall be itemized andcharged against, and be paid by, the company being examined. 4. Use of consultants. The commissioner may retain at the registered insurer’s expense such attorneys, actuaries, accountants, and other experts not otherwise a part of thecommissioner’s staff as shall be reasonably necessary to assist in the conduct of theexamination insurer’s expense such attorneys, actuaries, accountants, and other experts not otherwise a part of thecommissioner’s staff as shall be reasonably necessary to assist in the conduct of theexamination under subsection 1, 2, or 3 of this section. Any persons so retained shall be underthe direction and control of the commissioner and shall act in a purely advisory capacity. 5. Expenses. Each registered insurer producing for examination records, books, and papers pursuant to subsection 1, 2, or 3 of this section shall be liable for and shall pay theexpense of such examination in accordance with section 507.7. [C71, 73, 75, 77, 79, 81, §521A.6]86 Acts, ch 1102, §21, 22; 2014 Acts, ch 1018, §18Referred to in §508.33A, 521A.6A, 521A.6B, 521A.7 Sat Dec 23 00:52:30 2023 Iowa Code 2024, Section 521A.6 (22, 0)
Iowa Legal Code