§ 523a-206

523A.206 Examinations — authority and scope. 1. The commissioner may conduct an examination under this chapter of any seller as often as the commissioner deems appropriate. If a seller has a trust arrangement, the commissionershall conduct an examination of such seller doing business in this state not less than onceevery five years unless the seller has provided to the commissioner, on an annual basis, acertified copy of an audit conducted by an independent certified public accountant verifyingcompliance with this chapter. The commissioner may require an audit of a seller, or otherperson by a certified public accountant to verify compliance with the requirements of thischapter, including rules adopted and orders issued pursuant to this chapter. 2. A seller shall reimburse the division for the expense of conducting the examination, including an audit conducted by a certified public accountant, unless the commissionerwaives this requirement, or the seller has previously provided to the commissioner acertified copy of an audit conducted by an independent certified public accountant verifyingcompliance with this chapter for each year in question and the examination conducted bythe

he commissioner acertified copy of an audit conducted by an independent certified public accountant verifyingcompliance with this chapter for each year in question and the examination conducted bythe commissioner does not disclose that the seller has not complied with this chapter forthe years in question. The expense of an examination involving multiple sellers or otherpersons shall be prorated among them upon any reasonable basis as determined by thecommissioner. 3. For purposes of completing an examination under this chapter, the commissioner may examine or investigate any person, or the business of any person, if the examinationor investigation is, in the sole discretion of the commissioner, necessary or material to theexamination of the seller. 4. Upon determining that an examination should be conducted, the commissioner may appoint one or more examiners to perform the examination and instruct those examiners asto the scope of the examination. 5. A seller, or other person from whom information is sought, and its officers, directors, employees, and agents shall provide to the examiners appointed under subsection 4, timely,convenient, and free access at their offices, at all

whom information is sought, and its officers, directors, employees, and agents shall provide to the examiners appointed under subsection 4, timely,convenient, and free access at their offices, at all reasonable hours, to all books, records,accounts, papers, documents, and all electronic or other recordings related to the property,assets, business, and affairs of the seller being examined and shall facilitate the examinationas much as possible. a. The refusal of a seller, by its officers, directors, employees, or agents, to submit to an examination or to comply with a reasonable written request of an examiner shall constitutegrounds for the suspension, revocation, or denial of an application to renew any license heldby the seller to engage in business subject to the commissioner’s jurisdiction. b. If a seller declines or refuses to submit to an examination as provided in this chapter, the commissioner shall immediately suspend, revoke, or deny an application to renew anylicense held by the seller or business to engage in business subject to the commissioner’sjurisdiction, and shall report the commissioner’s action to the attorney general, who shallimmediately apply to the district

the seller or business to engage in business subject to the commissioner’sjurisdiction, and shall report the commissioner’s action to the attorney general, who shallimmediately apply to the district court for the appointment of a receiver to administer thefinal affairs of the seller. 6. All records maintained by the commissioner under this section, including work papers, notes, recorded information, documents, and copies thereof that are produced or obtainedby or disclosed to the commissioner or another person in the course of a complianceexamination, shall be confidential pursuant to section 22.7, subsection 58, and shall not bemade available for inspection and copying except upon the approval of the commissioneror the attorney general. Such records shall be privileged and confidential in any judicial oradministrative proceeding except any of the following: a. An action commenced by the commissioner.b. An administrative proceeding brought by the insurance division.c. An action or proceeding which arises out of the criminal provisions of the laws of this state or of the United States. d.

issioner.b. An administrative proceeding brought by the insurance division.c. An action or proceeding which arises out of the criminal provisions of the laws of this state or of the United States. d. An action brought by the insurance division or the attorney general to recover moneys for embezzlement, misappropriation, or misuse of trust funds. 7. This section shall not be construed to limit the commissioner’s authority to terminate or suspend any examination in order to pursue other legal or regulatory actions pursuant to Sat Dec 23 00:55:34 2023 Iowa Code 2024, Section 523A.206 (22, 0) §523A.206, CEMETERY AND FUNERAL MERCHANDISE AND FUNERAL SERVICES 2 this chapter. Findings of fact and conclusions made pursuant to an examination are deemedto be prima facie evidence in any legal or regulatory action. 2001 Acts, ch 118, §24; 2007 Acts, ch 175, §12; 2008 Acts, ch 1123, §43; 2011 Acts, ch 70, §46; 2015 Acts, ch 128, §31, 50, 51 Referred to in §22.7(58) Sat Dec 23 00:55:34 2023 Iowa Code 2024, Section 523A.206 (22, 0)