Oklahoma § 36-1637 - Examination of registered insurers

§ 36-1637. Examination of registered insurers

A. Subject to the limitation contained in this section and in

addition to the powers which the Commissioner has under Sections

309.1 through 309.7 of Title 36 of the Oklahoma Statutes relating to

the examination of insurers, the Commissioner shall have the power

to examine any insurer registered under Section 5 of this act and

its affiliates to ascertain the financial condition of the insurer,

including the enterprise risk to the insurer by the ultimate

controlling party, or by any entity or combination of entities

within the insurance holding company system, or by the insurance

holding company system on a consolidated basis.

B. 1. The Commissioner may order any insurer registered under

Section 5 of this act to produce such records, books or other

information papers in the possession of the insurer or its

affiliates as are reasonably necessary to determine compliance with

Title 36 of the Oklahoma Statutes.

2. To determine compliance with Title 36 of the Oklahoma

Statutes, the Commissioner may order any insurer registered under

Section 5 of this act to produce information not in the possession

of the insurer if the insurer can obtain access to such information

pursuant to contractual relationships, statutory obligations or

other method. In the event the insurer cannot obtain the

information requested by the Commissioner, the insurer shall provide

the Commissioner a detailed explanation of the reason that the

insurer cannot obtain the information and the identity of the holder

of the information. Whenever it appears to the Commissioner that

the detailed explanation is without merit, the Commissioner may

require, after notice and hearing, the insurer to pay a penalty of

Five Hundred Dollars ($500.00) for each day's delay, or may suspend

or revoke the insurer's license.

C. The Commissioner may retain at the registered insurer's

expense such attorneys, actuaries, accountants and other experts not

otherwise a part of the Commissioner's staff as shall be reasonably

necessary to assist in the conduct of the examination under

subsection A of this section. Any persons so retained shall be

under the direction and control of the Commissioner and shall act in

a purely advisory capacity.

D. Each registered insurer producing for examination records,

books and papers pursuant to subsection A of this section shall be

liable for and shall pay the expense of examination in accordance

with Section 309.6 of Title 36 of the Oklahoma Statutes.

E. 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. The Commissioner shall also have the power

to issue subpoenas, to administer oaths, and to examine 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

Oklahoma Statutes - Title 36. Insurance

Commissioner may petition a court of competent jurisdiction, and

upon proper showing, the court may enter an order compelling the

witness to appear and testify or produce documentary evidence.

Failure to obey the court order shall be punishable as contempt of

court. Every person shall be obliged to attend as a witness at the

place specified in the subpoena, when subpoenaed, anywhere within

the state. He or she shall be entitled to the fees and mileage, if

claimed, as provided for witness fees pursuant to Section 81 of

Title 28 of the Oklahoma Statutes, and such expense shall be

itemized and charged against, and be paid by, the company being

examined.

Added by Laws 2017, c. 350, § 7, emerg. eff. May 31, 2017.