Tennessee § 56-13-109 - Inspection and examination — Audits.

§ 56-13-109. Inspection and examination — Audits.

At least once every three (3) years, and whenever the commissioner determines it to be prudent, the commissioner shall visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations and whether it has complied with this chapter. The commissioner may extend such three-year period to five (5) years; provided, that the captive insurance company is subject to a comprehensive annual audit by independent auditors approved by the commissioner during such five-year period. The comprehensive audit shall be of a scope satisfactory to the commissioner. The expenses and charges of the examination shall be paid by the captive insurance company. Any other law or regulation to the contrary notwithstanding, an association captive insurance company, all of whose insureds operate municipal or cooperative electric systems, shall not be required to have performed an audit of its annual statutory financial statements by an independent certified public accountant, unless, within ninety (90) days before the close of the fiscal year of the association captive insurance company, a majority of the association members who are insured, directly or indirectly by it, request an audit. Sections 56-1-401 — 56-1-420 shall apply to examinations conducted under this section. All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies thereof produced by, obtained by or disclosed to the commissioner or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the commissioner or an employee or agent of the commissioner without the written consent of the captive insurance company, except to the extent provided in this subsection (d). Nothing in this subsection (d), shall prevent the commissioner from using such information in furtherance of the commissioner's regulatory authority under this title. The commissioner shall have the discretion to grant access to such information to public officers having jurisdiction over the regulation of insurance in any other state or country, or to law enforcement officers of this state or any other state or agency of the federal government at any time, only if the officers receiving the information agree in writing to maintain the confidentiality of the information in a manner consistent with this subsection (d). Acts 2011, ch. 468, § 1. Compiler's Notes. Former chapter 13, §§ 56-13-101 — 56-13-133 (Acts 1978, ch. 616, §§ 1-30; 1979, ch. 147, §§ 1-6; T.C.A., §§ 56-4501 — 56-4529; Acts 1981, ch. 299, §§ 1-15; 1982, ch. 645, §§ 1-3; 1982, ch. 706, §§ 2, 3; Acts 1983, ch. 85, § 2; Acts 1983, ch. 246, § 1; 1986, ch. 723, §§ 1-7; Acts 1987, ch. 298, §§ 1, 3; 1989, ch. 266, §§ 1-8; Acts 1989, ch. 591, §§ 1-6; Acts 1992, ch. 790, § 1; Acts 2005, ch. 499, § 25; 2010, ch. 848, § 2), concerning the Tennessee Captive Insurance Company Act, was repealed by Acts 2011, ch. 468, § 1, effective September 1, 2011. Cross-References. Confidentiality of public records, § 10-7-504 .