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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 8 : Banking and Insurance

Chapter 101 : INSURANCE COMPANIES GENERALLY

Subchapter 013 : Holding Companies and Subsidiaries

(Cite as: 8 V.S.A. § 3686)
  • § 3686. Examination

    (a) Power of Commissioner. Subject to the limitation contained in this section and in addition to the powers which the Commissioner has under subchapter 7 of this chapter relating to the examination of insurers, the Commissioner shall also have the power to examine any insurer registered under section 3684 of this chapter 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) Access to books and records.

    (1) The Commissioner may order any insurer registered under section 3684 of this chapter to produce such records, books, or papers in the possession of the insurer or its affiliates as are reasonably necessary to determine compliance with this chapter.

    (2) To determine compliance with this chapter, the Commissioner may order any insurer registered under section 3684 of this chapter 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 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 up to $1,000.00 for each day's delay or may suspend or revoke the insurer's license.

    (c) Purpose and limitation of examination. The Commissioner shall exercise his or her power under subsections (a) and (b) of this section only if the examination of the insurer under subchapter 7 of this chapter is inadequate or the interests of the policyholders of such insurer may be adversely affected.

    (d) 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 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.

    (e) Expenses. 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 such examination in accordance with section 3563 of this title.

    (f) 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. The Commissioner also shall 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 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 same fees and mileage, if claimed, as a witness in the Superior Court of this State, which fees, mileage, and actual expense, if any, necessarily incurred in securing the attendance of witnesses and their testimony shall be itemized and charged against and be paid by the company being examined. (Added 1971, No. 72, § 2; amended 2013, No. 29, § 32, eff. May 13, 2013.)