                                 CODE OF VIRGINIA

EXAMINATIONS (§ 38.2-1332)

A. In addition to the powers the Commission has under Article 4 (&#xA7;
38.2-1317 et seq.), the Commission shall have the power to examine any insurer
registered under &#xA7; 38.2-1329 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. The Commission may order any insurer registered under &#xA7; 38.2-1329 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 this article.

C. To determine compliance with this article, the Commission may order any
insurer registered under &#xA7; 38.2-1329 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
Commission, the insurer shall provide the Commission a detailed explanation of
the reason that the insurer cannot obtain the information and the identity of
the holder of such information. Whenever it appears to the Commission that the
detailed explanation is without merit, the Commission may require, after notice
and hearing, the insurer to pay a penalty pursuant to &#xA7; 38.2-218 for each
day&#8217;s delay or may suspend or revoke the insurer&#8217;s license.

D. The Commission may retain at the registered insurer&#8217;s expense any
attorneys, actuaries, accountants and other experts reasonably necessary to
assist in the conduct of the examination under subsection A. Any persons so
retained shall be under the direction and control of the Commission and shall
act in a purely advisory capacity.

E. Each insurer producing books and papers for examination records pursuant to
subsection B shall be liable for and shall pay the expense of the examination in
accordance with the provisions of Article 4 (&#xA7; 38.2-1317 et seq.).

F. In the event the insurer fails to comply with an order, the Commission shall
have the power to examine the affiliates to obtain the information.

HISTORY: 1973, c. 505, § 38.1-178.4; 1986, c. 562; 1992, c. 588; 2014, c. 309.