Sec. 31.04.20.06. Market Conduct Examination

A. The Commissioner shall conduct a market conduct examination in accordance with this regulation.

B. The Commissioner shall notify the person subject to the market conduct examination, in writing, that a market conduct examination has commenced.

C. The Commissioner's notification that a market conduct examination has commenced shall:

(1) Specify the lines of insurance, scope, intent, and period covered by the market conduct examination;

(2) Provide the name and contact information of the Commissioner; and

(3) Provide any other information the Commissioner considers relevant.

D. The person notified under §B of this regulation shall give written notice to the Commissioner of the individual who:

(1) Has the authority and responsibility to respond to the Commissioner's request for accounts, records, documents, files, or other information needed in order to complete the market conduct examination; and

(2) Will coordinate on behalf of the person the market conduct examination with the Commissioner.

E. Following the notice provided under §§B and C of this regulation, the Commissioner shall conduct a conference with the person in a manner determined by the Commissioner to review:

(1) The information the person must provide for the market conduct examination;

(2) The administrative aspects of the market conduct examination, including but not limited to, market conduct examination expenses to be paid by the person examined; and

(3) Any other information the Commissioner considers relevant.

F. After the completion of the conference required in §E of this regulation, the Commissioner:

(1) May provide a written summary of the conference to the person; and

(2) Shall provide written notification of the information the person must provide for the market conduct examination in accordance with Regulation .05 of this chapter.

G. The Commissioner shall notify the person subject to a market conduct examination of the date after which the Commissioner may not accept additional information unless an extension has been granted by the Commissioner in accordance with Regulation .05G and H of this chapter.

H. The Commissioner shall conduct an exit conference with the person subject to the market conduct examination in a manner determined by the Commissioner

I. At the discretion of the Commissioner, a report certified by the insurance supervisory official of another state may be accepted in lieu of conducting a market conduct examination.