20-1098.08. Examinations

A. Whenever the director determines it to be prudent, the director may examine the business, transactions and affairs of each captive insurer to ascertain the captive insurer's financial condition and ability to fulfill its obligations and whether the captive insurer has complied with this article.

B. Section 20-1098.23 applies to all examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies of any of those reports, results, papers, information or documents produced by, obtained by or disclosed to the director in the course of an examination made under this section.

C. The director may use independent contractor examiners pursuant to sections 20-148 and 20-159 to conduct examinations pursuant to this section. All examinations and examination related expenses shall be borne by the captive insurer and shall be paid by the insurance examiners revolving fund pursuant to section 20-159.

D. As a condition of licensure, an alien captive insurer shall consent to the examination by the director of the affairs of the alien captive insurer in the jurisdiction in which the alien captive insurer is formed. The examination of a branch captive insurer shall be of branch business and branch operations only, during the period the branch captive insurer is formed, and must demonstrate to the director s satisfaction that the alien captive insurer is operating in a sound financial condition pursuant to all the applicable laws and regulations of the jurisdiction.