(b) The three-year period described in paragraph (a) of this subsection is determined on the basis of three full annual accounting periods of operation.

(c) The examination is to be made as of December 31 of the full three-year period or as of the last day of the month of an annual accounting period authorized for a captive insurer under this section.

(d) In addition to an examination required under this subsection, the director may examine a captive insurer whenever the director determines it to be prudent.

(2) During an examination under this section, the director shall thoroughly examine the affairs of the captive insurer to ascertain:

(a) The financial condition of the captive insurer;

(b) The ability of the captive insurer to fulfill the obligations of the captive insurer; and

(c) Whether the captive insurer meets the requirements of ORS 735.150 to 735.190.

(3) The director may expand the three-year period described in subsection (1) of this section to five years if during that period a captive insurer is subject to a comprehensive annual audit:

(a) Of a scope satisfactory to the director; and

(b) Performed by independent auditors approved by the director.

(4) The director may accept a comprehensive annual independent audit in lieu of an examination if the scope of the examination is satisfactory to the director and the examination is performed by a qualified independent auditor.

(5) A captive insurer that is examined under this section shall pay the expenses and charges of the examination. [2012 c.84 §14]

Note: See note under 735.150.