(1) (a) As provided in this section, the commissioner, or a person appointed by the commissioner, shall examine each captive insurance company in each five-year period. (b) The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation. (c) The examination is to be made as of: (i) December 31 of the full five-year period; or (ii) the last day of the month of an annual accounting period authorized for a captive insurance company under this section. (d) In addition to an examination required under this Subsection (1), the commissioner, or a person appointed by the commissioner may examine a captive insurance company whenever the commissioner determines it to be prudent.

(a) As provided in this section, the commissioner, or a person appointed by the commissioner, shall examine each captive insurance company in each five-year period.

(b) The five-year period described in Subsection (1)(a) shall be determined on the basis of five full annual accounting periods of operation.

(c) The examination is to be made as of: (i) December 31 of the full five-year period; or (ii) the last day of the month of an annual accounting period authorized for a captive insurance company under this section.

(i) December 31 of the full five-year period; or

(ii) the last day of the month of an annual accounting period authorized for a captive insurance company under this section.

(d) In addition to an examination required under this Subsection (1), the commissioner, or a person appointed by the commissioner may examine a captive insurance company whenever the commissioner determines it to be prudent.

(2) During an examination under this section the commissioner, or a person appointed by the commissioner, shall thoroughly inspect and examine the affairs of the captive insurance company to ascertain: (a) the financial condition of the captive insurance company; (b) the ability of the captive insurance company to fulfill the obligations of the captive insurance company; and (c) whether the captive insurance company has complied with this chapter.

(a) the financial condition of the captive insurance company;

(b) the ability of the captive insurance company to fulfill the obligations of the captive insurance company; and

(c) whether the captive insurance company has complied with this chapter.

(3) The commissioner may accept a comprehensive annual independent audit in lieu of an examination: (a) of a scope satisfactory to the commissioner; and (b) performed by an independent auditor approved by the commissioner.

(a) of a scope satisfactory to the commissioner; and

(b) performed by an independent auditor approved by the commissioner.

(4) A captive insurance company that is inspected and examined under this section shall pay, as provided in Subsection 31A-37-201(6)(b), the expenses and charges of an inspection and examination.