KRS 304.15-705: Commissioner's authority to examine -- Retention and inspection of

records.

(1) The commissioner may, when the commissioner deems it reasonably necessary to

protect the interests of the public, examine the business and affairs of any licensee

or ap plicant for a license. The commissioner shall have the authority to order

information reasonably necessary to ascertain whether the licensee or applicant is

acting or has acted in violation of the law or otherwise contrary to the interest of the

public. Th e reasonable expenses incurred in conducting any examination shall be

paid by the licensee or applicant.

(2) Records of all transactions of life settlement contracts shall be subject to the

following:

(a) The following records of all transactions of life s ettlement contracts shall be

maintained by the licensee for five (5) years after the death of the owner, and

shall be available to the commissioner for inspection during reasonable

business hours:

1. Proposed, offered, or executed settlement contracts, und erwriting

documents, policy forms, and applications from the date of the proposal,

offer, or execution of the settlement contract, whichever is later; and

2. All checks, drafts, or other evidence and documentation related to the

payment, transfer, deposit, or release of funds from the date of the

transaction.

(b) All other business records shall be kept for a period of five (5) years following

creation of records, or the completion of the purpose for which records were

created, whichever shall occur last.

(c) This section shall not relieve a licensed settlement provider of the obligation

to produce these documents to the commissioner after the retention period has

expired if the settlement provider has retained the documents.

(d) Records required to be retai ned by this section shall be legible and complete

and may be retained in paper, photograph, microprocess, magnetic,

mechanical, or electronic media, or by any process that accurately reproduces

or forms a durable medium for the reproduction of the record.