{"data":{"id":"us-ky/krs-304.37-040","jurisdiction":"us-ky","citation":"KRS 304.37-040","heading":"Examination by commissioner.","body":"(1) Subject to the limitation contained in this section and in addition to the powers\nwhich the commissioner has under KRS Chapter 304 relating to the examination of\ninsurers, the commissioner shall also have the power to:\n(a) Examine an insurer registered und er KRS 304.37 -020 and its affiliates to\nascertain the financial condition of the insurer, including the enterprise risk, to\nthe insurer by:\n1. The ultimate controlling party;\n2. Any entity or combination of entities within the insurance holding\ncompany system; or\n3. The insurance holding company system on a consolidated basis;\n(b) Order any insurer registered under KRS 304.37 -020 to produce such records,\nbooks, or other information in the possession of the insurer or its affiliates as\nshall be necessary to determine compliance with this subtitle; and\n(c) Order any insurer registered under KRS 304.37 -020 to produce information\nnot in the possession of the insurer if the insurer can obtain access to the\ninformation pursuant to contractual relationships, statut ory obligations, or\nanother method. In the event the insurer cannot obtain the information\nrequested by the commissioner, the insurer shall provide the commissioner a\ndetailed explanation of the reason that the insurer cannot obtain the\ninformation and the  identity of the holder of information. Failure of the\ninsurer to provide the information without good cause may result in a civil\npenalty pursuant to KRS 304.99-020.\n(2) The commissioner shall exercise his or her power under subsection (1) of this\nsection only if the examination of the insurer under KRS Chapter 304 is inadequate\nor the interests of the policyholders of such insurer may be adversely affected.\n(3) The commissioner may retain at the registered insurer's expense such attorneys,\nactuaries, accountants, and other experts not otherwise a part of the commissioner's\nstaff as shall be reasonably necessary to assist in the conduct of the examination\nunder subsection (1) of this section. Any persons so retained shall be under the\ndirection and control of the commissioner and shall act in a purely advisory\ncapacity.\n(4) Each registered insurer producing for examination records, books, and papers\npursuant to subsection (1) of this section shall be liable for and shall pay the\nexpense of such examination i n accordance with the provisions of KRS Chapter\n304.\n(5) If the insurer fails to comply with an order, the commissioner shall have the power\nto examine its affiliates to obtain the information, and may subpoena witnesses in\naccordance with KRS 304.2-340.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40305","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:56Z","sha256":"66f8af6c0f96d510bdf7039ca48675f37bc81cfce8e02efdd3e1d2c859998cf4","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.37-030","next":"us-ky/krs-304.37-050"},"notice":"GroundRules: Original legal text. Not legal advice."}