SEC. 83-1-25. Commissioner of Insurance to conduct financial examinations of domestic insurance companies.

The Commissioner of Insurance shall carefully examine the affairs of each domestic company as to its financial ability and condition as often as once in three (3) years. He shall also make an examination of any such company whenever he deems it prudent to do so, or upon the request of five (5) or more of the stockholders, policyholders, creditors, or other persons pecuniarily interested therein, who shall make affidavit of their belief with specifications of their reasons therefor, that such company is in an unsound condition. Such examination shall be made by the commissioner, or by his accredited representatives, and such companies shall pay the proper charges incurred in such examination, including the expense of the commissioner or his accredited representative. Such compensation and expense shall not exceed that approved by the National Association of Insurance Commissioners for all examiners on such examinations, itemized account of such charges being rendered to and approved by the Commissioner of Insurance.

The results of audits performed hereunder by the Commissioner of Insurance shall be furnished to the State Tax Commission within thirty (30) days of completion. Nothing herein shall be construed to prohibit the State Tax Commission from performing such additional audits or verifications as it may deem necessary to insure the proper payment of taxes.

SOURCES: [Codes, 1906, Sec. 2565; Hemingway's 1917, Sec. 5030; 1930, Sec. 5126; 1942, Sec. 5628; Laws, 1944, ch. 322; 1946, ch. 355, Sec. 1; 1958, ch. 432; 1966, ch. 520, Sec. 1; 1972, ch. 325, Sec. 1; 1982, ch. 351, Sec. 11, reenacted, ch. 366, Sec. 11; 1984, ch. 462, Sec. 4; reenacted, 1990, ch. 559, Sec. 14, eff from and after July 1, 1990, and shall stand repealed from and after June 30, 1996] Repealed by Laws, 1992, ch. 319, Sec. 10, eff from and after July 1, 1992. Reenacted, Laws, 1996, ch. 313, Sec. 13, eff from and after June 30, 1996

1997 Amendment

SECTION 3. Section 83-1-151, Mississippi Code of 1972, is amended as follows:

83-1-151. As used in Sections 83-1-151 through 83-1-169, the following items shall have the meanings ascribed herein unless the context indicates otherwise:

(a) "Insurer" means and includes every person engaged as indemnitor, surety or contractor in the business of entering into contracts of insurance or of annuities as limited to:

(i) Any insurer who is doing an insurer business, or has transacted insurance in this state, and against whom claims arising from that transaction may exist now or in the future.

(ii) Any fraternal benefit society which is subject to the provisions of Section 83-29-1 et seq.

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(iii) All corporate bodies organized for the purpose of carrying on the business of mutual insurance subject to the provisions of Section 83-31-1 et seq.

(iv) All health maintenance organizations established under Section 41-7-401.

(b) "Exceeded its powers" means the following conditions:

(i) The insurer has refused to permit examination of its books, papers, accounts, records or affairs by the commissioner, his deputies, employees or duly commissioned examiners;

(ii) A domestic insurer has unlawfully removed from this state books, papers, accounts or records necessary for an examination of the insurer;

(iii) The insurer has failed to promptly comply with the applicable financial reporting statutes or rules and departmental requests relating thereto;

(iv) The insurer has neglected or refused to comply with an order of the commissioner to make good, within the time prescribed by law, any prohibited deficiency in its capital, capital stock or surplus;

(v) The insurer is continuing to transact insurance or write business after its license has been revoked or suspended by the commissioner;

(vi) The insurer, by contract or otherwise, has unlawfully or has in violation of an order of the commissioner or has without first having obtained written approval of the commissioner if approval is required by law:

(A) Totally reinsured its entire outstanding business, or

(B) Merged or consolidated substantially its entire property or business with another insurer;

(vii) The insurer engaged in any transaction in which it is not authorized to engage under the laws of this state;

(viii) The insurer refused to comply with a lawful order of the commissioner.

(c) "Consent" means agreement to administrative supervision by the insurer.

(d) "Commissioner" means the Commissioner of Insurance.

(e) "Department" means the Department of Insurance.

SOURCE: 1997 Laws, Chapter 307, Sec. 3, SB2066, Effective July 1, 1997.