(a)  The director and any of his or her examiners may conduct annual and quarterly financial analysis under this chapter of each company licensed in this state. All authority granted in conducting an examination under this chapter shall apply to the conduct of a financial analysis of a company except that a warrant is not required and the financial analysis will be conducted based on guidelines and procedures set forth in the Financial Analysis Handbook as adopted by the National Association of Insurance Commissioners. The director may also employ any other guidelines or procedures as the director may deem appropriate.

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Terms Used In Rhode Island General Laws 27-13.1-3.1

  • Company: means a person engaging in or proposing or attempting to engage in any transaction or kind of insurance or surety business and any person or group of persons who may otherwise be subject to the administrative, regulatory or taxing authority of the director;

    (2)  "Department" means the department of business regulation;

    (3)  "Director" means the director of the department of business regulation of this state or his or her designee;

    (4)  "Examiner" means an individual or firm having been authorized by the director to conduct an examination or financial analysis under this chapter;

    (5)  "Insurer" means any insurance company doing business in this state; and

    (6)  "Person" means an individual, aggregation of individuals, trust, association, partnership or corporation, or any affiliate thereof. See Rhode Island General Laws 27-13.1-2

(b)  The financial analysis of a company is a continuous process utilized primarily for monitoring the financial strength of a company and therefore a final report is not required, however, where there are significant financial concerns a financial examination under this chapter will be conducted and an examination report will be issued in accordance with § 27-13.1-5.

(c)  All correspondence, emails, memorandums and other documentation used in the financial analysis process are considered to be confidential financial analysis workpapers in accordance with § 27-13.1-5(f).

(d)  The total cost of the financial analysis shall be borne by the company as set forth in § 27-13.1-7.

History of Section.
P.L. 2009, ch. 301, § 2; P.L. 2009, ch. 302, § 2.