Examination Procedures

PURPOSE: This rule implements the purposes of section 374.185, RSMo, and establishes uniform standards for the director in applying the discretion authorized in issuing examination warrants for market conduct examinations pursuant to sections 374.202 to 374.207, RSMo. (1) Market conduct examinations will be conducted in accordance with the provisions set forth in the National Association of Insurance Commissioners (NAIC) Market Regulation Handbook, or in department regulations, if inconsistent with the NAIC Market Regulation Handbook, for the type of examination being conducted. (2) The examiner-in-charge will conduct a pre-examination conference with the company examination coordinator and key personnel to clarify expectations approximately thirty (30) days prior to commencement of the examination. (3) If the insurer or company believes there is a significant increase from the original work plan’s estimates of cost or a significant increase in the amount of data requested, the insurer or company may submit a request, in writing, for a review of the examination costs or data requests. Such request shall be submitted to the market regulation division director or chief examiner. The market regulation division director or chief examiner will provide a written response to the request within twenty (20) business days. Any request or response under this section shall be considered examination workpapers, subject to the confidentiality provisions of section 374.205, RSMo. (4) If an examination is expanded beyond the scope of the examination warrant the director will modify the examination warrant or issue a new examination warrant and provide written notice to the company explaining the extent of the expansion and the reasons for the expansion. The division will provide a revised work plan to the company before the beginning of any significantly expanded examination, unless extraordinary circumstances indicate immediate action is necessary to avoid a risk to consumers. (5) Prior to the conclusion of a market conduct examination, the examiner-in-charge will schedule and conduct an exit conference with the company as outlined by the NAIC Market Regulation Handbook. AUTHORITY: sections 374.045, 374.185, 374.205, and 374.207, RSMo 2016.* Original rule filed April 1, 2008, effective Nov. 30, 2008. Amended: Filed May 13, 2019, effective Nov. 30, 2019. *Original authority: 374.045, RSMo 1967, amended 1993, 1995, 2008; 374.185, RSMo 2007, 2016; 374.205, RSMo 1992, amended 1997, 1999; and 374.207, RSMo 1992, 1997, 1999, 2016.