Post-Examination Procedure

PURPOSE: This rule implements the purposes of section 374.185, RSMo, and establishes uniform post-examination standards for the director and the company following a market conduct examination pursuant to sections 374.202 to 374.207, RSMo. (1) The post-examination procedure will be conducted in a manner consistent with the purposes of section 374.185, RSMo. In accordance with the National Association of Insurance Commissioners (NAIC) market conduct uniform examination procedures and section 374.205, RSMo, the director will adhere to the following timelines and procedures following the completion of an examination, unless the division and the company mutually agree to modify the timeline: (A) No later than sixty (60) days following completion of the examination, the examiner-in-charge or audit manager will file with the department a verified draft report of examination under oath. Completion of the examination will be defined as the date the examiner-in-charge signs and submits the draft report to the audit manager for approval and signature; (B) Within ten (10) days of receipt of the verified draft report, the division will send the draft report via certified mail to the company together with a notice which affords the company examined a reasonable opportunity to respond with written comments or make a written submission or rebuttal with respect to any matter contained in the examination report; (C) The company is not obligated to submit written comments, submissions, or rebuttals to the draft report as allowed in subsection (1)(B) of this rule. However, if the company chooses to do so, its written response is due within thirty (30) days of receipt of the draft report, unless a mutual agreement is reached with the division to extend the deadline; (D) The division will make a good faith effort to informally resolve issues and prepare a final report after receipt of the company’s written comments, submissions, or rebuttals; (E) The division may modify the examination findings and finalize the report, as appropriate. Upon determination that the report is final, the division will forward a copy of the final report to the company along with a notice apprising the company of its rights under subsection (1)(F), below; (F) The company may, within thirty (30) days of receipt of the final report, accept the final report, accept the findings of the report, file written comments, or petition the director to modify the findings with a written request for a confidential investigatory hearing pursuant to section 374.205.3(3)(c). The company is not obligated to submit a response to the final report. The director may allow an additional thirty (30) days if requested by the company. If the company submits a written request for a hearing within the time allowed, a hearing will be held in accordance with the process in section 374.205.3(4), RSMo. Within twenty (20) days of the conclusion of the hearing, the director will issue an order pursuant to section 374.205.3(3) (a), RSMo; and (G) If a hearing pursuant to subsection (1)(F) above is not requested, within thirty (30) days of the end of the period allowed for the receipt of an acceptance or comments by the company, the director will fully consider and review the report, together with any written comments, any relevant portions of the examiner’s work papers, and any proposed settlement, and enter an order pursuant to section 374.205.3(3)(a), (b), or (d). (2) Ten (10) days after adoption of the final examination report pursuant to section 374.205.3(3)(a), the department will make available written and electronic versions of the final report. Both versions of the final report will include any written response of the company, at its option, and any negotiated text of the examination report and the concluding document, whether that is an administrative order of the director, curative order of the director, or a stipulation of settlement and order. (3) All orders entered pursuant to section 374.205.3(3)(a) under subsections (1)(F) or (1)(G) will be accompanied by findings and conclusions resulting from the director’s consideration and review of the examination report, relevant examiner work papers, and any written submissions, rebuttals, or comments submitted by the company. Any order issued pursuant to section 374.205.3(3)(b), (c), or (d) under subsections (1)(F) or (1)(G) will not be considered a final order. Any order issued pursuant to section 374.205.3(3)(a) under subsections (1)(F) or (1)(G) will be considered a final administrative decision and may be appealed pursuant to section 536.150, RSMo, and will be served upon the company by certified mail, together with a copy of the final examination report. 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 Dec. 13, 2018, effective July 30, 2019. *Original authority: 374.045, RSMo 1967, amended 1993, 1995, 2008; 374.185, RSMo AND INSURANCE 2007, amended 2016; 374.205, RSMo 1992, amended 1997, 1999, 2016; and 374.207, RSMo 1992.