[§431:2D-103]  Domestic responsibility and

deference to other states.  (a)  The commissioner shall be responsible for

conducting market conduct examinations for policyholder protection, which shall

be accomplished by comprehensive or targeted examinations of domestic insurers

or the affiliates of domestic insurers and targeted examinations of foreign

insurers or the affiliates of foreign insurers as deemed necessary by the

commissioner, based on the results of market analysis.  The commissioner may

delegate responsibility for conducting an examination of a domestic insurer,

foreign insurer, or an affiliate of an insurer to the insurance commissioner of

another state if that state's insurance commissioner agrees to accept the

delegated responsibility for the examination.

     (b)  The commissioner may delegate

responsibility to an insurance commissioner of a state in which the domestic

insurer, foreign insurer, or affiliate has a significant number of policies or

significant premium volume, as determined by the commissioner by rule.

     (c)  If the commissioner elects to delegate

responsibility for examining an insurer, the commissioner shall accept a report

of the examination prepared by the commissioner to whom the responsibility has

been delegated.

     (d)  In lieu of conducting a market conduct

examination of an insurer, the commissioner shall accept a report of a market

conduct examination on the insurer prepared by the insurance commissioner of

the insurer's state of domicile or another state; provided:

     (1)  The laws of that state applicable to the subject

of the examination are deemed by the commissioner to be substantially similar

to those of this State;

     (2)  The examining state has a market conduct

surveillance system that the commissioner deems comparable to the market

conduct surveillance system required under this article; and

     (3)  The examination from the other state's insurance

commissioner has been conducted within the past three years.

     (e)  If the insurance commissioner to whom the

examination responsibility was delegated pursuant to subsection (a) or the

report of a market conduct examination prepared by the insurance commissioner

of another state pursuant to subsection (d), did not evaluate the specific area

or issue of concern to the commissioner, the commissioner may pursue a targeted

examination or market analysis of the unexamined area pursuant to this article.

     (f)  The commissioner's determination under

subsection (d) is discretionary and is not subject to appeal.

     (g)  Subject to a determination under

subsection (d), if a market conduct examination conducted by another state

results in a finding that an insurer should modify a specific practice or

procedure, the commissioner shall accept documentation that the insurer has

made a similar modification in this State, in lieu of initiating a market

conduct action or examination related to that practice or procedure.  The

commissioner may require other or additional practice or procedure

modifications as are necessary to achieve compliance with specific state laws

or regulations, which differ substantially from those of the state that

conducted the examination. [L 2007, c 227, pt of §1]