# N.D. Cent. Code § 26.1-33.4-06: 26.1-33.4-06. Examination > North Dakota · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-06 ## Section - **Citation:** N.D. Cent. Code § 26.1-33.4-06 - **Heading:** 26.1-33.4-06. Examination - **Jurisdiction:** North Dakota - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** ND Code / Title 26.1 / Chapter 26.1-33.4 / Section 26.1-33.4-06 ## Text 26.1-33.4-06. Examination 1. The commissioner, when the commissioner deems it reasonably necessary to protect the interests of the public, may examine the business and affairs of any licensee or applicant for a license. The commissioner may order any licensee or applicant to produce any records, books, files, or other information reasonably necessary to ascertain whether such licensee or applicant is acting or has acted in violation of the law or otherwise contrary to the interests of the public. The expenses incurred in conducting any examination must be paid by the licensee or applicant. 2. In lieu of an examination under this chapter of any foreign or alien licensee licensed in this state, the commissioner may, at the commissioner's discretion, accept an examination report on the licensee as prepared by the commissioner for the licensee's state of domicile or port-of-entry state. 3. Names of and individual identification data for all owners and insureds must be considered private and confidential information and may not be disclosed by the commissioner unless required by law. 4. Records of all consummated transactions and life settlement contracts must be maintained by the provider for three years after the death of the insured and must be available to the commissioner for inspection during reasonable business hours. 5. a. Upon determining that an examination should be conducted, the commissioner shall issue an examination warrant appointing one or more examiners to perform the examination and instructing the examiners as to the scope of the examination. In conducting the examination, the examiner shall use methods common to the examination of any life settlement licensee and should use those guidelines and procedures set forth in an examiners' handbook adopted by a national organization. b. Every licensee or person from whom information is sought, its officers, directors, and agents shall provide to the examiners timely, convenient, and free access at all reasonable hours at its offices to all books, records, accounts, papers, documents, assets, and computer or other recordings relating to the property, assets, business, and affairs of the licensee being examined. The officers, directors, employees, and agents of the licensee or person shall facilitate the examination and aid in the examination so far as it is in their power to do so. The refusal of a licensee, by its officers, directors, employees, or agents, to submit to examination or to comply with any reasonable written request of the commissioner is grounds for suspension or refusal of, or nonrenewal of any license or authority held by the licensee to engage in the life settlement business or other business subject to the commissioner's jurisdiction. Any proceedings for suspension, revocation, or refusal of any license or authority must be conducted pursuant to section 26.1-01-03.1. c. The commissioner may issue subpoenas, administer oaths, and examine under oath any person as to any matter pertinent to the examination. Upon the failure or refusal of a person to obey a subpoena, the commissioner may petition a court of competent jurisdiction, and upon proper showing, the court may enter an order compelling the witness to appear and testify or produce documentary evidence. d. When making an examination under this chapter, the commissioner may retain attorneys, appraisers, independent actuaries, independent certified public accountants, or other professionals and specialists as examiners, the reasonable cost of which must be borne by the licensee that is the subject of the examination. e. This chapter does not limit the commissioner's authority to terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination are prima facie evidence in any legal or regulatory action. ch must be borne by the licensee that is the subject of the examination. e. This chapter does not limit the commissioner's authority to terminate or suspend an examination in order to pursue other legal or regulatory action pursuant to the insurance laws of this state. Findings of fact and conclusions made pursuant to any examination are prima facie evidence in any legal or regulatory action. f. This chapter does not limit the commissioner's authority to use and, if appropriate, to make public any final or preliminary examination report, any examiner or licensee workpapers, or other documents, or any other information discovered or developed during the course of any examination in the furtherance of any legal or regulatory action which the commissioner determines appropriate. 6. a. Examination reports must be composed of only facts appearing upon the books, from the testimony of its officers or agents, or other persons examined concerning its affairs, and such conclusions and recommendations as the examiners find reasonably warranted from the facts. b. No later than sixty days following completion of the examination, the examiner in charge shall file with the commissioner a verified written report of examination under oath. Upon receipt of the verified report, the commissioner shall transmit the report to the licensee examined, together with a notice that shall afford the licensee examined a reasonable opportunity of not more than thirty days to make a written submission or rebuttal with respect to any matters contained in the examination report and which shall become part of the report or to request a hearing on any matter in dispute. c. If the commissioner determines that regulatory action is appropriate as a result of an examination, the commissioner may initiate any proceedings or actions provided by law. 7. a. Names and individual identification data for all owners, purchasers, and insureds must be considered private and confidential information and may not be disclosed by the commissioner, unless the disclosure is to another regulator, is required under law, or is allowed under section 26.1-03-19.4. b. Except as otherwise provided in this chapter, all examination reports, working papers, recorded information, documents, and copies thereof produced by, obtained by, or disclosed to the commissioner or any other person in the course of an examination made under this chapter, or in the course of analysis or investigation by the commissioner of the financial condition or market conduct of a licensee must be confidential by law and privileged, is not subject to the state's open records laws, is not subject to subpoena, and is not subject to discovery or admissible in evidence in any private civil action. The commissioner may use the documents, materials, or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. The licensee being examined may have access to all documents used to make the report. 8. a. An examiner may not be appointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This section may not be construed to automatically preclude an examiner from being: (1) An owner; (2) An insured in a life settlement contract or insurance policy; or ointed by the commissioner if the examiner, either directly or indirectly, has a conflict of interest or is affiliated with the management of or owns a pecuniary interest in any person subject to examination under this chapter. This section may not be construed to automatically preclude an examiner from being: (1) An owner; (2) An insured in a life settlement contract or insurance policy; or (3) A beneficiary in an insurance policy that is proposed for a life settlement contract. b. Notwithstanding the requirements of this subsection, the commissioner may retain from time to time, on an individual basis, qualified actuaries, certified public accountants, or other similar individuals who are independently practicing their professions, even though these persons may from time to time be similarly employed or retained by persons subject to examination under this chapter. 9. a. No cause of action arises nor may any liability be imposed against the commissioner, the commissioner's authorized representatives, or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out this chapter. b. No cause of action arises, nor may any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner or the commissioner's authorized representative or examiner pursuant to an examination made under this chapter, if the act of communication or delivery was performed in good faith and without fraudulent intent or the intent to deceive. This subdivision does not abrogate or modify in any way any common-law or statutory privilege or immunity heretofore enjoyed by any person identified in subdivision a. c. A person identified in subdivision a or b is entitled to an award of attorney's fees and costs if the person is the prevailing party in a civil cause of action for libel, slander, or any other relevant tort arising out of activities in carrying out the provisions of this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is "substantially justified" if it had a reasonable basis in law or fact at the time that it was initiated. 10. The commissioner may investigate suspected fraudulent life settlement acts and persons engaged in the business of life settlements. 11. The commissioner may charge for examinations as provided for under section 26.1-01-07. ## Nearby sections - [N.D. Cent. Code § 26.1-33.4-01 26.1-33.4-01. Definitions](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-01.md) - [N.D. Cent. Code § 26.1-33.4-02 26.1-33.4-02. Licensing and bonding requirements](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-02.md) - [N.D. Cent. Code § 26.1-33.4-03 26.1-33.4-03. License suspension, revocation, or refusal to renew](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-03.md) - [N.D. Cent. Code § 26.1-33.4-04 26.1-33.4-04. Contract requirements](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-04.md) - [N.D. Cent. Code § 26.1-33.4-05 26.1-33.4-05. Reporting requirements and privacy](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-05.md) - [N.D. Cent. Code § 26.1-33.4-06 26.1-33.4-06. Examination](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-06.md) - [N.D. Cent. Code § 26.1-33.4-07 26.1-33.4-07. Advertising](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-07.md) - [N.D. Cent. Code § 26.1-33.4-08 26.1-33.4-08. Disclosures to owners](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-08.md) - [N.D. Cent. Code § 26.1-33.4-09 26.1-33.4-09. Disclosure to insurer](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-09.md) - [N.D. Cent. Code § 26.1-33.4-10 26.1-33.4-10. General rules](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-10.md) - [N.D. Cent. Code § 26.1-33.4-11 26.1-33.4-11. Authority to adopt regulations - Conflict of laws](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-11.md) - [N.D. Cent. Code § 26.1-33.4-12 26.1-33.4-12. Prohibited practices](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-12.md) - [N.D. Cent. Code § 26.1-33.4-13 26.1-33.4-13. Fraud prevention and control](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-13.md) - [N.D. Cent. Code § 26.1-33.4-14 26.1-33.4-14. Injunctions - Civil remedies - Cease and desist](https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-14.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_ND_T26.1_C26.1-33.4_S26.1-33.4-06. Check the current official text before relying on it. Not legal advice.