Section 2051.90  Examination

a)         The Director or his designee may examine any applicant for registration or any registrant when he obtains information which gives him reason to believe that the applicant or registrant may be in violation of this Part or any applicable provision of the Illinois Insurance Code, when he receives a complaint or when the applicant has a history of violations of the Illinois Insurance Code.

b)         Any administrator being examined shall provide to the Director or his designee convenient and free access, at all reasonable hours at their offices, to all books, records, documents and other papers relating to such administrator's business affairs.  The Director or his designee shall not have access to beneficiary medical records which are protected by the Medical Studies Act [735 ILCS 5/8-2101 et seq.].

c)         The Director or his designee may administer oaths and thereafter examine any individual about the business of the administrator.

d)         The expenses of examination under this Section shall be assessed against the administrator being examined in accordance with Section 408(3) of the Illinois Insurance Code [215 ILCS 5/408(3)].

e)         The examiner designated by the Director shall make a written report if he alleges that there is a violation of this Part, any applicable provisions of the Illinois Insurance Code or any other applicable Part of Title 50 of the Illinois Administrative Code.  The report shall be verified by the examiner. The report must be made to the Director within 45 days after the conclusion of the examination.  If no report is to be made, the administrator shall be so notified.

f)          If a report is made, the Director shall either deliver a duplicate thereof to the administrator being examined or send such duplicate by certified or registered mail to the administrator's address specified in the records of the Department.  The Director shall afford the administrator an opportunity to request a hearing to object to the report.  The administrator may request a hearing within 30 days after receipt of the duplicate of the examination report by giving the Director written notice of such request together with written objections to the report.  Any hearing shall be conducted in accordance with Sections 402 and 403 of the Illinois Insurance Code [215 ILCS 5/402 and 403] and 50 Ill. Adm. Code 2402.  The right to hearing is waived if the delivery of the report is refused or the report is otherwise undeliverable to the address on file with the Department or the administrator does not timely request a hearing.  After the hearing or upon expiration of the time period during which an administrator may request a hearing,  if the examination reveals that the administrator is operating in violation of any applicable provisions of the Illinois Insurance Code, any applicable Part of Title 50 of the Illinois Administrative Code or prior order, the Director, in the written order, may require the administrator to take action to correct such violation in accordance with the report or examination hearing.   If the Director issues an order, it shall be issued within 90 days after the report is filed, or if there is a hearing, within 90 days after the conclusion of the hearing.  The order is subject to review under the Administrative Review Law.