(1) The department shall annually conduct an examination of each deferred deposit loan licensee's lending operations to ensure compliance with both statute and administrative rule.

(2) The examination shall consist of a comprehensive review of the records, operations and affairs of the licensee. The review shall include inquiry into:

(a) accounting and financial records;

(b) records of the borrower's files including:

(i) evidence of required disclosures;

(ii) use of a department approved loan agreement; and

(iii) assurance of continued capital adequacy and bonding.