To aid in the detection and prevention of insurance insolvencies:
A. the superintendent shall:
(1) notify the superintendents in other states, within thirty days following the action taken or the date the action occurs, when the superintendent takes any of the following actions against a member insurer:
(a) revokes a license;
(b) suspends a license; or
(c) makes a formal order that the company restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or a part of its business or increase capital, surplus or another account for the security of policy owners or creditors;
(2) report to the board when the superintendent has taken an action set forth in Paragraph (1) of this subsection or has received a report from another superintendent indicating that an action has been taken in another state. The report to the board shall contain all significant details of the action taken or of the report received from another superintendent;
(3) report to the board when the superintendent has reasonable cause to believe from an examination, whether completed or in process, of a member insurer that the insurer may be an impaired or insolvent insurer; and
(4) furnish to the board the national association of insurance commissioners' insurance regulatory information system ratios and listings of companies not included in the ratios developed by the national association of insurance commissioners. The board may use that information in carrying out its duties and responsibilities pursuant to this section. The report shall be kept confidential by the board until it is made public by the superintendent or other lawful authority;
B. the superintendent may seek the advice and recommendations of the board concerning a matter affecting the duties and responsibilities of the superintendent regarding the financial condition of member insurers and companies seeking admission to transact insurance business in this state; and
C. the board may, upon majority vote:
(1) notify the superintendent of information indicating that a member insurer may be an impaired or insolvent insurer;
(2) make reports and recommendations to the superintendent upon any matter germane to the solvency, liquidation, rehabilitation or conservation of a member insurer or germane to the solvency of a company seeking to do insurance business in this state. The reports and recommendations are not public documents; and
(3) make recommendations to the superintendent for the detection and prevention of insurers' insolvencies.
History: Laws 1984, ch. 127, § 760; 2012, ch. 9, § 14.
ANNOTATIONSThe 2012 amendment, effective July 1, 2012, provided for notice to other states and the board when the superintendent has taken disciplinary action against a member insured or has reasonable cause to believe that an insurer may be impaired or insolvent; required the superintendent to give the board information concerning insurers that do not meet national standards; permitted the superintendent to consult with the board regarding the financial condition of insurers; added Subsection A; deleted former Subsection B, which provided for the examination of member insurers which the board believed to be insolvent or financially impaired; added the current Subsection B; deleted former Subsection C, which required the superintendent to report to the board if the superintendent has reasonable cause to believe that a member insurer is solvent or financially impaired; in the current Subsection C, in the introductory sentence, after "the board", deleted "of directors shall" and added "may", in Paragraph (1), after "insolvent or in a financial condition where it will be unable to fulfill its contractual obligations and hazardous to the policyholders or the public" added "an impaired or insolvent insurer" and in Paragraph (2), in the first sentence, after "member insurer", added the remainder of the sentence, and in the second sentence, after "reports and recommendations", deleted "shall not be considered" and added "are not"; and deleted former Subsection F, which required the board to prepare a report of the history and causes of the insolvency of a member insurer.