§2091. Prevention of insolvencies
A. To aid in the detection and prevention of member insurer insolvencies or
impairments, it shall be the duty of the commissioner:
(1)(a) To notify the commissioner of insurance, or other appropriate official, of all
the other states, territories of the United States, and the District of Columbia when he takes
any of the following actions against a member insurer:
(ii)Suspends any license.
(iii)Makes any formal order that the member insurer restrict its premium writing,
obtain additional contributions to surplus, withdraw from the state, reinsure all or any part
of its business, or increase capital, surplus, or any other account for the security of
policyholders, contract owners, certificate holders, or creditors.
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§2091. Prevention of insolvencies
A. To aid in the detection and prevention of member insurer insolvencies or
impairments, it shall be the duty of the commissioner:
(1)(a) To notify the commissioner of insurance, or other appropriate official, of all
the other states, territories of the United States, and the District of Columbia when he takes
any of the following actions against a member insurer:
(i) Revokes any license.
(ii) Suspends any license.
(iii) Makes any formal order that the member insurer restrict its premium writing,
obtain additional contributions to surplus, withdraw from the state, reinsure all or any part
of its business, or increase capital, surplus, or any other account for the security of
policyholders, contract owners, certificate holders, or creditors.
(b) The notice shall be mailed to all such commissioners or other appropriate
officials within thirty days following the action taken or the date on which such action
occurs.
(2) To report to the board of directors when he has taken any of the actions set forth
in Paragraph (1) of this Subsection or has received a report from any other commissioner
indicating that any such action has been taken in another state. Such report to the board of
directors shall contain all significant details of the action taken or the report received from
another commissioner or other appropriate official.
(3) To report to the board of directors when he has reasonable cause to believe from
any examination, whether completed or in process, of a member insurer that the member
insurer may be an impaired or insolvent insurer.
(4) To furnish to the board of directors of the National Association of Insurance
Commissioners (NAIC), Insurance Regulatory Information System (IRIS), ratios and listings
of companies not included in the ratios developed by the National Association of Insurance
Commissioners. The board may then use the information contained therein in carrying out
its duties and responsibilities. The report and the information contained therein shall be kept
confidential by the board of directors.
B. The commissioner may seek the advice and recommendation of the board of
directors concerning any matter affecting his duties and responsibilities regarding the
financial condition of member insurers and insurers or health maintenance organizations
seeking admission to transact business in this state.
C. The board of directors may, upon majority vote, make reports and
recommendations to the commissioner upon any matter germane to the solvency, liquidation,
rehabilitation, or conservation of any member insurer or germane to the solvency of any
insurer or health maintenance organization seeking to transact business in this state. The
reports and recommendations shall not be considered public records.
D. It shall be the duty of the board of directors, upon majority vote, to notify the
commissioner of any information indicating any member insurer may be an impaired or
insolvent insurer.
E. Repealed by Acts 2018, No. 97, §2.
F. The board of directors may, upon majority vote, make recommendations to the
commissioner for the detection and prevention of insurer insolvencies.
G. Repealed by Acts 2018, No. 97, §2.