§ 26.1-38.1-09 — Prevention of insolvencies

North Dakota § 26.1-38.1-09

• Jurisdiction: North Dakota
• Title 26.1: Insurance
• Ch. 26.1-38.1: Life and Health Insurance Guaranty Association

Text

1. To aid in the detection and prevention of member insurer insolvencies or impairments,
it is the duty of the commissioner:
a. To notify the commissioners of all the other states, territories of the United States,
and the District of Columbia when the commissioner takes any of the following
actions against a member insurer:
(1) Revokes its license;
(2) Suspends its license; or

(3) 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 policy owners, contract owners, certificate
holders, or creditors.
(4) Such notice must be mailed to all commissioners within thirty days following
the action taken or the date on which such action occurs.
b. To report to the board of directors when the commissioner has taken any of the
actions set forth in subdivision a 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 must contain all significant details of the
action taken or the report received from another commissioner.
c. To report to the board of directors when the commissioner has reasonable cause
to believe from any examination, whether completed or in process, of any
member insurer that such insurer may be an impaired or insolvent insurer.
d. To furnish to the board of directors 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 and the board may use the information contained
therein in carrying out its duties and responsibilities under this section. Such
report and the information contained therein must be kept confidential by the
board of directors until such time as made public by the commissioner or other
lawful authority.
2. The commissioner may seek the advice and recommendations of the board of
directors concerning any matter affecting the commissioner's duties and
responsibilities regarding the financial condition of member insurers of insurers or
health maintenance organizations seeking admission to transact business in this state.
3. The board of directors, upon majority vote, may 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 do business in this state. Such reports
and recommendations may not be considered public documents.
4. The board of directors, upon majority vote, may notify the commissioner of any
information indicating any member insurer may be an impaired or insolvent insurer.
5. The board of directors, upon majority vote, may make recommendations to the
commissioner for the detection and prevention of member insurer insolvencies.