§ 7711 — Powers of the superintendent and the board of directors

New York § 7711

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 77: The Life and Health Insurance Company Guaranty Corporation of New York Act

Text

§ 7711. Powers of the superintendent and the board of directors. In\naddition to the duties and powers enumerated elsewhere in this chapter:\n (a) The superintendent may suspend or revoke, after notice and\nhearing, the certificate of authority to transact insurance in this\nstate of any member insurer which fails to pay an assessment when due or\nfails to comply with the plan of operation. As an alternative the\nsuperintendent may levy a penalty to be paid to the people of this\nstate, after notice and hearing, on any member insurer which fails to\npay an assessment when due. Such penalty shall not exceed five percent\nof the unpaid assessment per month, but no penalty shall be less than\none hundred dollars per month.\n (b) Any action of the board of directors or the corporation may be\nappealed to the superintendent by any member insurer if such appeal is\ntaken within thirty days of the action being appealed. Any final action\nor order of the superintendent shall be subject to judicial review in a\ncourt of competent jurisdiction.\n (c) Upon the request of the superintendent, the board of directors\nshall render advice and make recommendations to the superintendent\nconcerning any matter affecting his duties and responsibilities\nregarding the financial condition of member companies and companies\nseeking admission to transact insurance business in this state.\n (d) The board of directors shall establish a panel of advisors,\nconsisting of representatives of at least thirteen member insurers not\nserving on the board of directors, knowledgeable as to the life and\nhealth insurance business to provide it with information tending to\nindicate that any member insurer or company seeking to do any insurance\nbusiness in this state is or may be in danger of becoming an impaired or\ninsolvent insurer; persons serving on the panel of advisors shall be\ndeemed agents of the corporation for purposes of section seven thousand\nseven hundred sixteen of this article. The board of directors may, upon\nmajority vote, make reports and recommendations to the superintendent\nupon any matter germane to the solvency, liquidation, rehabilitation or\nconservation of any member insurer or germane to the solvency of any\ncompany seeking to do an insurance business in this state. Such reports\nand recommendations shall not be considered public documents. Nothing in\nthis article shall be deemed to limit the ability of a member of the\npanel of advisors or any other person from reporting information germane\nto the solvency of a member insurer or company seeking to do an\ninsurance business in this state to the superintendent or other lawful\nauthority or the corporation.\n (e) It shall be the duty of the board of directors, upon majority\nvote, to notify the superintendent of any information indicating any\nmember insurer may be an impaired or insolvent insurer.\n (f) The board of directors may, upon majority vote, make\nrecommendations to the superintendent for the detection and prevention\nof insolvencies.\n (g) The board of directors shall, at the conclusion of any insurer\ninsolvency in which the corporation was obligated to pay covered claims,\nprepare a report to the superintendent containing such information as it\nmay have in its possession bearing on the history and causes of such\ninsolvency. The corporation shall cooperate with the boards of directors\nof guaranty associations or corporations in other states in preparing a\nreport on the history and causes for insolvency of a particular insurer,\nand may adopt by reference any report prepared by such other\nassociations or corporations.\n