§ 27-34.3-12. Prevention of insolvencies.
To aid in the detection and prevention of insurer insolvencies or impairments:
(a) It shall be the duty of the commissioner:
(1) To notify the commissioners of all the other states, territories of the United States,
and the District of Columbia within thirty (30) days following the action taken or
the date the action occurs, when the commissioner takes any of the following actions
against a member insurer:
(i) Revocation of license;
(ii) Suspension of license; or
(iii) Makes a formal order that the company 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 or creditors.
(2) To report to the board of directors when the commissioner has taken any of the actions
set forth in subsection (a)(1) or has received a report from any other commissioner
indicating that this action has been taken in another state. The report to the board
of directors shall contain all significant details of the action taken or the report
received from another commissioner.
(3) 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 company
that the company may be an impaired or insolvent insurer.
(4) To furnish to the board of directors the NAIC insurance regulatory information system
(IRIS) 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 in the ratios and listings in carrying out its duties and responsibilities
under this section. The report and the information contained in it shall be kept confidential
by the board of directors until the time it is made public by the commissioner or
other lawful authority.
(b) The commissioner may seek the advice and recommendations of the board of directors
concerning any matter affecting the duties and responsibilities of the commissioner
regarding the financial condition of member insurers and companies seeking admission
to transact insurance 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 company seeking
to do insurance business in this state. The reports and recommendations shall not
be considered public documents.
(d) The board of directors may, upon majority vote, notify the commissioner of any information
indicating a member insurer may be an impaired or insolvent insurer.
(e) The board of directors may, upon majority vote, make recommendations to the commissioner
for the detection and prevention of insurer insolvencies.