(a)To assure the faithful performance of obligations
under insolvency, each mechanical breakdown insurance
organization certified under W.S. 26-37-106 shall deposit and
maintain with the commissioner, trust securities of the type
eligible as investments by insurers under chapter 7 of this
code. The trust securities required by this section shall at all
times have the following market value:
(i)For an organization not transacting mechanical
breakdown insurance in this state prior to January 1, 1987 and
before issuing a certificate of authority under this chapter and
receiving premiums, an initial amount of fifty thousand dollars
($50,000.00);
(ii)For an organization transacting mechanical
breakdown insurance in this state prior to January 1, 1987 and
having in force less than three hundr
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(a) To assure the faithful performance of obligations
under insolvency, each mechanical breakdown insurance
organization certified under W.S. 26-37-106 shall deposit and
maintain with the commissioner, trust securities of the type
eligible as investments by insurers under chapter 7 of this
code. The trust securities required by this section shall at all
times have the following market value:
(i) For an organization not transacting mechanical
breakdown insurance in this state prior to January 1, 1987 and
before issuing a certificate of authority under this chapter and
receiving premiums, an initial amount of fifty thousand dollars
($50,000.00);
(ii) For an organization transacting mechanical
breakdown insurance in this state prior to January 1, 1987 and
having in force less than three hundred thousand dollars
($300,000.00) of gross written premiums, membership fees or
similar charges, a sum equal to fifty percent (50%) of the gross
premiums in force or fifty thousand dollars ($50,000.00),
whichever is less;
(iii) For an organization transacting mechanical
breakdown insurance in this state prior to January 1, 1987 and
having in force more than three hundred thousand dollars
($300,000.00) but less than seven hundred fifty thousand dollars
($750,000.00) of gross written premiums, membership fees or
similar charges in this state, an amount not less than
seventy-five thousand dollars ($75,000.00); and
(iv) For an organization transacting mechanical
breakdown insurance in this state prior to January 1, 1987 and
having in force seven hundred fifty thousand dollars
($750,000.00) or more of gross written premiums, membership fees
or similar charges in this state, an amount equal to one hundred
thousand dollars ($100,000.00).
(b) An organization may instead of depositing securities
required under subsection (a) of this section and subject to the
approval of the commissioner, file with the commissioner a
surety bond issued by an authorized surety insurer under this
code. The bond shall be for that purpose stated under
subsection (a) of this section and the commissioner shall not
approve any bond if the protection against insolvency is not
equal to the protection afforded by those securities under
subsection (a) of this section.
(c) An organization may instead of any deposit of
securities or filing of surety bonds required under subsections
(a) and (b) of this section and subject to approval of the
commissioner, file a paid contractual liability insurance policy
with the commissioner. This policy shall be issued by an
insurer authorized to transact insurance in this state and shall
be in an amount equal to or greater than fifty percent (50%) of
gross written premiums in this state. The commissioner shall
not approve any contractual liability insurance policy if the
protection against insolvency is not equal to the protection
afforded by those securities under subsection (a) of this
section.
(d) Securities, bonds or insurance policies posted or
filed pursuant to this section shall in case of insolvency or
impairment of any organization, be for the benefit of and
subject to action by any person sustaining any injury due to the
failure of the organization to faithfully perform its
obligations to its insureds.
(e) The state is responsible for the safekeeping of all
securities deposited with the commissioner under this chapter.
The securities are not subject to taxation but shall be held
exclusively to guarantee the performance of the obligations of
the organization to its insureds.
(f) The deposit, bond or insurance shall be maintained
unimpaired as long as the mechanical breakdown insurance
organization continues to operate in this state. If the
organization ceases to do business in this state and furnishes
proof satisfactory to the commissioner that it has discharged or
otherwise adequately provided for all its obligations to its
insureds in this state, the state shall release the deposited
securities to the entitled parties on presentation of the state
treasurer's receipts for those securities or shall release any
filed bond or insurance policy.
(g) At any time the commissioner may enter an order
increasing the amount of the deposit, bond or insurance
specified under subsections (a), (b) and (c) of this section if
he finds there has been a substantial change in the facts
including an increase in the amount of premiums, membership fees
or similar charges in force in this state on which the original
determination was based. Within thirty (30) days after receipt
of notice, the organization may submit a request to the
commissioner for a hearing on the order for modification. The
commissioner shall hold a hearing within thirty (30) days after
receipt of the request. Failure to meet the modified
requirements within thirty (30) days after a final decision or
after expiration of the thirty (30) day period for submitting a
request for hearing is grounds for rehabilitation pursuant to
chapter 28 of this code.