§ 26-42-110 — Prevention of insolvencies

Wyoming § 26-42-110

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 42: WYOMING LIFE AND HEALTH INSURANCE

Text

(a) To aid in the detection and prevention of member
insurer insolvencies or impairments, the commissioner shall:
(i) Notify the commissioners of all the other states,
territories of the United States and the District of Columbia by
mail within thirty (30) days of any of the following actions
taken against a member insurer:
(A) Revocation of license;
(B) Suspension of license; or
(C) Issuance of any formal order requiring the
member insurer to:
(I) Restrict its premium writing;
(II) Obtain additional contributions to
surplus;
(III) Withdraw from the state;
(IV) Reinsure all or any part of its
business; or
(V) Increase capital, surplus or any other
account for the security of policy owners, contract owners,
certificate holders or creditors.
(ii) Report to the board of directors when he has
taken any actions provided by paragraph (i) of this subsection
or has received a report from any other commissioner indicating
that any action provided by paragraph (i) of this subsection 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;
(iii) Report to the board of directors when he has
reasonable cause to believe from any completed or pending
examination of any member company that the company may be an
impaired or insolvent insurer;
(iv) 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 this information in
carrying out its duties and responsibilities under this section.
The report and its information shall be kept confidential by the
board of directors until the commissioner or other lawful
authority makes it a public record.
(b) The commissioner may seek the advice and
recommendations 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 by 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 insurers or health maintenance organizations seeking to do
any business in this state. The reports and recommendations are
confidential and shall not be considered public documents.
(d) It is the duty of the board of directors by majority
vote to notify the commissioner of any information indicating
any member insurer may be an impaired or insolvent insurer.
(e) The board of directors may by majority vote request
that the commissioner order an examination of any member insurer
which the board in good faith believes may be an impaired or
insolvent insurer. Within thirty (30) days of the receipt of a
request, the commissioner shall begin an examination. The
examination may be conducted as a national association of
insurance commissioners examination or may be conducted by
persons designated by the commissioner. The cost of the
examination shall be paid by the association and the examination
report shall be treated the same as other examination reports.
In no event shall the examination report be released to the
board of directors prior to its release to the public, but this
shall not preclude the commissioner from complying with
subsection (a) of this section. The commissioner shall notify
the board of directors when the examination is completed. The
request for an examination shall be kept on file by the
commissioner but it shall not be open to public inspection prior
to the release of the examination report to the public.
(f) The board of directors may by majority vote make
recommendations to the commissioner for the detection and
prevention of member insurer insolvencies.
(g) The board of directors shall at the conclusion of any
insurer insolvency in which the association was obligated to pay
covered claims prepare a report to the commissioner containing
information it has in its possession bearing on the history and
causes of the insolvency. The board shall cooperate with the
boards of directors of guaranty associations in other states in
preparing a report on the history and causes of insolvency of a
particular insurer and may adopt by reference any report
prepared by other associations.