26.1-38.1-09. Prevention of insolvencies

26.1-38.1-09. Prevention of insolvencies

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.