§431:19-109 - Grounds and procedures for suspension and revocation of certificate of authority.
§431:19-109 Grounds and procedures for suspension and revocation of certificate of authority. (a) The certificate of authority of a captive insurance company to do business in this State may be suspended or revoked by the commissioner for any of the following reasons:
(1) Insolvency or impairment of capital or surplus;
(2) Failure to meet the requirements of section 431:19-104 or section 431:19-105;
(3) Refusal or failure to submit an annual report, as required by section 431:19-107 or any other report or statement required by law or by lawful order of the commissioner;
(4) Failure to comply with the provisions of its own articles of incorporation, articles of association, or bylaws;
(5) Failure to submit to examination or any legal obligation relative thereto, as required by section 431:19-108;
(6) Refusal or failure to pay the cost of examination as required by section 431:19-108;
(7) Use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or to its policyholders;
(8) Failure to maintain actuarially appropriate loss reserves as determined by the commissioner; provided that the commissioner shall issue at least one warning to the captive insurance company to correct the problem prior to suspending or revoking the certificate of authority; and
(9) Failure otherwise to comply with the laws of this State.
(b) If the commissioner, upon examination, hearing, or other evidence, finds that any captive insurance company has committed any of the acts specified in subsection (a), the commissioner may suspend or revoke the certificate of authority if the commissioner deems it in the best interest of the public and the policyholders of such captive insurance company, notwithstanding any other law. [L 1987, c 347, pt of §2; am L 2003, c 209, §7]