376.742. Director, powers and duties.
Director, powers and duties.
376.742. 1. In addition to the duties and powersenumerated elsewhere in sections 376.715 to 376.758, the directorshall:
(1) Upon request of the board of directors, provide theassociation with a statement of the premiums in this and anyother appropriate states for each member insurer;
(2) When an impairment is declared and the amount of theimpairment is determined, serve a demand upon the impairedinsurer to make good the impairment within a reasonable time.Notice to the impaired insurer shall constitute notice to itsshareholders, if any. The failure of the insurer to promptlycomply with such demand shall not excuse the association from theperformance of its powers and duties under the provisions ofsections 376.715 to 376.758;
(3) In any liquidation or rehabilitation proceedinginvolving a domestic insurer, be appointed as the liquidator orrehabilitator.
2. The director may suspend or revoke, after notice andhearing, the certificate of authority to transact insurance inthis state of any member insurer which fails to pay an assessmentwhen due or fails to comply with the plan of operation. As analternative the director may levy a forfeiture on any memberinsurer which fails to pay an assessment when due. Suchforfeiture shall not exceed five percent of the unpaid assessmentper month, but no forfeiture shall be less than one hundreddollars per month.
3. Any action of the board of directors or the associationmay be appealed to the director by any member insurer if suchappeal is taken within sixty days of the action being appealed.If a member company is appealing an assessment, the amountassessed shall be paid to the association and available to meetassociation obligations during the pendency of an appeal. If theappeal on the assessment is upheld, the amount paid in error orexcess shall be returned to the member company. Any final actionor order of the director shall be subject to judicial review in acourt of competent jurisdiction.
4. The liquidator, rehabilitator, or conservator of anyimpaired insurer may notify all interested persons of the effectof sections 376.715 to 376.758.
5. To aid in the detection and prevention of insurerinsolvencies or impairments, the director shall:
(1) Notify the commissioners of all the other states,territories of the United States and the District of Columbiawhen he takes any of the following actions against a memberinsurer:
(a) Revocation of license;
(b) Suspension of license; or
(c) Makes any formal order that such company restricts itspremium writing, obtain additional contributions to surplus,withdraw from the state, reinsure all or any part of itsbusiness, or increase capital, surplus, or any other account forthe security of policyholders or creditors.
Such notice shall be mailed to all commissions within thirty daysfollowing the action taken or the date on which such actionoccurs;
(2) Report to the board of directors when he has taken anyof the actions set forth in subdivision (1) of this subsection orhas received a report from any other commissioner indicating thatany such action has been taken in another state. Such report tothe board of directors shall contain all significant details ofthe action taken or the report received from anothercommissioner;
(3) Report to the board of directors when he has reasonablecause to believe from any examination, whether completed or inprocess, of any member company that such company may be animpaired or insolvent insurer;
(4) Furnish to the board of directors the NAIC InsurerRegulatory Information Service (IRIS) ratios and listings ofcompanies not included in the ratios developed by the NationalAssociation of Insurance Commissioners, and the board may use theinformation contained therein in carrying out its duties andresponsibilities under this section. Such report and theinformation contained therein shall be kept confidential by theboard of directors until such time as made public by the directoror other lawful authority.
6. The director may seek the advice and recommendations ofthe board of directors concerning any matter affecting his dutiesand responsibilities regarding the financial condition of memberinsurers and companies seeking admission to transact insurancebusiness in this state.
(L. 1988 S.B. 430 §§ 23, 24)