A. The superintendent shall:
(1) notify the association of the existence of an insolvent insurer not later than three days after the superintendent receives notice of the determination of the insolvency;
(2) upon request of the board, provide the association with a statement of the premiums in this or another state of each member insurer; and
(3) when an impairment is declared and the amount of the impairment is determined, serve a demand upon the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer shall constitute notice to its shareholders, if any. The failure of the insurer to promptly comply with the demand shall not excuse the association from the performance of its powers and duties pursuant to the Life and Health Insurance Guaranty Association Act.
B. The superintendent may:
(1) suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of a member insurer that fails to pay an assessment when due or that fails to comply with the plan of operation. As an alternative, the superintendent may levy a fine on a member insurer that fails to pay an assessment when due. The fine shall not exceed five percent of the unpaid assessment a month, except that no fine shall be less than one hundred dollars ($l00) a month; and
(2) revoke the designation of a servicing facility if the superintendent finds that claims are being handled unsatisfactorily.
History: Laws 1984, ch. 127, § 759; 2012, ch. 9, § 13.
The 2012 amendment, effective July 1, 2012, permitted the superintendent to give notice to an impaired insurer requiring the insurer to cure the impairment; eliminated the superintendent's authority to require the association give notice of a determination of insolvency to interested parties; in Subsection A, in Paragraph (2), after "a statement of the", deleted "net direct written" and after "premiums", added "in this or another state", and added Paragraph (3); and in Subsection B, deleted former Paragraph (1), which authorized the superintendent to require the association to notify insureds of an insolvent insurer and other interested parties of the determination of insolvency and their rights by mail or newspaper publication.
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