2009 Kentucky Revised Statutes Subtitle 42. Kentucky Life and Health Insurance Guaranty Association 304.42.120 Detection and prevention of insurer insolvencies or impairments.
304.42-120 Detection and prevention of insurer insolvencies or impairments.
To aid in the detection and prevention of insurer insolvencies or impairments: <br>(1) It shall be the duty of the commissioner:
(a) To notify the commissioners of all of the other states, territories of the United
States and the District of Columbia when he or she takes any of the following <br>actions against a member insurer: <br>1.
Revocation of license;
2.
Suspension of license;
3.
Makes any formal order that such company restrict its premium writing, <br>obtain additional contributions to surplus, withdraw from the state, <br>reinsure all or any part of its business, or increase capital, surplus, or any <br>other account for the security of policy owners or creditors.
Such notice shall be mailed to all commissioners within thirty (30) days <br>following the action taken or the date on which such action occurs;
(b) To report to the board of directors when he or she has taken any of the actions
set forth in paragraph (a) of this subsection or has received a report from any <br>other commissioner indicating that any such action has been taken in another <br>state. Such report to the board of directors shall contain all significant details <br>of the action taken or the report received from another commissioner;
(c) To report to the board of directors when he or she has reasonable cause to
believe from any examination, whether completed or in process, of any <br>member insurer that such insurer may be an impaired or insolvent insurer; and
(d) To furnish to the board of directors the NAIC insurance regulatory
information system information developed by the National Association of <br>Insurance Commissioners, and the board may use the information contained <br>therein in carrying out its duties and responsibilities under this section. Such <br>report and the information contained therein shall be kept confidential by the <br>board of directors until such time as made public by the commissioner or <br>other lawful authority.
(2) The commissioner may seek the advice and recommendations of the board of
directors concerning any matter affecting his or her duties and responsibilities <br>regarding the financial condition of member companies and companies seeking <br>admission to transact insurance business in this state.
(3) The board of directors may, upon majority vote, make reports and recommendations
to the commissioner upon any matter germane to the solvency, liquidation, <br>rehabilitation or conservation of any member insurer or germane to the solvency of <br>any company seeking to do an insurance business in this state. Such reports and <br>recommendations shall not be considered public documents.
(4) The board of directors may, upon majority vote, notify the commissioner of any
information indicating any member insurer may be an impaired or insolvent insurer.
(5) The board of directors may, upon majority vote, make recommendations to the
commissioner for the detection and prevention of insurer insolvencies.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 1566, effective July 15, 2010. --
Amended 1998 Ky. Acts ch. 537, sec. 8, effective July 15, 1998. -- Amended 1988 <br>Ky. Acts ch. 282, sec. 6, effective July 15, 1988. -- Created 1978 Ky. Acts ch. 282, <br>sec. 12, effective June 17, 1978.
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