2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 42 - Kentucky Life and Health Insurance Guaranty Association 42.42-110 Duties and powers of commissioner.
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304.42-110 Duties and powers of commissioner.
In addition to the duties and powers enumerated elsewhere in this subtitle:
(1) The commissioner shall:
(a) Upon request of the board of directors, provide the association with a
statement of the premiums in the appropriate states for each member
insurer;
(b) 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 under this subtitle; and
(c) In any liquidation or rehabilitation proceeding involving a domestic
insurer, be appointed as the liquidator or rehabilitator. If a foreign or alien
member insurer is subject to a liquidation proceeding in its domiciliary
jurisdiction or state of entry, the commissioner may be appointed
conservator.
(2) The commissioner may suspend or revoke, after notice and hearing conducted
in accordance with KRS Chapter 13B, the certificate of authority to transact
insurance in this state of any member insurer which fails to pay an assessment
when due or fails to comply with the plan of operation. As an alternative the
commissioner may levy a forfeiture on any member insurer which fails to pay
an assessment when due. A forfeiture shall not exceed five percent (5%) of the
unpaid assessment per month, but no forfeiture shall be less than one hundred
dollars ($100) per month.
(3) Any final action of the board of directors or the association may be appealed to
the commissioner by any member insurer if the appeal is taken within sixty (60)
days of its receipt of notice of the action being appealed. Any final order of the
commissioner shall be subject to judicial review as set forth in Subtitle 2 of this
chapter and KRS Chapter 13B.
(4) The liquidator, rehabilitator, or conservator of any impaired insurer may notify
all interested persons of the effect of this subtitle.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1565, effective July 15, 2010. -Amended 1998 Ky. Acts ch. 537, sec. 7, effective July 15, 1998. -- Amended
1996 Ky. Acts ch. 318, sec. 248, effective July 15, 1996. -- Amended 1988 Ky.
Acts ch. 282, sec. 5, effective July 15, 1988. -- Created 1978 Ky. Acts ch. 282,
sec. 11, effective June 17, 1978.
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