2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 42 - Kentucky Life and Health Insurance Guaranty Association 42.42-120 Detection and prevention of insurer insolvencies or impairments.
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304.42-120 Detection and prevention of insurer insolvencies or impairments.
To aid in the detection and prevention of insurer insolvencies or impairments:
(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 actions against a member insurer:
1.
Revocation of license;
2.
Suspension of license;
3.
Makes any formal order that such company restrict its premium
writing, obtain additional contributions to surplus, withdraw from the
state, reinsure all or any part of its business, or increase capital,
surplus, or any other account for the security of policy owners or
creditors.
Such notice shall be mailed to all commissioners within thirty (30) days
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 other commissioner indicating that any such action has
been taken in another state. Such report to the board of directors shall
contain all significant details 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
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
Insurance Commissioners, and the board may use the information
contained therein in carrying out its duties and responsibilities under this
section. Such report and the information contained therein shall be kept
confidential by the board of directors until such time as made public by
the commissioner or 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
regarding the financial condition of member companies and companies seeking
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, rehabilitation or conservation of any member insurer or
germane to the solvency of any company seeking to do an insurance business
in this state. Such reports and 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
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 Ky. Acts ch. 282, sec. 6, effective July 15, 1988. -- Created 1978 Ky. Acts
ch. 282, sec. 12, effective June 17, 1978.
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