Current as of: 2010
(a) (1) The Commissioner:
(i) shall notify the Board of Directors of the existence of an impaired insurer not later than 3 days after a determination of impairment is made or the Commissioner receives notice of impairment;
(ii) on request of the Board of Directors, shall provide the Corporation with a statement of the premiums in the appropriate states for each member insurer;
(iii) when an impairment is declared and the amount of the impairment is determined, shall serve a demand on the impaired insurer to make good the impairment within a reasonable time; and
(iv) shall be appointed as:
1. the liquidator or rehabilitator in a liquidation or rehabilitation proceeding involving a domestic insurer; or
2. the conservator or ancillary receiver in a liquidation proceeding involving a member insurer that is a foreign insurer in its domiciliary jurisdiction or an alien insurer in its state of entry.
(2) (i) Notice to the impaired insurer under paragraph (1) (iii) of this subsection is deemed notice to its shareholders.
(ii) Failure of the insurer to comply promptly with a demand to make good the impairment does not excuse the Corporation from the performance of its duties and powers under this subtitle.
(b) (1) The Commissioner:
(i) after notice and hearing, may suspend or revoke the certificate of authority of a member insurer that fails to pay an assessment when due or fails to comply with the plan of operation; or
(ii) on behalf of the Corporation, may impose a penalty on a member insurer that fails to pay an assessment when due.
(2) A penalty imposed under paragraph (1)(ii) of this subsection may not exceed 5% of the unpaid assessment per month and may not be less than $100 per month.
(c) (1) Within 30 days after an action of the Board of Directors or Corporation, a member insurer may appeal the action to the Commissioner.
(2) A final action or order of the Commissioner under this subtitle is subject to judicial review.
(d) The liquidator, rehabilitator, or conservator of an impaired insurer may notify all interested persons of the effect of this subtitle.Prev
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U.S. Code Provisions: Insurance
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