20-668. Powers and duties of the director

348 words·~2 min read·/az/title-20/20-668

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The director shall:

1. Report to the board when the director has reasonable cause to believe that any member insurer examined or being examined at the request of the board may be insolvent or in a financial condition hazardous to the policyholders or to the public.

2. Notify the board of the existence of an insolvent insurer not later than three working days after the director receives notice of such insolvency.

3. Upon request of the board, provide the fund with a statement of the net direct written premiums of each member insurer.

4. Immediately make available to the fund for the purpose of making payment upon all covered claims such assets of the insolvent insurer which are not required for payment of any claim accorded a higher priority pursuant to section 20-629.

B. The director may:

1. Require that the fund notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights pursuant to this article. Such notification shall be by mail at their last known address, where available. If sufficient information for notification by mail is not available, notice shall be by publication in a newspaper of general circulation.

2. Suspend or revoke, after notice and hearing, 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 director may assess a civil penalty on any member insurer which fails to pay an assessment when due. The penalty shall not exceed five per cent of the unpaid assessment per month. No penalty shall be less than one hundred dollars per month, which amount shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund.

3. Revoke the designation of any servicing facility if the director finds claims are being handled unsatisfactorily.

C. Any final action or order of the director pursuant to this article shall be subject to review pursuant to chapter 1, article 2 of this title.