20-688. Duties and powers of the director

317 words·~1 min read·/az/title-20/20-688

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

A. In addition to all other duties and powers enumerated in this article, the director shall:

1. Notify the board of directors of the existence of an impaired insurer or insolvent insurer not later than three days after a determination of impairment or insolvency or the director receives notice of impairment or insolvency.

2. On request of the board of directors, provide the board with a statement of the premiums in the appropriate states for each member insurer.

3. When an impairment is declared and the amount of the impairment is determined, serve a demand on the impaired insurer to make good the impairment within a reasonable time. Notice to the impaired insurer shall constitute notice to its shareholders. The failure of the impaired insurer to promptly comply with such demand shall not excuse the board from the performance of its duties pursuant to this article.

B. The director may suspend or revoke, after notice and a hearing pursuant to title 41, chapter 6, article 10, the certificate of authority to transact business in this state of any member insurer that fails to pay an assessment when due or fails to comply with the plan of operation. As an alternative the director may levy a forfeiture on any member insurer that fails to pay an assessment when due. Such forfeiture shall not exceed five percent of the unpaid assessment per month, but no forfeiture may be less than one hundred dollars per month.

C. Any action of the board of directors may be appealed to the director by any member insurer within thirty days. Except as provided in section 41-1092.08, subsection H, any final action or order of the director is subject to judicial review pursuant to title 12, chapter 7, article 6.

D. The liquidator, rehabilitator or conservator of any impaired insurer or insolvent insurer may notify all interested persons of the effect of this article.