§386-208 Guaranty mechanism.
174 words·~1 min read·
/hi/chapter-386/386-208A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§386-208 Guaranty mechanism. In the event of a liquidation pursuant to section 386-207, after exhausting the security required pursuant to section 386-194(b)(2), the insurance commissioner shall levy an assessment against all groups to assure prompt payment of benefits. The assessment on each group shall be based on the proportion that the premium of each group bears to the total premium of all groups. The insurance commissioner may exempt a group from assessment upon finding that the payment of the assessment would render the group insolvent.
The assessment shall not relieve any member of an insolvent group of its joint and several liability. After any assessment is made, the insurance commissioner shall take action to enforce the joint and several liability provisions of the insolvent group's indemnity agreement and shall recoup:
(1)All costs incurred by the insurance commissioner in enforcing the joint and several liability;
(2)Amounts that the insurance commissioner assessed any other groups pursuant to this section; and
(3)Any obligation included within section 386-207(f). [L 1986, c 304, pt of §1]