§ 27-34.3-12 - Prevention of insolvencies. - Rhode Island Statutes

SECTION 27-34.3-12

   § 27-34.3-12  Prevention of insolvencies.– To aid in the detection and prevention of insurer insolvencies or impairments:

   (a) It shall be the duty of the commissioner:

   (1) To notify the commissioners of all the other states,territories of the United States and the District of Columbia within thirty(30) days following the action taken or the date the action occurs, when thecommissioner takes any of the following actions against a member insurer:

   (i) Revocation of license;

   (ii) Suspension of license; or

   (iii) Makes a formal order that the company restrict itspremium writing, obtain additional contributions to surplus, withdraw from thestate, reinsure all or any part of its business, or increase capital, surplus,or any other account for the security of policy owners or creditors.

   (2) To report to the board of directors when the commissionerhas taken any of the actions set forth in paragraph (1) of this subdivision orhas received a report from any other commissioner indicating that this actionhas been taken in another state. The report to the board of directors shallcontain all significant details of the action taken or the report received fromanother commissioner.

   (3) To report to the board of directors when the commissionerhas reasonable cause to believe from any examination, whether completed or inprocess, of any member company that the company may be an impaired or insolventinsurer.

   (4) To furnish to the board of directors the NAIC insuranceregulatory information system (IRIS) ratios and listings of companies notincluded in the ratios developed by the national association of insurancecommissioners, and the board may use the information contained in the ratiosand listings in carrying out its duties and responsibilities under thissection. The report and the information contained in it shall be keptconfidential by the board of directors until the time it is made public by thecommissioner or other lawful authority.

   (b) The commissioner may seek the advice and recommendationsof the board of directors concerning any matter affecting the duties andresponsibilities of the commissioner regarding the financial condition ofmember insurers and companies seeking admission to transact insurance businessin this state.

   (c) The board of directors may, upon majority vote, makereports and recommendations to the commissioner upon any matter germane to thesolvency, liquidation, rehabilitation or conservation of any member insurer orgermane to the solvency of any company seeking to do an insurance business inthis state. The reports and recommendations shall not be considered publicdocuments.

   (d) The board of directors may, upon majority vote, notifythe commissioner of any information indicating a member insurer may be animpaired or insolvent insurer.

   (e) The board of directors may, upon majority vote, makerecommendations to the commissioner for the detection and prevention of insurerinsolvencies.