Louisiana Revised Statutes 22:2091 – Prevention of insolvencies
Terms Used In Louisiana Revised Statutes 22:2091
- Account: means any of the four accounts created by Louisiana Revised Statutes 22:2084
- Association: means the Louisiana Life and Health Insurance Guaranty Association created by Louisiana Revised Statutes 22:2084
- Commissioner: means the commissioner of insurance. See Louisiana Revised Statutes 22:2084
- Contract: A legal written agreement that becomes binding when signed.
- Germane: On the subject of the pending bill or other business; a strict standard of relevance.
- Insolvent insurer: means a member insurer which is placed under an order by a court of competent jurisdiction with a finding of insolvency. See Louisiana Revised Statutes 22:2084
- Member insurer: means any insurer or health maintenance organization licensed or which holds a certificate of authority to transact in this state any kind of insurance or health maintenance organization business for which coverage is provided by Louisiana Revised Statutes 22:2084
A. To aid in the detection and prevention of member insurer insolvencies or impairments, it shall be the duty of the commissioner:
(1)(a) To notify the commissioner of insurance, or other appropriate official, of all the other states, territories of the United States, and the District of Columbia when he takes any of the following actions against a member insurer:
(i) Revokes any license.
(ii) Suspends any license.
(iii) Makes any formal order that the member insurer restrict its premium writing, obtain additional contributions to surplus, withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the security of policyholders, contract owners, certificate holders, or creditors.
(b) The notice shall be mailed to all such commissioners or other appropriate officials within thirty days following the action taken or the date on which such action occurs.
(2) To report to the board of directors when he has taken any of the actions set forth in Paragraph (1) of this Subsection or has received a report from any other commissioner indicating that any such action has been taken in another state. Such report to the board of directors shall contain all significant details of the action taken or the report received from another commissioner or other appropriate official.
(3) To report to the board of directors when he has reasonable cause to believe from any examination, whether completed or in process, of a member insurer that the member insurer may be an impaired or insolvent insurer.
(4) To furnish to the board of directors of the National Association of Insurance Commissioners (NAIC), Insurance Regulatory Information System (IRIS), ratios and listings of companies not included in the ratios developed by the National Association of Insurance Commissioners. The board may then use the information contained therein in carrying out its duties and responsibilities. The report and the information contained therein shall be kept confidential by the board of directors.
B. The commissioner may seek the advice and recommendation of the board of directors concerning any matter affecting his duties and responsibilities regarding the financial condition of member insurers and insurers or health maintenance organizations seeking admission to transact business in this state.
C. The board of directors may, upon majority vote, make reports and recommendations to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane to the solvency of any insurer or health maintenance organization seeking to transact business in this state. The reports and recommendations shall not be considered public records.
D. It shall be the duty of the board of directors, upon majority vote, to notify the commissioner of any information indicating any member insurer may be an impaired or insolvent insurer.
E. Repealed by Acts 2018, No. 97, §2.
F. The board of directors may, upon majority vote, make recommendations to the commissioner for the detection and prevention of insurer insolvencies.
G. Repealed by Acts 2018, No. 97, §2.
Acts 1991, No. 998, §1, eff. Sept. 30, 1991; Redesignated from La. Rev. Stat. 22:1395.11 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2012, No. 271, §1; Acts 2018, No. 97, §§1, 2.