Nebraska Statutes 44-2711. Detection and prevention of insurer impairments or insolvencies; powers and duties of board and director
To aid in the detection and prevention of insurer impairments or insolvencies:
Terms Used In Nebraska Statutes 44-2711
- Director: shall mean the Director of Insurance. See Nebraska Statutes 44-103
- Germane: On the subject of the pending bill or other business; a strict standard of relevance.
- Insurer: shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(1) The board of directors shall, upon majority vote, notify the director of any information indicating any member insurer may be unable or potentially unable to fulfill its contractual obligations;
(2) The board of directors may, upon majority vote, request that the director order an examination of any member insurer which the board in good faith believes may be unable or potentially unable to fulfill its contractual obligations. The director may conduct such examination. The examination may be conducted as a National Association of Insurance Commissioners examination or may be conducted by such persons as the director may designate. The cost of such examination shall be paid by the association and the examination report shall be treated as are other examination reports. In no event shall such examination report be released to the board of directors of the association prior to its release to the public, but this shall not excuse the director from his or her obligation to comply with subdivision (3) of this section. The director shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the director, but it shall not be open to public inspection prior to the release of the examination report to the public and shall be released at that time only if the examination discloses that the examined insurer is unable or potentially unable to meet its contractual obligations;
(3) The director shall report to the board of directors when he or she has reasonable cause to believe that any member insurer examined at the request of the board of directors may be unable or potentially unable to fulfill its contractual obligations;
(4) The board of directors may, upon majority vote, make reports and recommendations to the director upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer. Such reports and recommendations shall not be considered public documents;
(5) The board of directors may, upon majority vote, make recommendations to the director for the detection and prevention of insurer impairments or insolvencies; and
(6) The board of directors shall, at the conclusion of any insurer impairment or insolvency in which the association carried out its duties under the Nebraska Life and Health Insurance Guaranty Association Act or exercised any of its powers under such act, prepare a report on the history and causes of such impairment or insolvency based on the information available to the association and submit such report to the director.