Washington Code 48.36A.284 – Determination of financial condition — Hazardous to certificate holders — Commissioner’s order — Hearing
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(1) For the purpose of making a determination of a society‘s financial condition, the commissioner may:
Terms Used In Washington Code 48.36A.284
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Certificate: means the document issued as written evidence of the benefit contract. See Washington Code 48.36A.040
- 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.
- Society: means fraternal benefit society, unless otherwise indicated. See Washington Code 48.36A.040
(a) Disregard any credit or amount receivable resulting from transactions with a reinsurer that is insolvent, impaired, or otherwise subject to a delinquency proceeding;
(b) Make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;
(c) Refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor; or
(d) Increase the society’s liability in an amount equal to any contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the society will be called upon to meet the obligation undertaken within the next twelve-month period.
(2) If the commissioner determines that the continued operation of the society authorized to transact business in this state may be hazardous to the certificate holders, then the commissioner may, in conjunction with or in lieu of a notice required or permitted by RCW 48.36A.272, issue an order requiring the society to:
(a) Reduce the total amount of present and potential liability for policy benefits by reinsurance;
(b) Reduce, suspend, or limit the volume of business being accepted or renewed;
(c) Reduce general insurance and commission expenses by specified methods;
(d) Increase the society’s surplus;
(e) Suspend or limit the declaration and payment of refunds by a society to its members;
(f) File reports in a form acceptable to the commissioner concerning the market value of a society’s assets;
(g) Limit or withdraw from certain investments or discontinue certain investment practices to the extent the commissioner deems necessary;
(h) Document the adequacy of premium rates in relation to the risks insured; or
(i) File, in addition to regular annual statements, interim financial reports on the form adopted by the national association of insurance commissioners or on a format promulgated by the commissioner.
(3) Any society subject to an order under subsection (2) of this section may make a written demand for a hearing, subject to the requirements of RCW 48.04.010, by specifying in what respects it is aggrieved and the grounds to be relied upon as basis for the relief to be demanded at the hearing.
[ 1996 c 236 § 9.]