Conn. Agencies Regs. § 38a-8-104 - Commissioner's authority
(a) For the
purposes of making a determination of an insurer's financial condition under
this regulation, the Commissioner may:
(1)
disregard any credit or amount receivable resulting from transactions with a
reinsurer that is insolvent, impaired or otherwise subject to a delinquency
proceeding;
(2) make appropriate
adjustments including disallowance to asset values attributable to investments
in or transactions with parents, subsidiaries or affiliates, consistent with
the National Association of Insurance Commissioners Accounting Policies and
Procedures Manual, state laws or regulations;
(3) 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;
(4) increase the insurer's
liability in an amount equal to any contingent liability, pledge, or guarantee
not otherwise included if there is a substantial risk that the insurer will be
called upon to meet the obligation undertaken within the next 12-month
period.
(b) If the
Commissioner determines that the continued operation of the insurer licensed to
transact business in this state may be hazardous to its policyholders,
creditors or the general public, then the commissioner may, upon such
determination, issue an order requiring the insurer to:
(1) reduce the total amount of present and
potential liability for policy benefits by reinsurance;
(2) reduce, suspend or limit the volume of
business being accepted or renewed;
(3) reduce general insurance and commission
expenses by specified methods;
(4)
increase the insurer's capital and surplus;
(5) suspend or limit the declaration and
payment of dividend by an insurer to its stockholders or to its
policyholders;
(6) file reports in
a form acceptable to the Commissioner concerning the market value of an
insurer's assets;
(7) limit or
withdraw from certain investments or discontinue certain investment practices
to the extent the Commissioner deems necessary;
(8) document the adequacy of premium rates in
relation to the risks insured;
(9)
file, in addition to regular annual statements, interim financial reports on
the form adopted by the National Association of Insurance Commissioners or in
such format as promulgated by the Commissioner;
(10) correct corporate governance practice
deficiencies, and adopt and utilize governance practices acceptable to the
Commissioner;
(11) provide a
business plan to the Commissioner in order to continue to transact business in
the state;
(12) adjust rates for
any non-life insurance product written by the insurer that the Commissioner
considers necessary to improve the financial condition of the insurer.
If the insurer is a foreign insurer the Commissioner's order may be limited to the extent provided by statute.
(c) An insurer subject to an order
under Subsection (b) may request a hearing to review that order. The notice of
hearing shall be served upon the insurer pursuant to the Rules of Practice of
the Insurance Department. The notice of hearing shall state the time and place
of hearing, and the conduct, condition or ground upon which the Commissioner
based the order. Unless mutually agreed between the Commissioner and the
insurer, the hearing shall occur not less than ten (10) days nor more than
thirty (30) days after notice is served. The Commissioner shall hold all
hearings under this subsection privately, unless the insurer requests a public
hearing, in which case the hearing shall be public.
Notes
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