(1) For the purpose of making a determination
of an insurer's financial condition under this regulation, the commissioner
may:
(a) Disregard any credit or amount
receivable resulting from transactions with a reinsurer which is insolvent,
impaired, or otherwise subject to a delinquency proceeding;
(b) Make appropriate adjustments including
disallowance to asset values attributable to investments in or transactions
with parents, subsidiaries, or affiliates consistent with the NAIC
Accounting Policies and Procedures Manual, state laws or
regulations;
(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 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 twelve-month period.
(2) If the commissioner determines
that the continued operation of the insurer authorized to transact business in
this state may be hazardous to its policyholders, creditors or the general
public, then the commissioner may, in conjunction with or in lieu of a notice
required or permitted by
RCW
48.05.150, issue an order requiring the
insurer 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 insurer's capital and surplus;
(e) Suspend or limit the declaration and
payment of dividend by an insurer to its stockholders or to its
policyholders;
(f) File reports in
a form acceptable to the commissioner concerning the market value of an
insurer'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;
(i)
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;
(j) Correct corporate governance practice
deficiencies, and adopt and utilize governance practices acceptable to the
commissioner;
(k) Provide a
business plan to the commissioner in order to continue to transact business in
the state; or
(l) Notwithstanding
any other provision of law limiting the frequency or amount of premium rate
adjustments, adjust rates for any nonlife 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.
(3) Any insurer 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.