Current through Reg. 50, No. 187; September 24, 2024
(1) The plan
referred to in section
624.81(4),
F.S., shall where applicable include the actions specified in subsection (2),
below.
(2) The Office shall if
applicable, and upon consent of the supervised insurer:
(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 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;
(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;
(e) Reduce the total amount of an insurer's
present and potential liability for policy benefits by reinsurance;
(f) Reduce, suspend or limit an insurer's
volume of business being accepted or renewed;
(g) Reduce an insurer's general insurance and
commission expenses by specified methods;
(h) Increase an insurer's capital and
surplus;
(i) Suspend or limit the
declaration and payment of dividends by an insurer to its stockholders or to
its policyholders;
(j) Require an
insurer to file reports clearly and accurately reflecting the market value of
the insurer's assets;
(k) Require
an insurer to limit or withdraw from certain investments or to discontinue
certain investment practices;
(l)
Require an insurer to document the adequacy of premium rates in relation to the
risks insured;
(m) Require an
insurer to file, in addition to regular annual statements, interim financial
reports;
(n) Impose restricted
activities pursuant to section
624.83, F.S.; or
(o) Appoint a deputy supervisor to oversee
and monitor the operations of the insurer.
(3) The requirements of a corrective plan
will vary depending upon the specific circumstances surrounding the troubled
situation. Some of the elements necessary for a corrective plan include but are
not limited to the following:
(a) An executive
summary identifying the objectives to be attained in the plan, with key
implementation dates and a projected date for full statutory
compliance;
(b) Background and
description of the company, describing the insurer's history, ownership
structure, relationships with affiliates, management structure, key employees,
and overall operating structure of the organization;
(c) The financial condition of the insurer,
summarizing major categories of revenues and expenses, assets and liabilities,
and debt and capital structure for the past two years based on actual results,
and for the next three years based on forecasted results;
(d) The causes of the unsound or hazardous
conditions giving rise to supervision proceedings;
(e) Corrective action required, identifying
operational changes, contractual changes, management changes, and changes in
internal control systems;
(f)
Specific business plans by function, including current marketing plans, company
operations such as claims processing, projected monthly financial forecasts for
at least a two-year period and quarterly financial forecasts thereafter;
and,
(g) Monitoring and reporting
systems providing a periodic review of progress and comparisons of actual
results with the corrective plan objectives.
(4) Any reports submitted to the Office
pursuant to any approved corrective plan shall be electronically filed at
http://www.floir.com/iportal unless otherwise indicated through a consent
order. All other reports required by statute or rule shall be submitted in the
manner required by such statute or rule, regardless of whether the insurer is
in administrative supervision.
(5)
Any notice, request, or other communication received by an insurer while in
administrative supervision from any person acting for the Office, but not
responsible for the administrative supervision, shall be reported to the person
in the office responsible for the administrative supervision by the insurer
within five (5) days of receipt.
Rulemaking Authority 624.308 FS. Law Implemented
624.307(1), 624.424, 624.610, 624.80, 624.81, 625.012, 625.172, 625.302,
625.330, 625.332, 625.338 FS.
New 1-30-91, Formerly 4-93.003, Amended 5-5-92, Formerly
4-141.003, Amended 7-30-17.
