Louisiana Administrative Code
Title 37 - INSURANCE Part
Part XIII - Regulations
Chapter 13 - Regulation 43-Companies in Hazardous Financial Condition
Section XIII-1307 - Commissioner's Authority
Universal Citation: LA Admin Code XIII-1307
Current through Register Vol. 50, No. 9, September 20, 2024
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 which 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 NAIC Accounting
Practices And Procedures Manual, state laws and 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;
or
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 dividends 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; or
9. file, in addition to regular annual
statements, interim financial reports on the form adopted by the National
Association of Insurance Commissioners or on 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.
notwithstanding any other provision of law limiting the frequency or amount of
premium rate adjustments, 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.
C. If the insurer is a foreign insurer the order issued by the commissioner may be limited to the extent provided by statute.
AUTHORITY NOTE: Promulgated in accordance with R.S. 22:2(H).
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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