005.01 For the
purposes of making a determination of an insurer's financial condition under
this rule, the Director may:
005.01A
Disregard any credit or amount receivable resulting from transactions with a
reinsurer that is insolvent, impaired or otherwise subject to a delinquency
proceeding;
005.01B 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 rules;
005.01C 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
005.01D 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.
005.02 If the Director 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 Director may, upon a determination, take such action as is
authorized by the Insurers Supervision, Rehabilitation and Liquidation Act,
NEB. REV. STAT. §
44-4801, ET SEQ.
In addition to taking any action authorized by §
44-4801
ET SEQ. and §
44-134,
the Director may issue an order requiring such insurer to:
005.02A Reduce the total amount of present
and potential liability for policy benefits by reinsurance;
005.02B Reduce, suspend or limit the volume
of business being accepted or renewed;
005.02C Reduce general insurance and
commission expenses by specific methods;
005.02D Increase the insurer's capital and
surplus;
005.02E Suspend or limit
the declaration and payment of dividend by an insurer to its stockholders or to
its policyholders;
005.02F File
reports in a form acceptable to the Director concerning the market value of an
insurer's assets;
005.02G Limit or
withdraw from certain investments or discontinue certain investment practices
to the extent the Director deems necessary;
005.02H Document the adequacy of premium
rates in relation to the risks insured;
005.02I 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
Director;
005.02J Correct corporate
governance practice deficiencies, and adopt and utilize governance practices
acceptable to the Director;
005.02K
Provide a business plan to the Director in order to continue to transact
business in the state;
005.02L
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 Director considers necessary to improve the
financial condition of the insurer.
If the insurer is a foreign insurer the Director's order may
be limited to the extent provided by statute.
