2006 Minnesota Statutes

61B.27 PREVENTION OF INSOLVENCIES.
(a) To aid in the detection and prevention of insurer insolvencies or impairments the
commissioner shall notify the commissioners of insurance of all the other states, territories of the
United States, and the District of Columbia when the commissioner takes one of the following
actions against a member insurer:
(i) revocation of license; or
(ii) suspension of license.
The notice must be mailed to all commissioners within 30 days following the action.
(b) If the commissioner deems it appropriate, the commissioner may:
(1) Report to the board of directors when the commissioner has taken any of the actions
specified in paragraph (a) or has received a report from another commissioner indicating that
an action specified in paragraph (a) has been taken in another state. The report to the board
of directors must contain all significant details of the action taken or the report received from
another commissioner.
(2) Report to the board of directors when the commissioner has reasonable cause to believe
from an examination, whether completed or in process, of a member company that the company
may be an impaired or insolvent insurer.
(3) Furnish to the board of directors the National Association of Insurance Commissioners
insurance regulatory information system ratios and listings of companies not included in the
ratios developed by the National Association of Insurance Commissioners, and the board may
use the information in carrying out its duties and responsibilities under this section. The report
and the information contained in it must be kept confidential by the board of directors until it
has been made public by the commissioner or other lawful authority. Nothing in this provision
supersedes other requirements of law.
(4) Notify the board if the commissioner makes a formal order requiring the company to
restrict its premium writing, obtain additional contributions to surplus, withdraw from this state,
reinsure all or any part of its business, or increase capital, surplus, or any other account for the
security of policyholders or creditors.
(c) The commissioner may seek the advice and recommendations of the board of directors
concerning any matter affecting the commissioner's duties and responsibilities regarding the
financial condition of member insurers and of companies seeking admission to transact insurance
business in this state.
(d) The board of directors may, upon majority vote, make reports and recommendations to the
commissioner upon matters germane to the solvency, liquidation, rehabilitation, or conservation of
any member insurer or germane to the solvency of a company seeking to do an insurance business
in this state. Those reports and recommendations shall not be considered public documents.
(e) The board of directors, upon majority vote, may notify the commissioner of information
indicating that a member insurer may be an impaired or insolvent insurer.
(f) The board of directors may, upon majority vote, make recommendations to the
commissioner for the detection and prevention of insurer insolvencies.
(g) The board of directors may, at the conclusion of an insurer insolvency in which the
association was obligated to pay covered claims, prepare a report to the commissioner containing
the information it may have in its possession bearing on the history and causes of the insolvency.
The board shall cooperate with the boards of directors of guaranty associations in other states in
preparing a report on the history and causes of insolvency of a particular insurer, and may adopt
by reference any report prepared by those other associations.
(h) Nonperformance by the commissioner of any of the acts specified in this section or
failure to meet the specified time limits does not affect the association, its members, or any other
person as to the person's duties and obligations.
Nothing in this section supersedes other requirements of law.
History: 1993 c 319 s 12; 2001 c 142 s 31