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§ 9-412. Detection and prevention of insurer impairments

West's Annotated Code of MarylandInsuranceEffective: October 1, 2020

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 9. Impaired Entities
Subtitle 4. Life and Health Insurance Guaranty Corporation Act (Refs & Annos)
Effective: October 1, 2020
MD Code, Insurance, § 9-412
§ 9-412. Detection and prevention of insurer impairments
Currentness
Powers and duties of Commissioner and Board of Directors
(a)(1) The Commissioner and Board of Directors have the powers and duties described in this section to help in the detection and prevention of member insurer impairments or insolvencies.
(2) The Corporation may help the Commissioner in detecting and preventing member insurer impairments or insolvencies as provided in this section.
Examination of member insurer
(b)(1) The Commissioner shall examine a member insurer if the Commissioner has reasonable cause to believe that the member insurer may be unable or potentially unable to fulfill its contractual obligations.
(2) On a majority vote, the Board of Directors shall notify the Commissioner of any information that indicates that a member insurer may be unable or potentially unable to fulfill its contractual obligations.
Nature of examination
(c)(1) On a majority vote, the Board of Directors may request that the Commissioner order an examination of a member insurer that the Board in good faith believes may be unable or potentially unable to fulfill its contractual obligations.
(2) The Commissioner may conduct the examination.
(3) The examination may be conducted as a National Association of Insurance Commissioners examination or may be conducted by a person that the Commissioner designates.
(4) The cost of an examination shall be paid by the Corporation.
(5) The examination report shall be treated as are other examination reports.
(6) An examination report may not be released to the Board of Directors before its release to the public, but this does not excuse the Commissioner from the duty to comply with subsection (d) of this section.
(7) The Commissioner shall notify the Board of Directors when the examination is completed.
(8)(i) The request for an examination shall be kept on file by the Commissioner.
(ii) A request for examination may not be open to public inspection before the release of the examination report to the public, and shall be released at that time only if the examination discloses that the examined member insurer is unable or potentially unable to meet its contractual obligations.
Reporting to Board of Directors
(d) The Commissioner shall report to the Board of Directors when the Commissioner has reasonable cause to believe that a member insurer, examined at the request of the Board of Directors, may be unable or potentially unable to fulfill its contractual obligations.
Reports and recommendations to Commissioner
(e)(1) On a majority vote, the Board of Directors may make reports and recommendations to the Commissioner on any matter germane to the solvency, liquidation, rehabilitation, or conservation of a member insurer.
(2) A report or recommendation made under this subsection is not a public document.
Recommendations to Commissioner
(f) On a majority vote, the Board of Directors may make recommendations to the Commissioner for the detection and prevention of member insurer impairments or insolvencies.
Conclusion of member insurer impairment or insolvency
(g) At the conclusion of a member insurer impairment or insolvency in which the Corporation carried out its duties or exercised its powers under this subtitle, the Board of Directors shall prepare and submit to the Commissioner a report on the history and causes of the impairment or insolvency, based on the information available to the Corporation.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 2020, c. 73, § 1, eff. Oct. 1, 2020; Acts 2020, c. 74, § 1, eff. Oct. 1, 2020.
Formerly Art. 48A, §§ 521, 531.
MD Code, Insurance, § 9-412, MD INSURANCE § 9-412
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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