2023 New York Laws › ISC - Insurance › Article 77 - The Life and Health Insurance Company Guaranty Corporation of New York Act › 7711 - Powers of the Superintendent and the Board of Directors.

§  7711.  Powers  of the superintendent and the board of directors. In
addition to the duties and powers enumerated elsewhere in this chapter:
(a) The  superintendent  may  suspend  or  revoke,  after  notice  and
hearing,  the  certificate  of  authority  to transact insurance in this
state of any member insurer which fails to pay an assessment when due or
fails to comply with the  plan  of  operation.  As  an  alternative  the
superintendent  may  levy  a  penalty  to  be paid to the people of this
state, after notice and hearing, on any member insurer  which  fails  to
pay  an  assessment when due. Such penalty shall not exceed five percent
of the unpaid assessment per month, but no penalty shall  be  less  than
one hundred dollars per month.
(b)  Any  action  of  the board of directors or the corporation may be
appealed to the superintendent by any member insurer if such  appeal  is
taken  within thirty days of the action being appealed. Any final action
or order of the superintendent shall be subject to judicial review in  a
court of competent jurisdiction.
(c)  Upon  the  request  of the superintendent, the board of directors
shall render advice  and  make  recommendations  to  the  superintendent
concerning   any   matter  affecting  his  duties  and  responsibilities
regarding the financial condition  of  member  companies  and  companies
seeking admission to transact insurance business in this state.
(d)  The  board  of  directors  shall  establish  a panel of advisors,
consisting of representatives of at least thirteen member  insurers  not
serving  on  the  board  of  directors, knowledgeable as to the life and
health insurance business to provide  it  with  information  tending  to
indicate  that any member insurer or company seeking to do any insurance
business in this state is or may be in danger of becoming an impaired or
insolvent insurer; persons serving on the panel  of  advisors  shall  be
deemed  agents of the corporation for purposes of section seven thousand
seven hundred sixteen of this article. The board of directors may,  upon
majority  vote,  make  reports and recommendations to the superintendent
upon any matter germane to the solvency, liquidation, rehabilitation  or
conservation  of  any  member  insurer or germane to the solvency of any
company seeking to do an insurance business in this state. Such  reports
and recommendations shall not be considered public documents. Nothing in
this  article  shall  be  deemed to limit the ability of a member of the
panel of advisors or any other person from reporting information germane
to the solvency of  a  member  insurer  or  company  seeking  to  do  an
insurance  business  in this state to the superintendent or other lawful
authority or the corporation.
(e) It shall be the duty of the  board  of  directors,  upon  majority
vote,  to  notify  the  superintendent of any information indicating any
member insurer may be an impaired or insolvent insurer.
(f)  The  board  of  directors   may,   upon   majority   vote,   make
recommendations  to  the superintendent for the detection and prevention
of insolvencies.
(g) The board of directors shall, at the  conclusion  of  any  insurer
insolvency in which the corporation was obligated to pay covered claims,
prepare a report to the superintendent containing such information as it
may  have  in  its  possession bearing on the history and causes of such
insolvency. The corporation shall cooperate with the boards of directors
of guaranty associations or corporations in other states in preparing  a
report on the history and causes for insolvency of a particular insurer,
and   may   adopt  by  reference  any  report  prepared  by  such  other
associations or corporations.