Iowa Administrative Code › Agency 191 - Insurance Division › Regulated Industries › Chapter 110 - Standards and Commissioner's Authority for Companies Deemed to Be in Hazardous Financial Condition › Rule 191-110.5 - Commissioner's Authority

Current through Register Vol. 47, No. 3, July 24, 2024
For the purposes of making a determination of an insurer's
				  financial condition under this chapter, the commissioner may:
a. Disregard any credit or amount receivable
				resulting from transactions with a reinsurer that is insolvent, impaired, or
				otherwise subject to a delinquency proceeding;
b. Make appropriate adjustments including
				disallowance to asset values attributable to investments in or transactions
				with parents, subsidiaries, or affiliates consistent with the NAIC Accounting
				Policies and Procedures Manual, state laws, and regulations;
c. 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;
d. Increase the insurer's
				liability in an amount equal to any contingent liability, pledge, or guaranty
				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.
If the commissioner determines that the continued operation
				  of the insurer licensed to transact business in Iowa may be hazardous to its
				  policyholders, creditors, or the general public, then the commissioner may,
				  upon a determination, issue an order requiring the insurer to:
a. Reduce the total amount of present and
				potential liability for policy benefits by reinsurance;
b. Reduce, suspend, or limit the volume of
				business being accepted or renewed;
c. Reduce general insurance and commission
				expenses by specified methods;
d.
				Increase the insurer's capital and surplus;
e. Suspend or limit the declaration and
				payment of a dividend by the insurer to its stockholders or to its
				policyholders;
f. File reports in a
				form acceptable to the commissioner concerning the market value of the
				insurer's assets;
g. Limit or
				withdraw from certain investments or discontinue certain investment practices
				to the extent the commissioner deems necessary;
h. Document the adequacy of premium rates in
				relation to the risks insured;
i.
				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 commissioner;
j. Correct corporate governance practice
				deficiencies, and adopt and utilize governance practices acceptable to the
				commissioner;
k. Provide a business
				plan to the commissioner in order to continue to transact business in the
				state;
l. 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
If the insurer is a foreign insurer, the commissioner's
				  order may be limited to the extent provided by statute.
An insurer subject to an order under subrule 110.5(2) may
				  request a hearing to review that order The notice of hearing shall be served
				  upon the insurer pursuant to
				  191-312.
				  (I7A). The notice of hearing shall state the time and place of hearing and the
				  conduct, condition or ground upon which the commissioner based the order Unless
				  mutually agreed between the commissioner and the insurer, the hearing shall
				  occur not less than 10 days nor more than 30 days after notice is served and
				  shall be in Polk County, Iowa. The commissioner shall hold all hearings under
				  this subrule privately, unless the insurer requests a public hearing, in which
				  case the hearing shall be public.