Mississippi Administrative Code › Title 19 - Department of Insurance › Part 5 - Non-Auto Property and Casualty Insurance › Chapter 4 - (2007-2) Mississippi worker's compensation assigned risk plan and the Mississippi workers' compensation assigned risk pool › Rule 19-5-4.08 - Governing Articles: Article II › Section 19-5-4.08.5 - Insolvency

Current through June 25, 2024
A. A Member's participation in the Pool shall
				  be deemed terminated in the event a Member becomes insolvent. As used herein,
				  "insolvent" means being the subject of receivership, conservatorship,
				  rehabilitation, liquidation, or similar proceedings, whether voluntary or
				  involuntary, in any jurisdiction.
B. If, at the time of a Member's insolvency,
				  the insolvent Member's account in the Pool reflects a net balance due to the
				  Pool and the liquidator or receiver of the insolvent Member does not have
				  sufficient funds available to make a final adjustment of the account, the
				  insolvent Member's share of undistributed surpluses and/or uncollected deficits
				  for each policy year for which the insolvent Member was a participant in the
				  Pool shall be reallocated to the remaining Members as if the insolvent Member
				  had not been a participant in the Pool for such policy years.
C. In the event a Servicing Carrier becomes
				  insolvent, the Pool Administrator shall have the option to:
1. pay to the receiver, conservator,
				  rehabilitator, liquidator or other appropriate representative of the insolvent
				  Servicing Carrier the losses and expenses for which the Pool is liable under
				  the Reinsurance Agreement(s); or:
2. subject to the approval of the receiver,
				  conservator, rehabilitator, liquidator or other representative, and subject to
				  the approval of any court having jurisdiction over the proceedings, assume the
				  policy obligations of the insolvent Servicing Carrier for policies written
				  pursuant to the Plan and reinsured by the Pool.
If the latter option is exercised, the Pool Administrator
					 shall make arrangements to have all policies that have been assigned to and are
					 being serviced by the insolvent Servicing Carrier reassigned to another
					 Servicing Carrier for servicing. The successor Servicing Carrier shall assume
					 all the duties and obligations of the insolvent Servicing Carrier and shall be
					 entitled to the reinsurance provided by the Pool. Payment made on account of
					 such policies, including expenses for the servicing thereof, shall be
					 reimbursed by the Pool and apportioned to the policy years for which such
					 policies were originally issued.
3. All amounts due to an insolvent Servicing
				  Carrier from the Pool as a result of the reinsurance provided to such Servicing
				  Carrier and all amounts due from an insolvent Servicing Carrier as a member
				  shall be merged into one account and deemed mutual debits and credits which the
				  Pool may offset.
4. The Pool shall
				  have all the rights allowed by law against the estate or funds of an insolvent
				  Member for recovery of amounts which have been absorbed by the other. Members
				  of the Pool as herein provided. The Pool Administrator may assert and enforce
				  such rights on behalf of the Pool.
5. Anything in this Article to the contrary
				  notwithstanding, the Commissioner may, in the event such action is in his
				  judgment feasible and desirable, and in a manner equitable to all Members,
				  elect not to terminate the participation of an insolvent Member and permit such
				  Member to continue its participation in the Pool upon such conditions as he may
				  prescribe and subject in all respects to these Articles and the rules and
				  procedures applicable to the Pool and the Plan.