State Codes and Statutes

Statutes > New-jersey > Title-17 > Section-17-30a > 17-30a-13

17:30A-13.  Examination of insurers possibly in financial condition hazardous to public;  reports and recommendations on insolvency of insurers
    a.  The commissioner shall examine any member insurer who the commissioner has reasonable cause to believe may be insolvent or in a financial condition hazardous to the policyholders or to the public.  It shall be the duty of the board of directors, upon majority vote, to notify the commissioner of any information indicating any member insurer may be insolvent or in financial condition hazardous to the policyholders or the public;

    b.  The board of directors may, upon majority vote, request that the commissioner order an examination of any member insurer which the board in good  faith believes may be in a financial condition hazardous to the policyholders  or to the public.  The commissioner shall begin such examination within a  reasonable time after receipt of such request.  Any examination may be  conducted as a National Association of Insurance Commissioners examination or  may be conducted by such persons as the commissioner designates.  The cost of  any examination shall be paid by the association and the examination report  shall be treated as are other examination reports.  In no event shall such  examination report be released to the board of directors prior to its becoming  a public record, but this shall not preclude the commissioner from complying  with subsection c. of this section.  The commissioner shall notify the board of  directors when the examination is completed.  The request for an examination  shall be kept on file by the commissioner but it shall not be open to public  inspection prior to the release of the examination report to the public;

    c.  It shall be the duty of the commissioner to report to the board of directors when he has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to the policyholders or to the public;

    d.  The board of directors may, upon majority vote, make reports and recommendations to the commissioner upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer.  Such reports and recommendations shall not be considered public documents;

    e.  The board of directors may, upon majority vote, make recommendations to  the commissioner for the detection and prevention of insurer insolvencies;

    f.  The board of directors shall, at the conclusion of any insurer insolvency proceedings in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on  the information available to the association, and submit such report to the  commissioner.

     L.1974, c. 17, s. 13, eff. April 11, 1974.