Title 31A Insurance Code
Chapter 28 Guaranty Associations
Section 111 Duties and powers under this part.
31A-28-111. Duties and powers under this part.
In addition to the duties and powers enumerated elsewhere in this part, the persons listed
in this section have the duties and powers described in Subsections (1) through (6).
(1) The commissioner shall:
(a) upon request of the board of directors, provide the association with a statement of the
premiums for each member insurer:
(i) in this state; and
(ii) any other appropriate state;
(b) if an impairment is declared and the amount of the impairment is determined, serve a
demand upon the impaired insurer to make good the impairment within a reasonable time; and
(c) in a liquidation or rehabilitation proceeding involving a domestic insurer, be appointed
as the liquidator or rehabilitator.
(2) Notice to the impaired insurer under Subsection (1)(b) shall constitute notice to the
shareholders of the impaired insurer if the impaired insurer has shareholders.
(3) The failure of the insurer to promptly comply with the commissioner's demand under
Subsection (1)(b) does not excuse the association from the performance of its powers and duties
under this part.
(4) (a) After notice and hearing, the commissioner may suspend or revoke the certificate
of authority to transact insurance in this state of any member insurer that fails to:
(i) pay an assessment when due; or
(ii) comply with the plan of operation.
(b) (i) As an alternative to suspending or revoking a certificate of authority under
Subsection (4)(a), the commissioner may levy a forfeiture on any member insurer that fails to pay
an assessment when due.
(ii) A forfeiture described in Subsection (4)(b)(i):
(A) may not exceed 5% of the unpaid assessment per month; and
(B) may not be less than $100 per month.
(5) (a) A final action of the board of directors or the association may be appealed to the
commissioner by any member insurer if appeal is taken within 60 days of the date the member
insurer received notice of the final action being appealed.
(b) If a member insurer is appealing an assessment, the amount assessed shall be:
(i) paid to the association; and
(ii) made available to meet association obligations during the pendency of an appeal.
(c) If the appeal on the assessment described in Subsection (5)(b) is upheld, the amount
paid in error or excess shall be returned to the member insurer.
(d) Any final action or order of the commissioner shall be subject to judicial review in a
court of competent jurisdiction in accordance with the laws of this state that apply to the actions
or orders of the commissioner.
(6) The liquidator, rehabilitator, or conservator of any impaired insurer shall notify all
interested persons of the effect of this part.
Amended by Chapter 161, 2001 General Session
Download Code Section Zipped WordPerfect 31A28_011100.ZIP 2,943 Bytes