KRS 304.42-110: Duties and powers of commissioner.

In addition to the duties and powers enumerated elsewhere in this subtitle:

(1) The commissioner shall:

(a) Upon request of the board of directors, provide the association with a

statement of the premiums in the appropriate states for each member insurer;

(b) When 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. Notice to the impaired insurer shall

constitute notice to its shareholders, if any. The failure of the impaired insurer

to promptly comply with the demand shall not excuse the association from the

performance of its powers and duties under this subtitle; and

(c) In any liquidation or rehabilitation proceeding involving a domestic me mber

insurer, be appointed as the liquidator or rehabilitator. If a foreign or alien

member insurer is subject to a liquidation proceeding in its domiciliary

jurisdiction or state of entry, the commissioner may be appointed conservator.

(2) The commissione r may suspend or revoke, after notice and hearing conducted in

accordance with KRS Chapter 13B, the certificate of authority or license to transact

business in this state of any member insurer which fails to pay an assessment when

due or fails to comply wi th the plan of operation. As an alternative the

commissioner may levy a forfeiture on any member insurer which fails to pay an

assessment when due. A forfeiture shall not exceed five percent (5%) of the unpaid

assessment per month, but no forfeiture shall be less than one hundred dollars

($100) per month.

(3) Any final action of the board of directors or the association may be appealed to the

commissioner by any member insurer if the appeal is taken within sixty (60) days of

its receipt of notice of the act ion being appealed. Any final order of the

commissioner shall be subject to judicial review as set forth in Subtitle 2 of this

chapter and KRS Chapter 13B.

(4) The liquidator, rehabilitator, or conservator of any impaired insurer may notify all

interested persons of the effect of this subtitle.