N.Y. Insurance Law § 7711: Powers of the superintendent and the board of directors

§ 7711. Powers of the superintendent and the board of directors. In

addition to the duties and powers enumerated elsewhere in this chapter:

(a) The superintendent may suspend or revoke, after notice and

hearing, the certificate of authority to transact insurance in this

state of any member insurer which fails to pay an assessment when due or

fails to comply with the plan of operation. As an alternative the

superintendent may levy a penalty to be paid to the people of this

state, after notice and hearing, on any member insurer which fails to

pay an assessment when due. Such penalty shall not exceed five percent

of the unpaid assessment per month, but no penalty shall be less than

one hundred dollars per month.

(b) Any action of the board of directors or the corporation may be

appealed to the superintendent by any member insurer if such appeal is

taken within thirty days of the action being appealed. Any final action

or order of the superintendent shall be subject to judicial review in a

court of competent jurisdiction.

(c) Upon the request of the superintendent, the board of directors

shall render advice and make recommendations to the superintendent

concerning any matter affecting his duties and responsibilities

regarding the financial condition of member companies and companies

seeking admission to transact insurance business in this state.

(d) The board of directors shall establish a panel of advisors,

consisting of representatives of at least thirteen member insurers not

serving on the board of directors, knowledgeable as to the life and

health insurance business to provide it with information tending to

indicate that any member insurer or company seeking to do any insurance

business in this state is or may be in danger of becoming an impaired or

insolvent insurer; persons serving on the panel of advisors shall be

deemed agents of the corporation for purposes of section seven thousand

seven hundred sixteen of this article. The board of directors may, upon

majority vote, make reports and recommendations to the superintendent

upon any matter germane to the solvency, liquidation, rehabilitation or

conservation of any member insurer or germane to the solvency of any

company seeking to do an insurance business in this state. Such reports

and recommendations shall not be considered public documents. Nothing in

this article shall be deemed to limit the ability of a member of the

panel of advisors or any other person from reporting information germane

to the solvency of a member insurer or company seeking to do an

insurance business in this state to the superintendent or other lawful

authority or the corporation.

(e) It shall be the duty of the board of directors, upon majority

vote, to notify the superintendent of any information indicating any

member insurer may be an impaired or insolvent insurer.

(f) The board of directors may, upon majority vote, make

recommendations to the superintendent for the detection and prevention

of insolvencies.

(g) The board of directors shall, at the conclusion of any insurer

insolvency in which the corporation was obligated to pay covered claims,

prepare a report to the superintendent containing such information as it

may have in its possession bearing on the history and causes of such

insolvency. The corporation shall cooperate with the boards of directors

of guaranty associations or corporations in other states in preparing a

report on the history and causes for insolvency of a particular insurer,

and may adopt by reference any report prepared by such other

associations or corporations.