RSA 402-M:5 · Authority of Administrative Supervisor

402-M:5 Authority of Administrative Supervisor. –

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I.

During the period of supervision, the commissioner, or designee, shall serve as the administrative supervisor. If the commissioner appoints a designee to serve as administrative supervisor, then such person shall have all of the powers of the commissioner granted under this section and shall be considered a state officer or official under RSA 99-D. The commissioner may impose operating restrictions or requirements on the insurer during the period of administrative supervision which are deemed necessary for the protection of policyholders or the general public. The commissioner may order the insurer to:

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(a)

Reduce the total amount of present and potential liability for policy benefits by reinsurance;

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(b)

Reduce, suspend, or limit the volume of business being accepted or renewed;

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(c)

Reduce general insurance and commission expenses by specified methods;

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(d)

Increase the insurer's capital and surplus;

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(e)

Suspend or limit the declaration and payment of dividends by an insurer to its stockholders or to its policyholders;

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(f)

File reports in a form acceptable to the commissioner concerning the market value of an insurer's assets;

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(g)

Limit or withdraw from certain investments or discontinue certain investment practices to the extent the commissioner deems necessary;

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(h)

Document the adequacy of premium rates in relation to the risks insured;

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(i)

File, in addition to regular annual statements, interim financial reports on the form adopted by the NAIC or in such format as adopted by the commissioner; or

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(j)

Cease from engaging in certain business practices which are illegal or which the administrative supervisor deems harmful to policyholders or the general public.

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II.

In addition to the provisions of paragraph I, the commissioner may prohibit the insurer from engaging in any of the following acts during the period of supervision without the prior approval of the administrative supervisor:

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(a)

Dispose of, convey, or encumber any of its assets or its business in force;

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(b)

Withdraw any funds from its bank accounts;

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(c)

Lend any of its funds;

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(d)

Invest any of its funds;

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(e)

Transfer any of its property;

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(f)

Incur any debt, obligation, or liability;

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(g)

Merge or consolidate with any company;

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(h)

Approve new premiums or renew any policies;

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(i)

Enter into any new reinsurance contract or treaty;

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(j)

Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or contract, except for nonpayment of premiums due;

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(k)

Release, pay, or refund premium deposits, accrued cash or loan values, unearned premiums, or other reserves on any insurance policy, certificate, or contract;

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(l)

Make any material change in management; or

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(m)

Increase salaries and benefits of officers or directors or the preferential payment of bonuses, dividends, or other payments deemed preferential. Source. 2016, 17:1, eff. Jan. 1, 2017.

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