58-4-1
Repealed.
58-4-2 to 58-4-4.
Repealed.
58-4-5
Enforcement proceedings instituted by director.
58-4-6
Proceedings instituted by director--Legal representation.
58-4-7
Cease and desist order to prevent violations of title--Injunction.
58-4-8
Repealed.
58-4-9
Hearings by director--Purpose.
58-4-10 to 58-4-14.
Repealed.
58-4-15
Orders and notices of director required to be in writing--Signature.
58-4-16
Order of director--Effective date--Contents.
58-4-17
Service of orders and notices of director.
58-4-18
Prosecution of action for enforcement of director's order.
58-4-19 to 58-4-24.
Repealed.
58-4-25
Formal rules of pleading or evidence not observed at director's hearing.
58-4-26 to 58-4-28.
Repealed.
58-4-28.1
Money penalty in lieu of license suspension or other action--Hearing.
58-4-29 to 58-4-38.
Repealed.
58-4-39
Standards for determining hazardous financial condition.
58-4-40
Authority of director in determining insurer's financial condition.
58-4-41
Director's order to hazardous insurer.
58-4-42
Hearings on director's orders.
58-4-43
Application of hazardous insurer provisions.
58-4-44
Investigation of insurance business--Withholding report from public
inspection--Timely completion--Notice of closing investigation or final action.
58-4-45
Confidentiality of certain documents.
58-4-46
Liability for release of information.
58-4-47
Sharing and use of confidential information with other regulatory officials--Cooperation with National Association of Insurance Commissioners.
58-4-48
Minimum levels of risk-based capital required--Administrative rules.
58-4-49
Disclosure of status, existence, or outcome of investigation or examination.
58-4-50
Definitions.
58-4-51
Confidentiality of list of premium taxpayers--Violation as misdemeanor.
58-4-52
Confidentiality of premium tax return and return information--Violation as
misdemeanor.
58-4-53
Disclosure of premium tax return and information to taxpayer.
58-4-54
Disclosure of premium tax return and return information in judicial or
administrative proceeding.
58-4-5. Enforcement proceedings instituted by director.
The director shall institute such suits or other legal proceedings as may be required for the enforcement of any provisions of this title.
Source: SL 1966, ch 111, ch 2, § 12 (1).
58-4-6. Proceedings instituted by director--Legal representation.
The director shall be represented by the attorney general, his assistants, or by such other attorney at law as may be designated by the attorney general.
Source: SL 1966, ch 111, ch 2, § 12 (3).
58-4-7. Cease and desist order to prevent violations of title--Injunction.
If the director of the Division of Insurance believes, from substantial evidence, that any person is violating or about to violate any provision of this title or any order or requirement of the director issued or promulgated pursuant to authority expressly granted by law, the director may issue a temporary cease and desist order pending a hearing pursuant to chapter 1-26. The order shall set the time and place for hearing not less than ten days nor more than twenty days from the date of the order. The director may also bring an action in the name of the state against such person to enjoin that person from continuing the violation or engaging therein, or doing any act in furtherance thereof. In such action an order or judgment may be entered awarding such temporary or permanent injunction as is proper.
Source: SL 1966, ch 111, ch 32, § 6; SL 1978, ch 155, § 25; SL 1985, ch 385, § 1.
58-4-9. Hearings by director--Purpose.
The director may hold hearings for any purpose within the scope of this title deemed by him to be necessary.
Source: SL 1966, ch 111, ch 2, § 21 (1).
58-4-15. Orders and notices of director required to be in writing--Signature.
Orders and notices of the director shall not be effective unless in writing signed by him or by his authority.
Source: SL 1966, ch 111, ch 2, § 15 (1).
58-4-16. Order of director--Effective date--Contents.
Every such order shall state its effective date and shall concisely state:
(1) Its intent or purpose;
(2) The grounds on which based; and
(3) The provisions of this title pursuant to which action is so taken or proposed to be taken, but failure to so designate a particular provision shall not deprive the director of the right to rely thereon.
Source: SL 1966, ch 111, ch 2, § 15 (2).
58-4-17. Service of orders and notices of director.
An order or notice may be given by delivery to the person to be ordered or notified or by mailing it, postage prepaid, addressed to him at his principal place of business as last of record in the director's office.
Source: SL 1966, ch 111, ch 2, § 15 (3).
58-4-18. Prosecution of action for enforcement of director's order.
The director shall prosecute an action in any court of proper venue to enforce any order made by him pursuant to the provisions of this title.
Source: SL 1966, ch 111, ch 2, § 12 (2).
58-4-25. Formal rules of pleading or evidence not observed at director's hearing.
Formal rules of pleading or evidence need not be observed at any hearing.
Source: SL 1966, ch 111, ch 2, § 24 (3).
58-4-28.1. Money penalty in lieu of license suspension or other action--Hearing.
In any case in which the director has the power to deny an application or registration, or to revoke, refuse to renew, or suspend the license of any insurance producer, administrator, licensee, or entity required to be registered under this title, or the certificate of authority of any insurance company or health maintenance organization, the director may impose a specified money penalty to be paid within a specified time in lieu of a license suspension or other permitted action. No penalty may be imposed under this section prior to a hearing conducted pursuant to chapter 1-26 unless the applicant, licensee, or registrant agrees to the penalty in writing.
The money penalty may not exceed five thousand dollars for an insurance producer or twenty-five thousand dollars for an insurer, administrator, health maintenance organization, licensee, or registrant for each offense.
Source: SL 1971, ch 273; SL 1974, ch 308; SL 2000, ch 235, § 1; SL 2001, ch 286, § 66; SL 2014, ch 233, § 1.
58-4-39. Standards for determining hazardous financial condition.
The director shall promulgate rules, pursuant to chapter 1-26, setting forth standards for determining the hazardous financial condition of an insurer under this title.
Source: SL 1992, ch 339, § 1.
58-4-40. Authority of director in determining insurer's financial condition.
In making a determination of an insurer's financial condition, the director may:
(1) Disregard any credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impaired, or subject to a delinquency proceeding;
(2) Make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;
(3) Refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor;
(4) Increase the insurer's liability in an amount equal to any contingent liability, pledge, or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve-month period; or
(5) Consider the harm to policyholders, creditors, the public, and the company itself.
Source: SL 1992, ch 339, § 2.
58-4-41. Director's order to hazardous insurer.
If the director determines that the continued operation of an insurer licensed to transact business in this state may be hazardous to the policyholders, the creditors, or the general public, then the director may issue an order stating the reasons for the determination and requiring the insurer to:
(1) Reduce the total amount of present and potential liability for policy benefits by reinsurance;
(2) Reduce, suspend, or limit the volume of business being accepted or renewed;
(3) Reduce general insurance and commission expenses by specified methods;
(4) Increase the insurer's capital and surplus;
(5) Suspend or limit the declaration and payment of dividend by an insurer to its stockholders or to its policyholders;
(6) File reports in a form acceptable to the director concerning the market value of an insurer's assets;
(7) Limit or withdraw from certain investments or discontinue certain investment practices to the extent the director deems necessary;
(8) Document the adequacy of premium rates in relation to the risks insured;
(9) File, in addition to regular annual statements, interim financial reports on the form adopted by the national association of insurance commissioners or in a format as promulgated by the director;
(10) Correct corporate governance practice deficiencies, and adopt and utilize governance practices acceptable to the director;
(11) Provide a business plan to the director in order to continue to transact business in the state; or
(12) Notwithstanding any other provision of law limiting the frequency or amount of premium rate adjustments, adjust rates for any nonlife insurance product written by the insurer that the director determines necessary to improve the financial condition of the insurer.
If the insurer is a foreign insurer, the director's order may be limited to the extent provided by statute.
Source: SL 1992, ch 339, § 3; SL 2013, ch 244, § 1.
58-4-42. Hearings on director's orders.
Any insurer subject to an order under § 58-4-41 may request a hearing to review that order. The request shall be in writing and shall be made within ten days of the date of receipt of the order. The notice of hearing shall be served upon the insurer. Unless mutually agreed between the director and the insurer, the hearing shall occur not less than ten days nor more than thirty days after notice is served and shall be in Hughes County. The director shall hold all hearings under this section privately, unless the insurer requests a public hearing in which case the hearing shall be public.
Source: SL 1992, ch 339, § 4.
58-4-43. Application of hazardous insurer provisions.
Sections 58-4-39 to 58-4-42, inclusive, apply to all insurers or persons doing insurance business notwithstanding any provision which exempts them from the insurance laws of this title.
Source: SL 1992, ch 339, § 5.
58-4-44. Investigation of insurance business--Withholding report from public inspection--Timely completion--Notice of closing investigation or final action.
The director may investigate any person doing insurance business. The director may withhold from public inspection any examination or investigation report for so long as the director deems such withholding to be necessary for the protection of the person examined or investigated against unwarranted injury or to be in the public interest. The director shall complete any investigation in a timely manner. Any investigation not completed within twenty-four months shall be presented to the secretary of labor and regulation. If, after sixty days, the secretary has not completed the investigation, the secretary shall forward the matter to the attorney general who shall review the file and make recommendations to the secretary for the purpose of ensuring final action is taken concerning the investigation. If the Division of Insurance has given notice of a pending investigation to any person or legal entity, the division shall notify any such person or legal entity that the investigation is closed or final action has been taken.
Source: SL 1992, ch 340, § 1; SL 2006, ch 250, § 1; SL 2011, ch 1 (Ex. Ord. 11-1), § 162, eff. Apr. 12, 2011.
58-4-45. Confidentiality of certain documents.
Internal memoranda and telephone notes or logs of division personnel are confidential. Medical records are confidential.
Source: SL 1992, ch 340, § 2.
58-4-46. Liability for release of information.
Any person or corporation governed by this title providing information to the Division of Insurance is not liable for the release or subsequent use of such information.
Source: SL 1992, ch 340, § 3.
58-4-47. Sharing and use of confidential information with other regulatory officials--Cooperation with National Association of Insurance Commissioners.
The division shall allow for the sharing of otherwise confidential information, administrative or judicial orders, or other action with other state, federal, and international regulatory officials if those officials are statutorily required to maintain its confidentiality. The division shall cooperate and share all information with respect to domestic companies with other state, federal, and international regulators including committees established by the National Association of Insurance Commissioners which may be reviewing and coordinating regulatory oversight and activities. The division shall also cooperate and share information with respect to domestic companies subject to delinquency proceedings. The division may receive documents, materials, or information, including otherwise confidential and privileged documents, materials, or information from the National Association of Insurance Commissioners, its affiliates, or subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions. The division shall maintain as confidential or privileged any document, material, or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material, or information. The director may use the documents, materials, or other information in the furtherance of any regulatory function or legal action brought as a part of the director's duties.
Source: SL 1995, ch 274; SL 2007, ch 294, § 5.
58-4-48. Minimum levels of risk-based capital required--Administrative rules.
Any life and health and property and casualty insurer, and any insurer subject to chapters 58-37A, 58-38, 58-39, 58-40, and 58-41, domiciled in this state shall maintain minimum levels of risk-based capital to transact the business of insurance in this state. Each life and health and property and casualty domestic insurer, and any insurer subject to chapters 58-37A, 58-38, 58-39, 58-40, and 58-41, shall file with the director, on or before March first of each year, a report disclosing the insurer's level of risk-based capital. Any foreign life and health and property and casualty insurer, and any insurer subject to chapters 58-37A, 58-38, 58-39, 58-40, and 58-41, shall file a similar report upon the request of the director. The director of the Division of Insurance may promulgate rules, pursuant to chapter 1-26, regarding the filing of risk-based capital reports, the establishment of various minimum levels of risk-based capital requirements, the criteria and standards for which an insurer shall be required to submit a risk-based capital plan, the director's authority to revise or adopt the insurer's risk-based capital report or plan, the opportunity for hearing regarding the director's decision to revise an insurer's risk-based capital report or plan, the director's authority to require corrective actions, the confidentiality of risk-based capital reports and plans, and the exemption of certain insurers from the requirements of this section. The director may promulgate rules, pursuant to chapter 1-26, concerning the filing of risk-based capital reports to assist the director in the evaluation of the hazardous financial condition of an insurer pursuant to § 58-4-39.
Source: SL 1996, ch 289; SL 2001, ch 269, § 1.
58-4-49. Disclosure of status, existence, or outcome of investigation or examination.
The status, existence, or outcome of any ongoing or completed investigation or examination performed pursuant to this title may be disclosed by the director to any person who has filed a complaint or report to the director pertaining to the specific investigation or examination. The director may disclose the following information to any person identified by this section:
(1) Any remedial actions agreed to by a licensee being investigated or examined;
(2) Any remedial actions ordered by the director as a result of an examination or investigation; or
(3) Any other such information as the parties to the remedial action may agree to release in writing.
The director may also disclose the above information to any policyholder who contacts the director and who is directly affected by any action listed above. Confidential information shared with the director may not be disclosed. However, nothing in this section prevents the director from providing a copy of licensee responses or other materials submitted by a licensee to complaints or inquiries if the response or materials are not specifically marked confidential. Sections 58-4-49 to 58-4-54, inclusive, do not apply to investigations conducted pursuant to chapter 58-4A.
Source: SL 2012, ch 242, § 1; SL 2014, ch 234, § 1.
58-4-50. Definitions.
Terms used in §§ 58-4-50 to 58-4-54, inclusive, mean:
(1) "Return information," any information collected, prepared or received by the division which relates to a return, including the nature or amount of a taxpayer's income, receipts, deductions, net worth, tax liability, or deficiencies, or any part of any written determination or background file documents relating to such information. The term does not include data in a form which cannot be associated with or otherwise identify, directly or indirectly, a particular taxpayer;
(2) "Returns," all tax returns, tax reports or claims for refund which are filed with the division.
Source: SL 2012, ch 242, § 2.
58-4-51. Confidentiality of list of premium taxpayers--Violation as misdemeanor.
Each list of premium taxpayers compiled by the division is confidential. It is a Class 2 misdemeanor to disclose any list except to the extent necessary to carry out the official duties of the division.
Source: SL 2012, ch 242, § 3.
58-4-52. Confidentiality of premium tax return and return information--Violation as misdemeanor.
A premium tax return and premium tax return information is confidential. It is a Class 1 misdemeanor to disclose this information except pursuant to §§ 58-4-50 to 58-4-54, inclusive.
Source: SL 2012, ch 242, § 4.
58-4-53. Disclosure of premium tax return and information to taxpayer.
A premium tax return and premium tax return information may be disclosed to the following:
(1) The taxpayer who is required to submit the information to the division, or his designee appointed in writing; or
(2) As otherwise authorized by Title 58.
Source: SL 2012, ch 242, § 5.
58-4-54. Disclosure of premium tax return and return information in judicial or administrative proceeding.
A premium tax return and premium tax return information may be disclosed in a judicial or administrative proceeding:
(1) If the information is directly related to the resolution of an issue in the proceeding; or
(2) To the extent required by a judicial or administrative order.
Source: SL 2012, ch 242, § 6.
