§ 160.5. Commissioners summary orders.
(a) If the Commissioner has reasonable cause to believe that the continued operation of an insurer transacting insurance business in this Commonwealth is financially hazardous to the general public, holders of policies or certificates of insuance, or creditors, the Commissioner may, upon the Commissioners determination, issue an order under Article V of the act (40 P. S. § § 211 and 221.1221.63) or notice of deficiency under sections 2456 and 2457 of The Insurance Company Law of 1921 (40 P. S. § § 991.2456 and 991.2457). The order or notice may list the requirements for the insurer to abate the determination, including the following:
(1) Reducing the total amount of present and potential liability for policy benefits by reinsurance.
(2) Reducing, suspending or limiting the volume of business being accepted or renewed.
(3) Reducing general insurance and commission expenses by specified methods.
(4) Increasing the insurers capital or surplus, or both.
(5) Suspending or limiting the declaration and payment of dividends by an insurer to its stockholders or to its policyholders.
(6) Filing reports in a form acceptable to the Commissioner concerning the market value of an insurers assets and the value of its loss reserves or policy reserves, or both.
(7) Limiting or withdrawing from certain investments or discontinuing certain investment practices to the extent the Commissioner deems necessary.
(8) Documenting the adequacy of premium rates in relation to the risks insured.
(9) Documenting the adequacy of the return on invested assets in relation to the current interest credits in interest sensitive policies.
(10) Filing, in addition to regular annual statements, interim financial reports on a form approved by the Commissioner.
(11) Filing comprehensive business plans utilizing a format approved by the Commissioner and completed in accordance with instructions. Business plans filed under this paragraph will be given confidential treatment, will not be subject to subpoena and will not be made public by the Commissioner or another person without the prior written consent of the insurer to which it pertains.
(12) Correcting deficiencies in corporate governance practices and adopting and utilizing governance practice acceptable to the Commissioner.
(13) Adjusting premium rates for non-life insurance products written by the insurer as the Commissioner deems necessary to improve the insurers financial condition, notwithstanding other provisions of law that limit the frequency or amount of premium rate adjustments.
(b) For insurers not incorporated or organized under the laws of the Commonwealth, the Commissioners order or notice provided for under subsection (a) may be limited to the extent provided by law.
(c) An insurer subject to an order or notice under subsection (a) is entitled to a hearing to review that order in accordance with section 510 of the act (40 P. S. § 221.10) or section 2456(c) of The Insurance Company Law of 1921 (40 P. S. § 991.2456(c)), 2 Pa.C.S. § § 501508 and 701704 (relating to the Administrative Agency Law) and 1 Pa. Code Part II (relating to the general rules of administrative practice and procedure).
The provisions of this § 160.5 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. § § 66, 186, 411 and 412); sections 5.1 and 10 of the Health Maintenance Organization Act (40 P. S. § § 1555.1 and 1560); and sections 2456 and 2457 of The Insurance Company Law of 1921 (40 P. S. § § 991.2456 and 991.2457).
The provisions of this § 160.5 adopted January 8, 1993, effective January 9, 1993, 23 Pa.B. 171; amended March 5, 1993, effective March 6, 1993, 23 Pa.B. 1040; amended November 19, 2010, effective November 20, 2010, 40 Pa.B. 6661. Immediately preceding text appears at serial pages (249809) to (249810).
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