| (37) an insurer does not follow a policy on rating
and underwriting standards appropriate to the risk;
(38) an insurer violates the Insurance Code Chapters
422 and 423;
(39) a final administrative or judicial order, initiated
by an insurance regulatory agency of another state, is issued against
an insurer;
(40) an insurer is in any condition that the commissioner
of insurance finds to present a hazard to policyholders, creditors,
or the general public.
(b) For purposes of making a determination of an insurer's
financial condition under this section, the commissioner may take
action, including:
(1) disregard any credit or amount receivable resulting
from transactions with a reinsurer that is insolvent, impaired, or
otherwise subject to a delinquency proceeding;
(2) make appropriate adjustments, including disallowance
to asset values attributable to investments or transactions consistent
with the NAIC Accounting Policies and Procedures Manual, state laws
and regulations;
(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; or
(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 on
to meet the obligation undertaken within the next 12-month period.
(c) If the commissioner determines that the continued
operation of the insurer licensed to transact business in this state
may be hazardous to its policyholders, creditors, or the general public,
then the commissioner may take any action the commissioner considers
reasonably necessary to remedy the hazardous condition, including,
but not limited to, those actions set forth in Insurance Code §404.003(c)
and the following additional actions:
(1) require the insurer to reduce, suspend, or limit
the volume of business being renewed;
(2) suspend or limit the declaration and payment of
dividends by an insurer to its stockholders or to its policyholders;
(3) require the insurer to file reports, in a form
acceptable to the commissioner, concerning the market value of an
insurer's assets;
(4) require the insurer to limit or withdraw from certain
investments or discontinue certain investment practices, to the extent
the commissioner deems necessary;
(5) require the insurer to 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
acceptable to the commissioner;
(6) require the insurer to provide a business plan
to the commissioner, in order to continue to transact business in
this state;
(7) adjust rates for any non-life insurance product
written by the insurer that the commissioner considers necessary to
improve the financial condition of the insurer, notwithstanding any
other provision of law limiting the frequency or amount of premium
rate adjustment;
(8) document the adequacy of premium rates in relation
to the risks insured; and
(9) correct corporate governance practice deficiencies,
and adopt and utilize governance practices acceptable to the commissioner.
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