As Amended
SEC. 71-3-173. Examination of association members; powers and duties of the board of directors; detection and prevention of insolvency of members of association.
To aid in the detection and prevention of self-insurer insolvencies:
(a) The board of directors may, upon majority vote, request that the commission order an examination of any member self-insurer which the board in good faith believes may be in a financial condition hazardous to the potential claimants or the public. Within thirty (30) days of the receipt of such request, the commission shall begin such examination. The examination may be conducted by such persons as the commission designates. The cost of such examination shall be paid by the association, and the examination report shall be treated as are other examination reports. In no event shall such examination report be released to the board of directors prior to its release to the public, but this shall not preclude the commission from complying with paragraph (b) of this section. The commission shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the commission, but it shall not be open to public inspection prior to the release of the examination report to the public.
(b) It shall be the duty of the commission to report to the board of directors when it has reasonable cause to believe that any member self-insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to potential claimants or the public.
(c) The board of directors may, upon majority vote, make reports and recommendations to the commission upon any matter germane to the solvency, bankruptcy or reorganization of any member self-insurer. Such reports and recommendations shall not be considered public documents.
(d) The board of directors may, upon majority vote, make recommendations to the commission for the detection and prevention of member self-insurer insolvencies.
(e) The board of directors shall, at the conclusion of any self-insurer insolvency or bankruptcy case or in * * * the event of default by a member self-insurer where the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency and bankruptcy, based on the information available to the association, and submit such report to the commission.
SOURCES: Laws, 1988, ch. 554, Sec. 12; Laws, 2003, ch. 553, § 6, HB 1305, eff from and after July 1, 2003.
PREVIOUS VERSIONS: Pre-2003