NY A10442

Expands superintendent authority to take action against insurers deemed to be in hazardous financial condition, adding a new standard beyond inadequate surplus: whether continued operation might be hazardous to policyholders, creditors, or the general public.

Establishes 20 specific factors the superintendent may consider when determining if an insurer's operations are hazardous, including adverse examination findings, reinsurer performance, operating losses, management competence, false financial statements, rapid growth, cash flow problems, and inadequate reserves.

Grants superintendent power to order insurers to take corrective actions including reducing liability through reinsurance, limiting premium volume, increasing capital and surplus, suspending dividends, filing interim financial reports, correcting governance deficiencies, submitting a business plan, and adjusting insurance rates.

Makes all proceedings and determinations regarding hazardous financial condition confidential and not subject to public inspection, except where superintendent finds release necessary to protect the public.

Requires hearing on record within 20 days of written notice to insurer unless waived, with determinations to include findings specifying significant factors and reasons for any suspension, restriction, or limitation ordered.