Section 71-3-173 - Examination of association members; powers and duties of the board of directors; detection and prevention of insolvency of members of associationTo aid in the detection and prevention of individual self-insurer insolvencies and group self-insurer insolvencies:
(a) The board of directors of an association may, upon majority vote, request that the commission order an examination of any of its member self-insurers and group self-insurers which the board in good faith believes may be in a financial condition hazardous to the potential claimants or the public. Upon making any such request to the commission, such board of directors shall recommend for commission approval persons to perform the examination. The examination shall commence within thirty (30) days following the commission's approval of such request for examination. The commission may request a board of directors to recommend for commission approval, and a board of directors can request the commission to approve, alternative persons to complete an examination if it is believed the examination is not being performed in a timely and efficient manner. The cost of such examination shall be paid by the association requesting such examination, and examination reports shall be forwarded to the commission and treated as are other examination reports. In no event shall reports of such examination be released to the board of directors of such association prior to 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 of such association when the examination is completed. Each request for an examination by an association shall be kept on file by the commission, but it shall not be open to public inspection prior to the release of an examination report to the public.(b) It shall be the duty of the commission to report to the board of directors of an association when it has reasonable cause to believe that any member self-insurer or group self-insurer examined or being examined at the request of the board of directors of such association may be insolvent or in a financial condition hazardous to potential claimants or the public.(c) The board of directors of an association may, upon majority vote, make reports and recommendations to the commission upon any matter germane to the solvency, bankruptcy or reorganization of any of its member self-insurer s and group self-insurers. Such reports and recommendations shall not be considered public documents.(d) The board of directors of an association may, upon majority vote, make recommendations to the commission for the detection and prevention of member self-insurer insolvencies and group self-insurer insolvencies.(e) The board of directors of an association shall, at the conclusion of any insolvency, bankruptcy case or default where such 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 such association, and submit such report to the commission.Laws, 1988, ch. 554, § 12; Laws, 2003, ch. 553, § 6; Laws, 2004, ch. 555, § 9, eff. 7/1/2004.