Section 1250.20  Criteria

To determine whether the continued operation of any insurer transacting insurance business in this State might be deemed to be hazardous to the policyholders, certificateholders, creditors or to the public, the Director may consider:

a)         adverse findings reported in financial and market conduct examination reports;

b)         the National Association of Insurance Commissioners Insurance Regulatory Information System and its related reports, the ratios of commission expense, general insurance expense, policy benefits and/or losses incurred to written premium or any other ratios used by the Department of Insurance to determine an insurer's financial condition;

c)         whether the value, liquidity, and diversity of the insurer's asset portfolio when viewed in light of current economic conditions assures the company's ability to meet its outstanding obligations as they mature;

d)         whether the insurer's reinsurance program provides adequate protection for the company's remaining surplus after taking into account the insurer's cash flow and the classes of business written;

e)         the financial condition of any assuming reinsurer and its ability to meet its obligations to the insurer;

f)          the insurer's operating loss in the last twelve month period or any shorter period of time, including but not limited to net capital gain or loss, change in non-admitted assets, and dividends paid to shareholders;

g)         whether any affiliate, subsidiary or parent of the insurer is insolvent, threatened with insolvency, or delinquent in the payment of its obligations;

h)         whether contingent liabilities, pledges or guaranties of the insurer, either individually or collectively, involve an amount that will affect the solvency of the insurer;

i)          whether any "controlling person" or other affiliate of the insurer, each as defined in Article VIII½ of the Illinois Insurance Code, is delinquent in the transmitting or payment of net premiums or any other payables to such insurer;

j)          the age and collectibility of its receivables;

k)         whether the management of an insurer, including officers, directors, or any other person who directly or indirectly controls the operation of such insurer, fails to possess and demonstrate the competence, fitness and reputation to serve the insurer in such position;

l)          whether management of an insurer has failed to respond to inquiries from the Department of Insurance concerning the condition of the insurer or has furnished false and misleading information concerning an inquiry;

m)        whether management of an insurer either has filed in any state a false or misleading sworn financial statement, has released a false or misleading financial statement to lending institutions or to the general public or, in the books of the insurer, has made a false or misleading entry, or omitted an entry of material amount;

n)         whether the insurer's premium volume has increased to the extent that it lacks financial and administrative capacity to meet its contractual or statutory obligations;

o)         whether the company has experienced cash flow and/or liquidity problems;

p)         the adequacy of the insurer's surplus as regards policyholders relative to its outstanding liabilities and its financial needs;

q)         any other relevant factors.