Section 1250.30  Director's Authority

a)         For purposes of making a determination of an insurer's financial condition under this Part, the Director may:

1)         Disregard any credit or amount receivable resulting from transactions with a reinsurer that is insolvent, impaired or otherwise subject to a delinquency proceeding or which is a slow payor based on Schedule F or S of the Annual Financial Statements filed with the Department of Insurance by any Illinois licensed company having receivables due from that reinsurer;

2)         Make adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;

3)         Refuse to recognize the stated value of accounts receivable if the ability to collect the receivables is speculative in view of the age of the account or the financial condition of the debtor;

4)         Increase the insurer's liabilities to cover any contingent liability, pledge, or guarantee not otherwise included;

5)         Increase the company's reserves for losses, loss adjustment expenses, or unearned premium or any other liability to reflect adjustments recommended by the Department's financial examiners or actuaries or by the person preparing the statement of actuarial opinion as required by Section 136 of the Illinois Insurance Code (Ill. Rev. Stat. 1991, ch. 73, par. 748) [215 ILCS 5/136] and the NAIC Annual Statement Instructions for Property and Casualty Insurers;

6)         Make any other appropriate adjustment to the company's assets and liabilities necessary to reflect the insurer's financial condition.

b)         If the Director determines that the continued operation of the insurer licensed to transact business in this State may be hazardous to its policyholders, certificateholders, creditors or to the public, the Director may issue an order requiring the insurer to:

1)         reduce, by reinsurance, the total amount of its present and/or potential liability for policy benefits and loss claims;

2)         reduce, suspend or limit the volume of direct and/or assumed business being accepted or renewed;

3)         reduce general insurance and commission expenses by specified methods;

4)         increase its capital and surplus;

5)         suspend or limit the declaration and payment of dividends to its stockholders or to its policyholders;

6)         file a written report indicating the market value of its assets;

7)         limit or withdraw from certain investments or discontinue certain investment practices to the extent the Director deems necessary;

8)         document the adequacy of premium rates in relation to the risks insured;

9)         file monthly financial reports;

10)         suspend or limit the repurchases of any of its own outstanding shares (i.e., treasury shares);

11)         seek prior approval of the Director before entering into any affiliated transactions;

12)         provide statement of actuarial opinion prepared by an independent actuary other than that person having prepared the opinion filed by the company in conjunction with its most recent annual financial statements;

13)         disapprove the payment of any ordinary dividend or other distribution to shareholders;

14)         take any other action which the Director deems to be remedial.

c)         Any insurer subject to an order under subsection (b) above may file a written request for an administrative hearing.  The administrative hearing shall be conducted pursuant to the requirements of Section 186.1 of the Illinois Insurance Code (Ill. Rev. Stat. 1991, ch. 73, par. 798.1(5)(a) and (6)) [215 ILCS 5/186.1(5)(a) and (6)].