§ 160.5. Commissioner’s summary orders.

 (a)  If the Commissioner has reasonable cause to believe that the continued operation of an insurer transacting insurance business in this Commonwealth is financially hazardous to the policyholders or the general public, the Commissioner may, upon the Commissioner’s determination, issue an order under Article V of the act (40 P. S. § §  221.1—221.63). The order may list the requirements for the insurer to abate the determination, including the following:

   (1)  Reducing the total amount of present and potential liability for policy benefits by reinsurance.

   (2)  Reducing, suspending or limiting the volume of business being accepted or renewed.

   (3)  Reducing general insurance and commission expenses by specified methods.

   (4)  Increasing the insurer’s surplus.

   (5)  Suspending or limiting the declaration and payment of dividends by an insurer to its stockholders or to its policyholders.

   (6)  Filing reports in a form acceptable to the Commissioner concerning the market value of an insurer’s assets and the value of its loss or policy, or both, reserves.

   (7)  Limiting or withdrawing from certain investments or discontinuing certain investment practices to the extent the Commissioner deems necessary.

   (8)  Documenting the adequacy of premium rates in relation to the risks insured.

   (9)  Documenting the adequacy of the return on invested assets in relation to the current interest credits in interest sensitive policies.

   (10)  Filing, in addition to regular annual statements, interim financial reports on a form approved by the Commissioner.

   (11)  Filing comprehensive business plans utilizing a format approved by the Commissioner and completed in accordance with instructions. Business plans filed under this paragraph will be given confidential treatment, will not be subject to subpoena and will not be made public by the Commissioner or another person without the prior written consent of the insurer to which it pertains.

 (b)  If the insurer is a foreign insurer, the Commissioner’s order provided for in subsection (a) may be limited to the extent provided by statute.

 (c)  An insurer subject to an order under subsection (a) is entitled to a hearing to review that order in accordance with Article V of the act (40 P. S. §  221.10), 2 Pa.C.S. § §  501—508 and 701—704 (relating to the Administrative Agency Law) and 1 Pa. Code Part II (relating to the general rules of administrative practice and procedure).

   The provisions of this §  160.5 adopted January 8, 1993, effective January 9, 1993, 23 Pa.B. 171; amended March 5, 1993, effective March 6, 1993, 23 Pa.B. 1040.