§ 7711. Powers of the superintendent and the board of directors. In
addition to the duties and powers enumerated elsewhere in this chapter:

(a) The superintendent may suspend or revoke, after notice and
hearing, the certificate of authority to transact insurance in this
state of any member insurer which fails to pay an assessment when due or
fails to comply with the plan of operation. As an alternative the
superintendent may levy a penalty to be paid to the people of this
state, after notice and hearing, on any member insurer which fails to
pay an assessment when due. Such penalty shall not exceed five percent
of the unpaid assessment per month, but no penalty shall be less than
one hundred dollars per month.

(b) Any action of the board of directors or the corporation may be
appealed to the superintendent by any member insurer if such appeal is
taken within thirty days of the action being appealed. Any final action
or order of the superintendent shall be subject to judicial review in a
court of competent jurisdiction.

(c) Upon the request of the superintendent, the board of directors
shall render advice and make recommendations to the superintendent
concerning any matter affecting his duties and responsibilities
regarding the financial condition of member companies and companies
seeking admission to transact insurance business in this state.

(d) The board of directors shall establish a panel of advisors,
consisting of representatives of at least thirteen member insurers not
serving on the board of directors, knowledgeable as to the life and
health insurance business to provide it with information tending to
indicate that any member insurer or company seeking to do any insurance
business in this state is or may be in danger of becoming an impaired or
insolvent insurer; persons serving on the panel of advisors shall be
deemed agents of the corporation for purposes of section seven thousand
seven hundred sixteen of this article. The board of directors may, upon
majority vote, make reports and recommendations to the superintendent
upon any matter germane to the solvency, liquidation, rehabilitation or
conservation of any member insurer or germane to the solvency of any
company seeking to do an insurance business in this state. Such reports
and recommendations shall not be considered public documents. Nothing in
this article shall be deemed to limit the ability of a member of the
panel of advisors or any other person from reporting information germane
to the solvency of a member insurer or company seeking to do an
insurance business in this state to the superintendent or other lawful
authority or the corporation.

(e) It shall be the duty of the board of directors, upon majority
vote, to notify the superintendent of any information indicating any
member insurer may be an impaired or insolvent insurer.

(f) The board of directors may, upon majority vote, make
recommendations to the superintendent for the detection and prevention
of insolvencies.

(g) The board of directors shall, at the conclusion of any insurer
insolvency in which the corporation was obligated to pay covered claims,
prepare a report to the superintendent containing such information as it
may have in its possession bearing on the history and causes of such
insolvency. The corporation shall cooperate with the boards of directors
of guaranty associations or corporations in other states in preparing a
report on the history and causes for insolvency of a particular insurer,
and may adopt by reference any report prepared by such other
associations or corporations.