Section 031-231-9 - Denial of ApplicationA. Grounds for DenialThe Superintendent may deny the Applicant a Certificate of Authority, upon finding that any of the following conditions exists:
(1) Failure to comply with the requirements of this Rule or other applicable law.(2) Evidence of misconduct or unfitness in the management of the Applicant or in the management of any of its affiliates.(3) The termination of the Applicant's Certificate of Authority or denial of its application for licensure in another jurisdiction, unless the Applicant proves to the satisfaction of the Superintendent that the circumstances of the termination or denial do not justify denial of the Maine application.(4) Two or more of the following unfavorable financial trends: (a) A year-to-year decrease of the Applicant's risk-based capital ratio by more than 100 percentage points in each of the two most recent years.(b) A cumulative decrease of surplus in excess of 25% over the three most recent years.(c) A ratings downgrade of two or more levels over the past two years by any one of the nationally recognized ratings service organizations.(d) Adjustments to reserves due to under-reserving in excess of 10% of surplus in either of the two most recent years.(e) Decrease of profitability in each of the three most recent years.(f) Negative cash flow from operations in each of the last three years.(g) Reliance on contributions to surplus from a parent or an affiliate, in order to maintain an adequate level of surplus.(h) Any other financial trend identified by the Superintendent that indicates a deterioration in the Applicant's financial condition over the most recent preceding three-year period. When assessing financial trends, the analyst shall consider the change in the Applicant's premium volume and asset size as well as any other material changes to the operations of the Applicant.
(5) Failure of the Applicant to update its application or to provide additional information requested by the Superintendent within a reasonable timeframe, not to exceed 30 days.(6) Any other compelling evidence demonstrating that the Applicant is not qualified to transact insurance in this State.B. Opportunity for ReconsiderationThe Applicant may seek reconsideration of any finding made by the Superintendent under this Section, by filing a formal request with all supporting materials within 30 days after issuance of the finding.
C. Repetitive ApplicationsOnce the denial of an application has become final, the Applicant may not reapply within one year.
02-031 C.M.R. ch. 231, § 9