What are the consequences if a member insurer fails to pay an assessment on time?

If a member insurer fails to pay an assessment on time, the consequence of having their certificate of authority suspended or revoked underscores the serious regulatory environment surrounding insurance practices. The certificate of authority is a critical document that allows insurers to operate legally within a state. If they do not comply with financial obligations, such as assessments, regulators may take strong action to protect policyholders and maintain the integrity of the insurance market. By suspending or revoking the certificate, authorities ensure that only financially responsible companies can continue to provide coverage, which ultimately supports consumer protection and market stability. This action reflects the importance of timely payment in maintaining good standing and operational rights within the insurance framework.