Which power does the director NOT have under the Guaranty Association?

The correct choice highlights an important limitation on the powers of the director under the Guaranty Association. Specifically, the director does not have the authority to establish penalties for non-compliance. Instead, the functions of the director typically involve monitoring compliance and ensuring that member insurers fulfill their obligations, but the imposition of penalties usually falls under the jurisdiction of regulatory statutes or rules established by the legislature, rather than the discretionary power of the director.

In contrast, other responsibilities, such as notifying insureds of an insurer's insolvency, increasing maximum annual assessments on insurers, and revoking the authority of member insurers, are indeed within the traditional scope of the director's powers. This delineation of authority is critical in understanding the operational framework of the Guaranty Association and ensures that the director's role is clearly defined and limited to specific regulatory functions.