Marvin Mandel, Governor                          1539

but this shall not excuse the Commissioner from his obligation to
comply with subsection (3). The Commissioner shall notify the board
of directors when the examination is completed. The request for an
examination shall be kept on file by the Commissioner, but it shall
not be open to public inspection prior to the release of the examina-
tion report to the public and shall be released at that time only if
the examination discloses that the examined insurer is unable or
potentially unable to meet its contractual obligations.

(3) The Commissioner shall report to the board of directors when
he has reasonable cause to believe that any member insurer exam-
ined at the request of the board of directors may be unable or poten-
tially unable to fulfill its contractual obligations.

(4) The board of directors may, upon majority vote, make re-
ports and recommendations to the Commissioner upon any matter
germane to the solvency, liquidation, rehabilitation or conservation
of any member insurer. Such reports and recommendations shall not
be considered public documents.

(5) The board of directors may, upon majority vote, make recom-
mendations to the Commissioner for the detection and prevention
of insurer impairments.

(6) The board of directors may, upon majority vote, make re-

ports and recommendations to the Commissioner upon any matter
germane to the solvency, liquidation, rehabilitation or conservation
of any member insurer. Such reports and recommendations shall
not be considered public documents.

(7) (6) The board of directors shall, at the conclusion of any in-
surer impairment in which the Association carried out its duties
under this Act or exercised any of its powers under this Act, prepare
a report on the history and causes of such impairment, based on the
information available to the Association, and submit such report to
the Commissioner.

516.    Appointment of Association Nominee.

The Association may recommend a natural person to serve as a
special deputy to act for the Commissioner and under his supervision
in the liquidation, rehabilitation, or conservation of any member
insurer.

517.    Miscellaneous Provisions.

(1)    Nothing in this Act shall be construed to reduce the liability
for unpaid assessments of the insureds of an impaired insurer oper-
ating under a plan with assessment liability.

(2)    Records shall be kept of all negotiations and meetings in
which the Association or its representatives are involved to discuss
the activities of the Association in carrying out its powers and duties
under Section 511. Records of such negotiations or meetings shall
be made public only upon the termination of a liquidation,, rehabili-
tation, or conservation proceeding involving the impaired insurer,
upon the termination of the impairment to OF the insurer, or upon
the order of a court of competent jurisdiction. Nothing in this sub-
section shall limit the duty of the Association to render a report of
its activities under Section 518.