If an insurer falls into insolvency, which action is mandated?

When an insurer faces insolvency, the primary goal is to restore its viability. This process involves assessing the financial situation of the insurer and taking steps to rectify any issues, allowing the company to potentially become solvent again. The restoration of an insurer's financial health often requires comprehensive strategies, including restructuring its debts, improving its operational efficiency, or finding a merger or acquisition partner.

The other options do not align with the mandated actions typically seen in insolvency situations. Reinsurance agreements typically involve private negotiations that may not be a primary focus during insolvency, and bringing them up for renewal is not a mandatory action. Claims do not require approval from the Commissioner just because an insurer becomes insolvent; generally, existing claims must be settled based on prior agreements and regulations, with claims filing procedures continuing as usual. The immediate reimbursement of policyholders is unlikely, as the resolution of claims and reimbursements generally occurs later in the insolvency process, often depending on the remaining assets available to satisfy those claims. Thus, the focus on attempts to restore viability accurately reflects the mandated response to an insurer's insolvency.