When the Commissioner takes over an insolvent company, what is his/her primary responsibility?

The primary responsibility of the Commissioner when taking over an insolvent company is to attempt to restore the company. This involves assessing the situation and determining if there are viable options to rehabilitate the company, allowing it to continue operations rather than immediately liquidating its assets. The goal is to stabilize the company and protect the interests of policyholders and other stakeholders.

Restoration can include implementing operational changes, restructuring debt, or securing additional financial support. While liquidation may ultimately occur if restoration efforts fail, the initial focus is on rehabilitation. This approach aligns with regulatory practices aimed at maintaining the stability of the insurance market and minimizing disruptions for policyholders.

Other choices, while related to the management of an insolvent company, do not reflect the primary focus of the Commissioner's role at the outset. Liquidating assets or transferring operations would typically be considered only after determining that restoration is not feasible. Notifying shareholders, while necessary, is not the central responsibility; the emphasis is on addressing the financial state and operational capacity of the company.