Sec. 31-326. Proceedings against delinquent insurance companies or employers.
Sec. 31-326. Proceedings against delinquent insurance companies or employers. Whenever the chairman of the Workers' Compensation Commission finds that
any insurance company or association insuring the liability of an employer under the
provisions of this chapter is conducting such business improperly or is dilatory in investigating and adjusting claims or making payments, or fails to comply with the provisions
of this chapter or the rules, methods or procedure and forms adopted by the chairman,
the chairman shall notify the Insurance Commissioner, in writing, setting forth the facts,
and thereupon the Insurance Commissioner shall fix a time and place for a hearing
thereon, giving reasonable notice to the chairman and to such company or association
of such hearing, and, if he finds the allegations to be true, he shall either suspend for a
time or revoke the license of such company or association to transact such business
in this state. Whenever a compensation commissioner has reason to believe that any
employer who has furnished proof of his financial ability or filed with the Insurance
Commissioner security for the performance of the obligations of this chapter in accordance with section 31-284 is dilatory in investigating or adjusting claims or in making
payments, or fails to comply with the provisions of this chapter or the rules, methods
of procedure and forms adopted by the chairman, he may notify the Insurance Commissioner, in writing, setting forth the facts, and thereupon the Insurance Commissioner
shall fix the time and place for a hearing thereon, giving reasonable notice to the commissioner and to such employer, and, if he finds the allegations to be true, then, after ten
days from the notice of such findings to such employer, the compliance of such employer
with the terms of section 31-284 shall be, as to any future injuries, null and void.
(1949 Rev., S. 7466; 1958 Rev., S. 31-193; 1961, P.A. 491, S. 52; P.A. 77-614, S. 163, 610; P.A. 80-482, S. 205, 348;
P.A. 91-339, S. 33, 55.)
History: 1961 act entirely replaced previous provisions; P.A. 77-614 made insurance department a division within the
department of business regulation with insurance commissioner as its head, effective January 1, 1979; P.A. 80-482 reinstated
insurance division as an independent department with commissioner as its head and deleted reference to abolished department of business regulation; P.A. 91-339 changed "compensation commissioners, or a majority of them" to "chairman of
the workers' compensation commission".
Cited. 28 CS 5.