§ 58-63-40. Procedure as to unfair methods of competition and unfair or deceptive acts or practices which are not defined.
§58‑63‑40. Procedure as to unfair methods of competition and unfairor deceptive acts or practices which are not defined.
(a) Whenever theCommissioner shall have reason to believe that any person engaged in thebusiness of insurance is engaging in this State in any method of competition orin any act or practice in the conduct of such business which is not defined inG.S. 58‑63‑15, that such method of competition is unfair or thatsuch act or practice is unfair or deceptive and that a proceeding by him inrespect thereto would be to the interest of the public, he may issue and serveupon such person a statement of the charges in that respect and a notice of ahearing thereon to be held at a time and place fixed in the notice, which shallnot be less than 10 days after the date of the service thereof. Each suchhearing shall be conducted in the same manner as the hearings provided for inG.S. 58‑63‑25. The Commissioner shall, after such hearing, make areport in writing in which he shall state his findings as to the facts, and heshall serve a copy thereof upon such person.
(b) If such reportcharges a violation of this Article and if such method of competition, act orpractice has not been discontinued, the Commissioner may, through the AttorneyGeneral of this State, at any time after 10 days after the service of suchreport cause a petition to be filed in the superior court of this State of thecounty wherein the person resides or has his principal place of business, toenjoin and restrain such person from engaging in such method, act or practice. The court shall have jurisdiction of the proceeding and shall have power tomake and enter appropriate orders in connection therewith and to issue suchwrits as are ancillary to its jurisdiction or are necessary in its judgment toprevent injury to the public pendente lite. To the extent that the order ofthe Commissioner is affirmed, the court shall thereupon issue its ordercommanding obedience to the terms of such order of the Commissioner.
(c) A transcript of theproceedings before the Commissioner including all evidence taken and the reportand findings shall be filed with such petition. If either party shall apply tothe court for leave to adduce additional evidence and shall show, to thesatisfaction of the court, that such additional evidence is material and therewere reasonable grounds for the failure to adduce such evidence in theproceeding before the Commissioner, the court may order such additionalevidence to be taken before the Commissioner and to be adduced upon the hearingin such manner and upon such terms and conditions as to the court may seemproper. The Commissioner may modify his findings of fact or make new findingsby reason of the additional evidence so taken, and he shall file such modifiedor new findings with the return of such additional evidence.
(d) If the court findsthat the method of competition complained of is unfair or that the act orpractice complained of is unfair or deceptive, that the proceeding by theCommissioner with respect thereto is to the interest of the public and that thefindings of the Commissioner are supported by the weight of the evidence, itshall issue its order enjoining and restraining the continuance of such methodof competition, act or practice. (1949, c. 1112.)