§ 27-14.1-3 - Notice to comply with written requirements of commissioner – Noncompliance – Administrative supervision.
SECTION 27-14.1-3
§ 27-14.1-3 Notice to comply with writtenrequirements of commissioner – Noncompliance – Administrativesupervision. – (a) An insurer may be subject to administrative supervision by the commissionerif upon examination or at any other time it appears in the commissioner'sdiscretion that:
(1) The insurer's condition renders the continuance of itsbusiness hazardous to the public or to its insured;
(2) The insurer appears to have exceeded its powers grantedunder its certificate of authority and applicable law;
(3) The insurer has failed to comply with the applicableprovisions of the insurance code;
(4) The business of the insurer is being conductedfraudulently; or
(5) The insurer gives its consent.
(b) If the commissioner determines that the conditions setforth in subsection (a) of this section exist, the commissioner shall:
(1) Notify the insurer of his or her determination;
(2) Furnish to the insurer a written list of the requirementsto abate this determination; and
(3) Notify the insurer that it is under the supervision ofthe commissioner and that the commissioner is applying and effectuating theprovisions of the chapter. The action by the commissioner shall be subject toreview pursuant to applicable state administrative procedures under theAdministrative Procedures Act, chapter 35 of title 42.
(c) If placed under administrative supervision, the insurershall have sixty (60) days, or another period of time as designated by thecommissioner, to comply with the requirements of the commissioner subject tothe provisions of this chapter.
(d) If it is determined after notice and hearing that theconditions giving rise to the supervision still exist at the end of thesupervision period specified in subsection (c) of this section, thecommissioner may extend the period.
(e) If it is determined that none of the conditions givingrise to the supervision exist, the commissioner shall release the insurer fromsupervision.