§ 27-20.7-15 - Grounds for suspension or revocation of certificate of authority.
SECTION 27-20.7-15
§ 27-20.7-15 Grounds for suspension orrevocation of certificate of authority. – (a) The certificate of authority of an administrator shall be suspended orrevoked if the commissioner finds that the administrator is:
(1) In an unsound financial condition;
(2) Using any methods or practices in the conduct of itsbusiness so as to render its further transaction of business in this statehazardous or injurious to insured persons or the public; or
(3) Has failed to pay any judgment rendered against it inthis state within sixty (60) days after the judgment has become final.
(b) The commissioner may in his or her discretion, suspend orrevoke the certificate of authority of an administrator if the commissionerfinds that the administrator:
(1) Has violated any lawful rule or order of the commissioneror any provision of the insurance laws of this state;
(2) Has refused to be examined or to produce its accounts,records and files for examination, or if any of its officers has refused togive information with respect to its affairs or has refused to perform anyother legal obligation as to an examination, when required by the commissioner;
(3) Has, without just cause, refused to pay proper claims orperform services arising under its contracts or has, without just cause, causedcovered individuals to accept less than the amount due them or caused coveredindividuals to employ attorneys or bring suit against the administrator tosecure full payment or settlement of the claims;
(4) Is affiliated with or under the same general managementor interlocking directorate or ownership as another administrator or insurerthat unlawfully transacts business in this state without having a certificateof authority;
(5) Has at any time failed to meet any qualification forwhich issuance of the certificate could have been refused had the failure thenexisted and been known to the department;
(6) Has been convicted of, or has entered a plea of guilty ornolo contendere to, a felony without regard to whether adjudication waswithheld; or
(7) Is under suspension or revocation in another state.
(c) The commissioner may in his or her discretion and withoutadvance notice or hearing immediately suspend the certificate of anadministrator if the commissioner finds that one or more of the followingcircumstances exist:
(1) The administrator is insolvent or impaired;
(2) A proceeding for receivership, conservatorship,rehabilitation or other delinquency proceeding regarding the administrator hasbeen commenced in any state; or
(3) The financial condition or business practices of theadministrator pose an imminent threat to the public health, safety or welfareof the residents of this state.
(d) If the commissioner finds that one or more grounds existfor the suspension or revocation of a certificate of authority issued underthis part, the commissioner may, in lieu of suspension or revocation, impose afine upon the administrator.