§ 27-35-9 - Criminal proceedings and civil penalties.
SECTION 27-35-9
§ 27-35-9 Criminal proceedings and civilpenalties. – (a) Criminal penalties. Whenever it appears to the commissioner that anyperson or any director, officer, employee, or agent of the person has committeda willful violation of this chapter, the commissioner may cause criminalproceedings to be instituted against the person or the responsible director,officer, employee, or agent of the person. Any insurer that willfully violatesthis chapter may be fined not more than ten thousand dollars ($10,000). Anyindividual who willfully violates this chapter may be fined not more than tenthousand dollars ($10,000) or, if the willful violation involves the deliberateperpetration of a fraud upon the commissioner, be imprisoned not more than two(2) years, or both.
(b) Civil penalties. (1) Any insurerfailing, without just cause, to file any registration statement as required inthis chapter shall be required, after notice and hearing, to pay a penalty offive hundred dollars ($500) for each day's delay, to be recovered by thecommissioner, and the penalty to be recovered shall be paid into the generalrevenue fund of this state. The maximum penalty under this section is tenthousand dollars ($10,000). The commissioner may reduce the penalty if theinsurer demonstrates to the commissioner that the imposition of the penaltywould constitute a financial hardship to the insurer;
(2) Every director or officer of an insurance holding companysystem who knowingly violates, participates in, or assents to, or who knowinglyshall permit any of the officers or agents of the insurer to engage intransactions or make investments which have not been properly reported orsubmitted as required by this chapter or which violate this chapter shall pay,in their individual capacity, a civil forfeiture of not more than one thousanddollars ($1,000) per violation, after notice and hearing before thecommissioner. In determining the amount of the civil forfeiture, the commissionshall take into account the appropriateness of the forfeiture with respect tothe gravity of the violation, the history of previous violations, and any othermatters that justice may require;
(3) Whenever it appears to the commissioner that any insurersubject to this act or any director, officer, employee, or agent of the insurerhas engaged in any transaction or entered into a contract which is subject to§ 27-35-4 of this chapter and which would not have been approved hadapproval been requested, the commissioner may order the insurer to immediatelycease and desist any further activity under the transaction or contract. Afternotice and hearing the commissioner may also order the insurer to void anycontracts and restore the status quo if that action is in the best interest ofthe policyholders, creditors, or the public.