§ 27-48-6 - Penalties.
SECTION 27-48-6
§ 27-48-6 Penalties. – (a) If the director believes that the controlling producer or any other personhas not materially complied with this chapter, or any regulation or orderpromulgated pursuant to this chapter, after notice and opportunity to be heard,the director may order the controlling producer to cease placing business withthe controlled insurer; and
(2) If it was found that because of the materialnoncompliance that the controlled insurer or any policyholder of the insurerhas suffered any loss or damage, the director may maintain a civil action orintervene in an action brought by or on behalf of the insurer or policyholderfor recovery of compensatory damages for the benefit of the insurer orpolicyholder or other appropriate relief.
(b) If an order for liquidation or rehabilitation of thecontrolled insurer has been entered pursuant to chapter 14.3 of this title, andthe receiver appointed under that order believes that the controlling produceror any other person has not materially complied with this chapter, or anyregulation or order promulgated pursuant to this chapter, and the insurersuffered any loss or damage from the noncompliance, the receiver may maintain acivil action for recovery of damages or other appropriate sanctions for thebenefit of the insurer.
(c) Nothing contained in this section shall affect the rightof the director to impose any other penalties provided for in the insurance law.
(d) Nothing contained in this section is intended to or shallin any manner alter or affect the rights of policyholders, claimants,creditors, or other third parties.