§ 27-51-7 - Penalties and liabilities.
SECTION 27-51-7
§ 27-51-7 Penalties and liabilities.– (a) If the commissioner finds after a hearing conducted in accordance with theAdministrative Procedures Act, chapter 35 of title 42, that any person hasviolated any provision(s) of this chapter, the commissioner may order:
(1) For each separate violation, a penalty in an amount notexceeding one thousand dollars ($1,000);
(2) Revocation or suspension of the producer's license. If itwas found that because of material noncompliance the insurer has suffered anyloss or damage, the commissioner may maintain a civil action brought by or onbehalf of the insurer and its policyholders and creditors for recovery ofcompensatory damages for the benefit of the insurer and its policyholders andcreditors or other appropriate relief.
(b) If an order of rehabilitation or liquidation of theinsurer has been entered pursuant to applicable Rhode Island law and thereceiver appointed under that order determines that the MGA or any other personhas not materially complied with this chapter, or any regulation or orderpromulgated pursuant to this chapter, and the insurer suffered any loss ordamage from the noncompliance, the receiver may maintain a civil action forrecovery of damages or other appropriate sanctions for the benefit of theinsurer.
(c) Nothing contained in this section shall affect the rightof the commissioner to impose any other penalties provided for in the insurancelaw.
(d) Nothing contained in this chapter is intended to or shallin any manner limit or restrict the rights of policyholders, claimants, andauditors.