§ 27-54-4 - Duty to notify.
SECTION 27-54-4
§ 27-54-4 Duty to notify. – (a) Whenever an officer or director of an insurance company knows that amaterial false statement or representation has been made to the director or thedirector's designee, or that false testimony has been given, or that a materialfalse entry has been made in the books of the insurance company, or that theassets, property or securities of an insurance company have been materiallyovervalued, or that material information has been withheld from the director orthe director's designee, in violation of § 27-54-1 of this chapter, he orshe shall notify the director or the director's designee of those matters assoon as reasonably possible but in no event later than ten (10) days after theofficer or director knows or has reasons to know of those matters. Failure toreport as such will subject the violator to a fine of up to one thousanddollars ($1000) and imprisonment of up to one year, or both.
(b) The director or the director's designee shall review eachreport and undertake any further investigations he or she deems necessary andproper to determine the validity of the allegations.