§ 26.1-10-11 — Penalty

1. Any insurer failing, without just cause, to file any registration statement as required in
this chapter must be required, after notice and hearing, to pay a penalty of one
hundred dollars for each day's delay. The commissioner may reduce the penalty if the
insurer demonstrates to the commissioner that the imposition of the penalty would
constitute a financial hardship to the insurer.
2. Every director or officer of an insurance holding company system who knowingly
violates, participates in, or assents to, or who knowingly permits any of the officers or
agents of the insurer to engage in transactions or make investments which have not
been properly reported or submitted pursuant to sections 26.1-10-04 and 26.1-10-05,
or which violate this chapter, shall pay, in their individual capacity, a civil penalty of not
more than one thousand dollars per violation, after notice and hearing before the
commissioner. In determining the amount of the civil penalty, the commissioner shall
take into account the appropriateness of the penalty with respect to the gravity of the
violation, the history of previous violations, and such other matters as justice may
require.
3. Whenever it appears to the commissioner that any insurer subject to this chapter or
any director, officer, employee, or agent thereof has engaged in any transaction or
entered a contract which is subject to section 26.1-10-05 and which would not have
been approved had the approval been requested, the commissioner may order the
insurer to cease and desist immediately any further activity under that transaction or
contract. After notice and hearing, the commissioner may also order the insurer to void
any contracts and restore the status quo if it is in the best interest of the policyholders,
creditors, or the public.
4. Whenever it appears to the commissioner that any insurer or any director, officer,
employee, or agent thereof has committed a willful violation of this chapter, the
commissioner may institute criminal proceedings in the district court of the county in
which the principal office of the insurer is located or if the insurer has no principal office
in the state, then in the district court of Burleigh County against the insurer or the
responsible director, officer, employee, or agent of the company. Any insurer that
willfully violates this chapter may be fined not more than fifty thousand dollars. Any
individual who willfully violates this chapter may be fined in the individual's capacity not
more than ten thousand dollars.
5. Any officer, director, or employee of an insurance holding company system, who
willfully and knowingly subscribes to or makes or causes to be made any false
statements or false reports or false filings with the intent to deceive the commissioner
in the performance of the commissioner's duties under this chapter may be fined not
more than fifty thousand dollars. Any fines imposed must be paid by the officer,
director, or employee in the person's individual capacity.
6. If it appears to the commissioner any person has committed a violation of section
26.1-10-03 which prevents the full understanding of the enterprise risk to the insurer
by affiliates or by the insurance holding company system, the violation may serve as
an independent basis for disapproving dividends or distributions and for placing the
insurer under an order of supervision in accordance with chapter 26.1-06.2.