§ 27-20.7-15. Grounds for suspension or revocation of certificate of authority.
(a) The certificate of authority of an administrator shall be suspended or revoked if
the commissioner finds that the administrator is:
(1) In an unsound financial condition;
(2) Using any methods or practices in the conduct of its business so as to render its
further transaction of business in this state hazardous or injurious to insured persons
or the public; or
(3) Has failed to pay any judgment rendered against it in this state within sixty (60)
days after the judgment has become final.
(b) The commissioner may in his or her discretion, suspend or revoke the certificate of
authority of an administrator if the commissioner finds that the administrator:
(1) Has violated any lawful rule or order of the commissioner or any provision of the
insurance laws of this state;
(2) Has refused to be examined or to produce its accounts, records, and files for examination,
or if any of its officers has refused to give information with respect to its affairs
or has refused to perform any other legal obligation as to an examination, when required
by the commissioner;
(3) Has, without just cause, refused to pay proper claims or perform services arising
under its contracts or has, without just cause, caused covered individuals to accept
less than the amount due them or caused covered individuals to employ attorneys or
bring suit against the administrator to secure full payment or settlement of the claims;
(4) Is affiliated with or under the same general management or interlocking directorate
or ownership as another administrator or insurer that unlawfully transacts business
in this state without having a certificate of authority;
(5) Has at any time failed to meet any qualification for which issuance of the certificate
could have been refused had the failure then existed and been known to the department;
(6) Has been convicted of, or has entered a plea of guilty or nolo contendere to, a felony
without regard to whether adjudication was withheld; or
(7) Is under suspension or revocation in another state.
(c) The commissioner may in his or her discretion and without advance notice or hearing
immediately suspend the certificate of an administrator if the commissioner finds
that one or more of the following circumstances exist:
(1) The administrator is insolvent or impaired;
(2) A proceeding for receivership, conservatorship, rehabilitation or other delinquency
proceeding regarding the administrator has been commenced in any state; or
(3) The financial condition or business practices of the administrator pose an imminent
threat to the public health, safety, or welfare of the residents of this state.
(d) If the commissioner finds that one or more grounds exist for the suspension or revocation
of a certificate of authority issued under this part, the commissioner may, in lieu
of suspension or revocation, impose a fine upon the administrator.