§ 27-35-9. Sanctions.
(a) Any insurer failing, without just cause, to file any registration statement as required
in this chapter shall be required, after notice and hearing, to pay a penalty of five
hundred dollars ($500) for each day's delay, to be recovered by the commissioner,
and the penalty so recovered shall be paid into the general revenue fund of this state.
The maximum penalty under this section is that determined pursuant to § 42-14-16. 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.
(b) Every director or officer of an insurance holding company system who knowingly violates,
participates in, or assents to, or who knowingly shall permit any of the officers
or agents of the insurer to engage in transactions or make investments which have
not been properly reported or submitted as required by this chapter or which violate
this chapter shall pay, in their individual capacity, a civil forfeiture determined
pursuant to § 42-14-16, after notice and hearing. In determining the amount of the civil forfeiture, the
commissioner shall take into account the appropriateness of the forfeiture with respect
to the gravity of the violation, the history of previous violations, and such other
matters as justice may require.
(c) Whenever it appears to the commissioner that any insurer subject to this act or any
director, officer, employee, or agent of the insurer has engaged in any transaction
or entered into a contract which is subject to § 27-35-4 of this chapter and which would not have been approved had approval been requested,
the commissioner may order the insurer to immediately cease and desist any further
activity under the transaction or contract. After notice and hearing the commissioner
may also order the insurer to void any contracts and restore the status quo if that
action is in the best interest of the policyholders, creditors, or the public.
(d) 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, that
insurer or any director, officer, employee, or agent thereof shall be in violation
of chapter 54 of this title.
(e) Whenever it appears to the commissioner that any person has committed a violation
of § 27-35-2 of this chapter and 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 14.1
of this title.