§ 38-26-40 — Conditions warranting supervision; notification.

(A) An insurer may be subject to administrative supervision by the department if upon examination or at another time it appears in the discretion of the director or his designee that one or more of the following circumstances exist: (1) The insurer's condition renders the continuance of its business hazardous to the public or to its insureds. (2) The insurer has exceeded its powers granted under its certificate of authority and applicable law. (3) The insurer has failed to comply with a provision of the insurance laws of this State. (4) The business of the insurer is being conducted fraudulently. (5) The insurer gives its consent. (B) If the director or his designee determines that one or more of the conditions set forth in subsection (A) exist, he shall: (1) notify the insurer of his determination; (2) furnish to the insurer a written list of the requirements to abate this determination; (3) notify the insurer that it is under the supervision of the department and that the director or his designee is applying the provisions of the chapter. Action by the director or his designee is subject to review pursuant to related regulations and the Administrative Procedures Act. (C) If placed under administrative supervision, the insurer has sixty days or another period of time designated by the director or his designee to comply with the requirements of the department subject to the provisions of this chapter. (D) If it is determined after notice and hearing that the conditions giving rise to the supervision still exist at the end of the supervision period, the director or his designee may extend the period or may initiate proceedings under Chapter 27 of this title. (E) If it is determined that none of the conditions giving rise to the supervision exist, the director or his designee shall release the insurer from supervision.

Legislative History

HISTORY: 1991 Act No. 13, SECTION 3; 1993 Act No. 181, SECTION 608.