304.99-152 Penalties for violation of various provisions of Subtitle 37.
(1)
(2)
(3)
(4)
(5)
Any insurer failing, without just cause, to file any registration statement as required
by Subtitle 37 of this chapter, shall be required, after notice and hearing, to pay a
civil penalty of ten thousand dollars (,000) for each day's delay to the
commissioner. The maximum civil penalty under this section shall be one hundred
thousand dollars (0,000). The commissioner may reduce the civil penalty if the
insurer demonstrates to the commissioner that the imposition of the penalty would
constitute a financial hardship to the insurer.
Every director or officer of an insurance holding company system who knowingly
violates, participates in, 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 KRS 304.37-020(1), 304.37030(2), or 304.37-030(5), or which violate Subtitle 37 of this chapter, shall pay, in
their individual capacities, a civil penalty of not more than five thousand dollars
(,000) 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 civil penalty with respect to the gravity of the
violation, the history of previous violations, and other matters justice may require.
If it appears that any insurer subject to Subtitle 37 of this chapter, or any director,
officer, employee, or agent has engaged in any transaction or entered into any
contract which is subject to KRS 304.37-030 and which would not have been
approved had 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 the
contracts and restore the status quo if the action is in the best interest of the
policyholders, creditors, or the public.
If it appears that any insurer or any director, officer, employee, or agent has
committed a willful violation of Subtitle 37 of this chapter, the commissioner may
cause criminal proceedings to be instituted in the Circuit Court for the county in
which the principal office of the insurer is located, or if the insurer has no office in
Kentucky, in the Franklin Circuit Court against the insurer or the responsible
director, officer, employee, or agent. Any insurer which willfully violates Subtitle
37 of this chapter, may be fined not more than one hundred thousand dollars
(0,000). Any individual who willfully violates Subtitle 37 of this chapter, may
be fined in his or her individual capacity not more than one thousand dollars
(,000), be imprisoned for not more than one (1) to three (3) years, or both.
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 his or her duties under Subtitle 37 of this
chapter, upon conviction, shall be imprisoned for not more than one (1) year or
more than five (5) years, or fined ten thousand dollars (,000), or both. Any fines
imposed shall be paid by the officer, director, or employee in his or her individual
capacity.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1665, effective July 15, 2010. -- Created
1992 Ky. Acts ch. 267, sec. 9, effective July 14, 1992.
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