2016 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 3 - Authorization of Insurers and General Requirements 304.3-200 Suspension or revocation of certificate of authority -- Discretionary and special grounds.
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304.3-200 Suspension or revocation of certificate of authority -- Discretionary and
special grounds.
(1)
(2)
The commissioner may, in his or her discretion, refuse to continue or may suspend
or revoke an insurer's certificate of authority if he or she finds after a hearing
thereon, or upon waiver of hearing by the insurer, that the insurer has:
(a) Willfully violated or willfully failed to comply with any lawful order of the
commissioner; or
(b) Willfully violated or willfully failed to comply with any lawful regulation of
the commissioner; or
(c) Willfully violated any provision of this code other than those for violation of
which suspension or revocation is mandatory; or
(d) Failed to pay taxes on its premiums as required by law; or
(e) Has committed any unfair claims settlement practice as defined in Subtitle 12
or regulations promulgated thereunder.
In lieu of or in addition to such suspension or revocation, the commissioner may, in
his or her discretion, reprimand the insurer, which shall be made a part of the
insurer's record, or may levy upon the insurer, and the insurer shall pay forthwith, an
administrative fine as specified in KRS 304.99-020.
The commissioner shall suspend or revoke an insurer's certificate of authority on
any of the following grounds, if he or she finds after a hearing thereon that the
insurer:
(a) Is in unsound condition, or is being fraudulently conducted, or is in such
condition or using such methods and practices in the conduct of its business as
to render its further transaction of insurance in this state currently or
prospectively hazardous or injurious to policyholders or to the public;
(b) With such frequency as to indicate its general business practice in this state:
1.
Has without just cause failed to pay, or delayed payment of, claims
arising under its policies, whether the claim is in favor of an insured or
is in favor of a third person with respect to the liability of an insured to
such third person; or
2.
Without just cause compels insureds or claimants to accept less than the
amount due them or to employ attorneys or to bring suit against the
insurer or such an insured to secure full payment or settlement of such
claims;
(c) Refuses to be examined, or if its directors, officers, employees or
representatives refuse to submit to examination relative to its affairs, or to
produce its accounts, records and files for examination by the commissioner
when required, or refuse to perform any legal obligation relative to the
examination;
(d) Has failed to pay any final judgment rendered against it in this state upon any
policy, bond, recognizance or undertaking as issued or guaranteed by it, within
thirty (30) days after the judgment became final or within thirty (30) days after
(3)
dismissal of an appeal before final determination, whichever date is the later;
(e) Has actual knowledge by the chief executive officer or person in charge of
Kentucky operations that an agent employed by the insurer has engaged or is
engaging in conduct in violation of this code and the insurer has failed to
report such conduct to the department; or
(f) No insurer, its agents, servants, or employees shall incur any liability in
connection with or as a result of any disclosure made to the commissioner of
insurance pursuant to the provisions of this section.
The commissioner may, in his or her discretion and without advance notice or a
hearing thereon, immediately suspend the certificate of authority of any insurer as to
which proceedings for receivership, conservatorship, rehabilitation or other
delinquency proceedings have been commenced in any state by the public insurance
supervisory officer of such state.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 971, effective July 15, 2010. -- Amended
1988 Ky. Acts ch. 225, sec. 18, effective July 15, 1988. -- Amended 1984 Ky. Acts
ch. 171, sec. 4, effective July 13, 1984. -- Amended 1982 Ky. Acts ch. 320, sec. 8,
effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 341, sec. 2, effective June 17,
1978. -- Created 1970 Ky. Acts ch. 301, subtit. 3, sec. 20, effective June 18, 1970.
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