2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 3 - Authorization of Insurers and General Requirements 3.3-200 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 dismissal of an appeal before final determination,
(3)
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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