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304.3-420 Authority of commissioner -- Actions.
(1)
(2)
(3)
(4)
(5)
If the commissioner believes that the controlling producer or any other person
has not materially complied with KRS 304.3-400 to 304.3-430, or any
administrative regulation or order promulgated under KRS 304.3-400 to
304.3-430, the commissioner may:
(a) Order the controlling producer to cease placing business with the
controlled insurer; or
(b) If it was found that because of the material noncompliance that the
controlled insurer or any policyholder has suffered any loss or damage,
the commissioner may maintain a civil action, intervene in an action
brought by or on behalf of the insurer or a policyholder for recovery of
compensatory damages for the benefit of the insurer or policyholder, or
seek other appropriate relief.
Appeals from orders issued under subsection (1) of this section shall be taken
as provided in Subtitle 2 of this chapter.
If an order for liquidation or rehabilitation of the controlled insurer has been
entered pursuant to Subtitle 33 of this chapter, and the receiver appointed
under that order believes that the controlling producer or any other person has
not materially complied with KRS 304.3-400 to 304.3-430, or any administrative
regulation or order promulgated under KRS 304.3-400 to 304.3-430, and the
insurer suffered any loss or damage, the receiver may maintain a civil action for
recovery of the damages or seek other appropriate sanctions for the benefit of
the insurer.
Nothing contained in this section shall affect the right of the commissioner to
exercise any other authority granted to him or her by law.
Nothing contained in this section is intended to or shall in any manner alter or
affect the rights of policyholders, claimants, creditors, or other third parties.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 980, effective July 15, 2010. -Created 1992 Ky. Acts ch. 157, sec. 5, effective July 14, 1992.
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