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304.48-220 Suspension or revocation of certificate of filing.
(1)
(2)
(3)
(4)
The commissioner may suspend or revoke any certificate of filing issued to a
liability self-insurance group under this subtitle if the commissioner finds that
any of the following conditions exist:
(a) The liability self-insurance group is operating significantly in contravention
of its basic organizational document or in a manner contrary to that
described in and reasonably inferred from any other information submitted
under this subtitle, unless amendments to the submissions have been
filed with and approved by the commissioner;
(b) The liability self-insurance group is no longer financially responsible and
may reasonably be expected to be unable to meet its obligations to
participants or prospective participants;
(c) The liability self-insurance group, or any person at its direction, has
advertised or merchandised its services in an untrue, misrepresentative,
misleading, deceptive, or unfair manner;
(d) The liability self-insurance group has engaged in any unfair or deceptive
practices under its certificate of filing; or
(e) The liability self-insurance group has failed to correct a violation of this
subtitle or the administrative regulations adopted thereunder, within a
reasonable time period established by the commissioner in administrative
regulations.
A certificate of filing shall be suspended or revoked only after compliance with
the hearing procedure set forth in KRS 304.2-310 to 304.2-370.
When a certificate of filing of a liability self-insurance group is suspended, the
group shall not, during the period of suspension, enroll any new participants
and shall not engage in any advertising or solicitation.
If the certificate of filing of a liability self-insurance group is revoked, the group
shall proceed, immediately following the effective date of the order of
revocation, to wind up its affairs, and shall conduct no further business except
as may be essential to the orderly conclusion of the affairs of the organization.
It shall engage in no further advertising or solicitation. The commissioner may,
by written order, prevent further operation of the group as he or she may find to
be in the best interest of the participants, to the end that the participants will be
afforded the greatest practical opportunity to obtain liability coverage
elsewhere. If the commissioner permits further operation, the liability
self-insurance group shall continue to collect the contributions and
assessments required of participants.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1601, effective July 15, 2010. -Created 1994 Ky. Acts ch. 358, sec. 22, effective July 15, 1994.
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