Suspension or revocation of certificate of authority: Mandatory grounds.
1. The Commissioner shall refuse to continue or shall suspend or revoke an insurer’s certificate of authority:
(a) If such action is required by any provision of this Code;
(b) If it is a foreign insurer and it no longer meets the requirements for a certificate of authority, on account of deficiency of capital or surplus or otherwise;
(c) If it is a domestic insurer and it has failed to cure an impairment of capital or surplus within the time allowed therefor by the Commissioner under this Code or is otherwise no longer qualified for the certificate of authority;
(d) If the insurer’s certificate of authority to transact insurance therein is suspended or revoked by its state of domicile, or state of entry into the United States of America if an alien insurer;
(e) For failure of the insurer to pay taxes on its premiums if required by this Code; or
(f) For failure of the insurer to furnish information to the Commissioner relating to medical malpractice insurance issued by the insurer in this State or any other state.
2. Except in case of insolvency, impairment of required capital or surplus, or suspension or revocation by another state, the Commissioner shall give the insurer at least 20 days’ notice in advance of any such refusal, suspension or revocation under this section, and of the particulars of the reasons therefor. If the insurer requests a hearing thereon within those 20 days, the Commissioner’s proposed action is automatically stayed until his order is made after the hearing.
Last modified: February 27, 2006