Duration of suspension; insurer’s obligations during suspension period; reinstatement.
1. Suspension of an insurer’s certificate of authority must be for such period as the Commissioner specifies in the order of suspension, but not to exceed 1 year. During the suspension period the Commissioner may rescind or shorten the suspension by his further order.
2. During the suspension period the insurer shall not solicit or write any new business in this state, but must file its annual statement, pay fees, licenses and taxes as required under this Code, and may service its business already in force in this state, as if the certificate of authority had continued in full force.
3. Upon expiration of the suspension period, if within such period the certificate of authority has not terminated, the insurer’s certificate of authority is automatically reinstated unless the Commissioner finds that the causes of the suspension, being other than a past event, are continuing, or that the insurer is otherwise not in compliance with the requirements of this Code, and of which the Commissioner shall give the insurer notice not less than 30 days in advance of expiration of the suspension period.
4. Upon reinstatement of the insurer’s certificate of authority, the authority of its agents in this state to represent the insurer is also reinstated. The Commissioner shall promptly notify the insurer and its agents in this state, of record in the Division, of such reinstatement.
Last modified: February 27, 2006