Suspension or revocation of certificate of registration; additional penalties.
1. The Commissioner:
(a) Shall suspend or revoke the certificate of registration of an administrator if the Commissioner has determined, after notice and a hearing, that the administrator:
(1) Is in an unsound financial condition;
(2) Uses methods or practices in the conduct of his business that are hazardous or injurious to insured persons or members of the general public; or
(3) Has failed to pay any judgment against him in this state within 60 days after the judgment became final.
(b) May suspend or revoke the certificate of registration of an administrator if the Commissioner determines, after notice and a hearing, that the administrator:
(1) Has willfully violated or failed to comply with any provision of this Code, any regulation adopted pursuant to this Code or any order of the Commissioner;
(2) Has refused to be examined by the Commissioner or has refused to produce accounts, records or files for examination upon the request of the Commissioner;
(3) Has, without just cause, refused to pay claims or perform services pursuant to his contracts or has, without just cause, caused persons to accept less than the amount of money owed to them pursuant to the contracts, or has caused persons to employ an attorney or bring a civil action against him to receive full payment or settlement of claims;
(4) Is affiliated with, managed by or owned by another administrator or an insurer who transacts insurance in this state without a certificate of authority or certificate of registration;
(5) Fails to comply with any of the requirements for a certificate of registration;
(6) Has been convicted of or has entered a plea of guilty or nolo contendere to a felony, whether or not adjudication was withheld;
(7) Has had his authority to act as an administrator in another state limited, suspended or revoked; or
(8) Has failed to file an annual report in accordance with NRS 683A.08528.
(c) May suspend or revoke the certificate of registration of an administrator if the Commissioner determines, after notice and a hearing, that a responsible person:
(1) Has refused to provide any information relating to the administrator’s affairs or refused to perform any other legal obligation relating to an examination upon request by the Commissioner; or
(2) Has been convicted of or has entered a plea of guilty or nolo contendere to a felony committed on or after October 1, 2003, whether or not adjudication was withheld.
(d) May, upon notice to the administrator, suspend the certificate of registration of the administrator pending a hearing if:
(1) The administrator is impaired or insolvent;
(2) A proceeding for receivership, conservatorship or rehabilitation has been commenced against the administrator in any state; or
(3) The financial condition or the business practices of the administrator represent an imminent threat to the public health, safety or welfare of the residents of this state.
(e) May, in addition to or in lieu of the suspension or revocation of the certificate of registration of the administrator, impose a fine of $2,000 for each act or violation.
2. As used in this section, “responsible person” means any person who is responsible for or controls or is authorized to control or advise the affairs of an administrator, including, without limitation:
(a) A member of the board of directors, board of trustees, executive committee or other governing board or committee of the administrator;
(b) The president, vice president, chief executive officer, chief operating officer or any other principal officer of an administrator, if the administrator is a corporation;
(c) A partner or member of the administrator, if the administrator is a partnership, association or limited-liability company; and
(d) Any shareholder or member of the administrator who directly or indirectly holds 10 percent or more of the voting stock, voting securities or voting interest of the administrator.
Last modified: February 27, 2006