Penalty for violation of certain provisions by director or officer of insurance holding company system; order of Commissioner to cease and desist; order of Commissioner to rescind certain contracts.
1. A director or officer of an insurance holding company system who knowingly violates, or knowingly participates in or assents to a violation of, NRS 692C.350, 692C.360, 692C.363 or 692C.390, or who knowingly permits any officer or agent of the insurance holding company to engage in a transaction in violation of NRS 692C.360 or 692C.363 or to pay a dividend or make an extraordinary distribution in violation of NRS 692C.390 shall pay, after receiving notice and a hearing before the Commissioner, a fine of not more than $10,000 for each violation. In determining the amount of the fine, the Commissioner shall consider the appropriateness of the fine in relation to:
(a) The gravity of the violation;
(b) The history of any previous violations committed by the director or officer; and
(c) Any other matters as justice may require.
2. Whenever it appears to the Commissioner that an insurer or any director, officer, employee or agent of the insurer has engaged in a transaction or entered into a contract to which the provisions of NRS 692C.363 apply and for which the insurer has not obtained the Commissioner’s approval, the Commissioner may order the insurer to cease and desist immediately from engaging in any further activity relating to the transaction or contract. In addition to issuing such an order, the Commissioner may order the insurer to rescind the contract and return each party to the contract to the position he was in before the execution of the contract if the issuing of the order is in the best interest of:
(a) The policyholders or creditors of the insurer; or
(b) The members of the general public.
Last modified: February 27, 2006