§431:11-111 Sanctions. [Section effective January 1, 2016. For section effective until December 31, 2015, see below.] (a) Any insurer failing, without just cause, to file any registration statement as required in this article shall be required, after notice and hearing, to pay a fine in an amount of not less than $100 and not more than $500 for each day's delay, to be recovered by the commissioner, and the penalty so recovered shall be paid into the compliance resolution fund. The commissioner may reduce the penalty if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
(b) Every director or officer of an insurance holding company system who knowingly violates, participates in, or assents to, or who knowingly permits any of the officers or agents of the insurer to engage in any transactions or make investments that have not been properly reported or submitted pursuant to section 431:11-105(a), 431:11-106(a)(2), or 431:11-106(b), or that violates this article, shall pay, in their individual capacity, a civil forfeiture of not less than $100 and not more than $10,000 per violation, after notice and hearing before the commissioner. In determining the amount of the civil forfeiture, the commissioner shall take into account the appropriateness of the civil forfeiture with respect to the gravity of the violation, the history of previous violations, and other matters as justice may require.
(c) Whenever it appears to the commissioner that any insurer subject to this article or any director, officer, employee, or agent thereof has engaged in any transaction or entered into a contract that is subject to section 431:11-106 and that would not have been approved had the approval been requested, the commissioner may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing, the commissioner may also order the insurer to void any of the contracts and restore the status quo if that action is in the best interest of the policyholders, creditors, or the public.
(d) Whenever it appears to the commissioner that any insurer or any director, officer, employee, or agent thereof has committed a wilful violation of this article, the commissioner may cause criminal proceedings to be instituted against the insurer or the responsible director, officer, employee, or agent thereof. Any insurer that wilfully violates this article may be fined not less than $100 and not more than $10,000 per violation. Any individual who wilfully violates this article may be fined in the person's individual capacity not less than $100 and not more than $10,000 per violation or be imprisoned for not more than one year, or both.
(e) Any officer, director, or employee of an insurance holding company system who wilfully and knowingly subscribes to or makes, or causes to be made, any false statements, false reports, or false filings with the intent to deceive the commissioner in the performance of the commissioner's duties under this article, upon conviction thereof, shall be imprisoned for not more than one year or fined $5,000, or both. Any fines imposed shall be paid by the officer, director, or employee in the person's individual capacity.
(f) Whenever it appears to the commissioner that any person has committed a violation of section 431:11-104 and that prevents the full understanding of the enterprise risk to the insurer by affiliates or by the insurance holding company system, the violation may serve as an independent basis for disapproving dividends or distributions and for placing the insurer under an order of supervision in accordance with part 2 of article 15. [L 1987, c 349, pt of §8; am L 1999, c 163, §15(1); am L 2000, c 182, §13; am L 2002, c 39, §14; am L 2014, c 234, §14]
§431:11-111 Sanctions. [Section effective until December 31, 2015. For section effective January 1, 2016, see above.] (a) Any insurer failing without just cause to file any registration statement as required in this article shall be liable for a fine in an amount of not less than $100 and not more than $500 for each day of delinquency, to be recovered by the commissioner, and the penalty so recovered shall be paid into the compliance resolution fund. The commissioner may reduce the penalty if the insurer demonstrates to the commissioner that the imposition of the penalty would constitute a financial hardship to the insurer.
(b) Every director or officer of an insurance holding company system who knowingly violates, participates in, or assents to, or who knowingly permits any of the officers or agents of the insurer to engage in any transactions or make investments that have not been properly reported or submitted pursuant to sections 431:11-105(a), 431:11-106(a)(2), or 431:11-106(b), or who violates this article, shall be subject to a fine of not less than $100 and not more than $10,000 per violation. In determining the amount of the fine, the commissioner shall take into account the appropriateness of the fine with respect to the gravity of the violation, the history of previous violations, and such other matters as justice may require.
(c) Whenever it appears to the commissioner that any insurer subject to this article or any director, officer, employee, or agent thereof has engaged in any transaction or entered into a contract which is subject to section 431:11-106 and which would not have been approved had the approval been requested, the commissioner may order the insurer to cease and desist immediately any further activity under that transaction or contract. After notice and hearing, the commissioner may also order the insurer to void any of the contracts and restore the status quo if that action is in the best interest of the policyholders, creditors, or the public.
(d) Whenever it appears to the commissioner that any insurer or any director, officer, employee, or agent thereof has committed a wilful violation of this article, the commissioner may cause criminal proceedings to be instituted against the insurer or the responsible director, officer, employee, or agent thereof. Any insurer who wilfully violates this article shall be subject to a fine of not less than $100 and not more than $10,000 per violation. Any individual who wilfully violates this article shall be subject to a fine in the individual's capacity of not less than $100 and not more than $10,000 per violation, or be imprisoned for not more than one year.
(e) Any officer, director, or employee of an insurance holding company system who wilfully and knowingly subscribes to or makes, or causes to be made, any false statements, false reports, or false filings with the intent to deceive the commissioner in the performance of the commissioner's duties under this article, upon conviction thereof, shall be imprisoned for not more than one year, or fined $5,000, or both. Any fines imposed shall be paid by the officer, director, or employee in the person's individual capacity. [L 1987, c 349, pt of §8; am L 1999, c 163, §15(1); am L 2000, c 182, §13; am L 2002, c 39, §14]
Section: Previous 431-11-105 431-11-106 431-11-107 431-11-107.5 431-11-108 431-11-109 431-11-110 431-11-111 431-11-112 431-11-113 431-11-114 431-11-115 431-11-116 431-11-117 431-11a-101 NextLast modified: October 27, 2016